Your investment journey in Canada starts with Immediate Core
  • UK retailers ranked affordability as the most important consideration for adult smoking customers choosing a smoke-free alternative in 2023
  • Over half (57%) of all UK retailers believe smokers switching to alternatives in 2023 will purchase the cheapest products available, followed by those offering the best value for money
  • Over half (56%) stock heated tobacco products, like HEETS tobacco sticks and IQOS ORIGINALS DUO – the UK’s number one heat-not-burn product[i] – for smokers looking to make a better choice at the start of the new year

New data from KAM[ii] on behalf of Philip Morris Limited (PML), can reveal that UK retailers expect affordability to be the deciding factor for adult smokers choosing a smoke-free alternative in 2023.

In its third consecutive year of running the survey, PML asked 250 UK convenience retailers what factors they believe will be important for adult smokers switching to smoke-free alternatives at the start of the new year and throughout 2023.

When asked what customers will look for when choosing a smoke-free alternative, retailers prioritised price with over half (57%) agreeing that customers would select the cheapest products available, followed by those products offering the best overall value for money (18%). Smoke-free alternatives that offered the widest taste range available (10%) and those offering convenience and ease (5%) ranked third and fourth, respectively.

Asked what may prevent smokers from choosing a smoke-free product this year, price again was a factor with 6 in 10 retailers concerned that alternatives may be too expensive. Despite this, over two-thirds (68%) agree that smokers will use smoke-free products as a better alternative in 2023, with retailers themselves ready to support this transition.

Over half (56%) said that they stock heat-not-burn products, such as HEETS tobacco sticks, priced at £5 per pack[iii], and IQOS ORIGINALS DUO – the UK’s number one heat-not-burn product[iv] – to help their customers make the switch in 2023.

Kate O’Dowd, Head of Commercial Planning at PML in the UK and Ireland, said: “With the average price of cigarettes now £12.73 per pack[v], the data shows that retailers have listened to what customers have told them and stocked a range of smoke-free alternatives that are affordable and more importantly, a better choice than continuing to smoke.”

O’Dowd added: “2023 will be the year of the multi-category, whereby retailers should offer affordable smoke-free choices that don’t compromise on taste, quality, or satisfaction for the user. With HEETS tobacco sticks costing less than half the price of an average pack of cigarettes[vi], IQOS ORIGINALS DUO offers customers a real tobacco alternative and cigarette-like satisfaction[vii], at a fraction of the price of smoking.” 

IQOS is the result of a $9billion investment by Philip Morris International (PMI)[viii], to replace cigarettes with science-based smoke-free alternatives as fast as possible.

[i] As of October 2022, IQOS – Philip Morris International’s heated tobacco system – had a value share of the Heat not Burn segment in the UK of 99.50%, meaning IQOS was the UK’s number one product in that category, encompassing all devices and consumables. (Nielsen data)

[ii] PML New Year’s Resolution research. Respondents: telephone interviews with 250 UK convenience retailers Fieldwork dates: 17th November to 1st December 2022. KAM

[iii] Recommended Retail Price (RRP) of HEETS in the UK is £5

[iv] As of October 2022, IQOS – Philip Morris International’s heated tobacco system – had a value share of the Heat not Burn segment in the UK of 99.50%, meaning IQOS was the UK’s number one product in that category, encompassing all devices and consumables. (Nielsen data)

[v] Average price of 20 cigarettes at £12.73 per pack (Source: ONS dataset. Average price – Cigarettes 20 king size filter, November 2022)

[vi] Assuming average price of 20 cigarettes at £12.73 per pack (Source: ONS dataset. Average price – Cigarettes 20 king size filter, November 2022). Claim assumes 12-month average cost of smoking versus using IQOS. In comparison to an RRP of £5 for a pack of 20 HEETS, excluding the cost of an IQOS device

[vii] 3-month clinical studies conducted in US and Japan with 160 adult smokers each under conditions (ambulatory)

[viii] Philip Morris International (PMI) 2022 Q3 Earnings Results (20 October 2022)

Comments are closed.


Agreement

To use this website, you must be aged 18 years or over

This will close in 0 seconds