India Upholds 2019 E-Cigarette Ban, Halting Philip Morris's IQOS Launch
India has upheld its 2019 ban on e-cigarettes, blocking Philip Morris's plan to launch IQOS after four years of lobbying. The decision impacts a market that contributed roughly 30% of company revenue in fiscal 2025 and drove a 39.2% rise in local shipment volumes last year.
1. India Upholds E-Cigarette Ban
India has maintained its 2019 prohibition on all e-cigarettes and heat-not-burn products, blocking Philip Morris’s planned IQOS launch despite four years of direct engagement with central and state officials.
2. Market Impact and Revenue Exposure
India falls within PMI’s SSEA, CIS & MEA segment, which accounted for roughly 30% of total revenue in fiscal 2025. Global cigarette and heated tobacco shipments rose 1.7% to 379.6 billion units, driven by a 39.2% surge in Indian volumes.
3. Smoke-Free Product Momentum
IQOS has attracted over 35 million users globally since its 2014 debut. In the fourth quarter, smoke-free products represented more than half of sales across 27 markets, including South Korea, Poland, Italy, Romania and the U.S.
4. Growth Outlook and Strategic Challenges
Philip Morris engaged senior Indian officials and a parliamentary panel from 2021–2025 and held discussions at global forums to secure market access. Industry analysts warn that losing access to the world’s seventh-largest cigarette market could constrain long-term growth as other key markets mature.