Philip Morris International business transformation

Philip Morris International (PMI) is executing a long-term strategic transformation to transition from traditional cigarettes to smoke-free and smokeless alternatives.

During presentations at industry events in Buenos Aires and Belgrade, the company detailed its focus on three primary product categories: heated tobacco devices such as IQOS, electronic cigarettes, and nicotine pouches. This shift is supported by a significant investment in research and development, with the company employing approximately 1,600 scientists and engineers to manage complex technological requirements like miniaturized temperature regulation and software development.

At the TECHNOVATION SEE 2026 regional conference in Belgrade, Tamara Milovanović, General Director of PMI for Southeast Europe, reflected on the fifteen-year strategic shift initiated in 2016. Milovanović noted that the IQOS brand has already surpassed Marlboro in various market segments. The company continues to emphasize the role of science in its transformation, utilizing its research and development center to develop smoke-free products and conduct research related to quality of life. Corporate responsibility efforts also remain focused on health risk reduction and the protection of minors. Despite the technological shift, the company maintains that nicotine is addictive and that the best health decision is to avoid tobacco and nicotine entirely.