Argentina officially issued a heat-not-burn ban, iQOS introduction plan may be stranded
Leave a message
Argentina officially issued a heat-not-burn ban, iQOS introduction plan may be stranded
On March 27, local time, Argentina officially released Resolution No. 565/2023 in the Official Gazette: The Ministry of Health will prohibit the import, distribution, marketing, and promotion of heat-not-burn products. The communique stated that the measure aims to limit the use of heat-not-burn electronic cigarettes that are considered harmful to health, and encourage people to obtain reliable information based on scientific evidence to understand the health effects of all forms of tobacco use.
According to relevant public information, there are more than 7 million adult smokers in Argentina. Although heat-not-burn products have not been clearly restricted in Argentina before, iQOS has not officially entered the market. Import restrictions and high tax rates have prevented Philip Morris International from officially introducing iQOS in Argentina.
According to public information, Philip Morris International operates the Argentine market through its subsidiary Massalin Particulares, accounting for about 60% of the cigarette market in Argentina. Its main brands include Marlboro, Parliament, Chesterfield, L&M and Philip Morris.
Previous data showed that Marlboro, the flagship brand of Philip Morris International in Argentina, contributed 28% of its sales. However, Philip Morris International has publicly stated that it plans to "retreat Marlboro to the second line" by introducing iQOS. But obviously, this plan has been shelved with the heat-not-burn ban.
In terms of other categories of e-cigarettes, atomized e-cigarettes are defined as tobacco products in Argentina and banned from sale, advertising, distribution and importation in a 2011 ruling. At the same time, the Argentine Tobacco Control Law prohibits the use of e-cigarettes in closed public places and public transportation.
In Argentina, both snuff and nicotine replacement therapy are clearly legal, and nicotine replacement therapy does not require a prescription and can be purchased directly in pharmacies. At present, Argentina has a market size of several million euros for nicotine replacement therapy.
But it is worth noting that although vaping e-cigarettes have been banned before, and heat-not-burn is also banned now, the black market for Argentine e-cigarettes has been rampant for many years, with neighboring Paraguay as the main source of import, plus a very mature online Sales channels, it is unclear how much practical impact this ban will have.
