Mexico's E-cigarette Reform May Lead To Market Changes, Philip Morris International Calls For Strengthening The Fight Against The Black Market

Mexico's e-cigarette reform may lead to market changes, Philip Morris International calls for strengthening the fight against the black market

PMI Mexico advocates for strict regulations to protect consumers, focusing on cracking down on illegal products while reserving market space for legal products.

According to Expansión on December 17, Manuel Chinchilla, CEO of Philip Morris International Mexico (PMI), said after the approval of the Mexican e-cigarette reform that the company supports the regulation of nicotine consumption substitutes and the right of consumers to make informed choices based on scientific evidence. Before the ban on e-cigarette sales was upgraded to constitutional, PMI applied for and obtained permission to import heated tobacco products and their components.

At present, the company's products may be included in secondary regulations. PMI advocates for the establishment of a "strict regulation" to protect consumers. PMI hopes that the regulatory focus will be on cracking down on illegal products while reserving market space for legal products.

IQOS entered the Mexican market in 2019 and has attracted 100,000 users. It is sold in 20 self-operated sales points and department stores including Sanborns. The new reform does not specify whether heated tobacco devices will be included, which may provide PMI with room for operation. However, secondary regulations could extend the ban or impose special taxes on the devices.

PMI has invested $12.5 billion in developing new tobacco products since its launch in 2016, saying it offers a less risky option for adult smokers and that a ban would only promote the development of the illegal market.

Since the presidential decree banned e-cigarettes in February 2020, Mexico's black market has expanded dramatically. The Federal Commission for the Prevention of Sanitary Risks (Cofepris) estimates that by 2022, about 5 million people will have used e-cigarettes, of which 975,000 use them regularly. Regulatory expert Hiram Vera warned that a ban would exacerbate the problem. For habitual nicotine consumers, if there is no legal option, they may turn to the black market to buy products of unknown origin and quality.

The CEO of Philip Morris International Mexico stressed the need for effective regulation. Despite legal restrictions, it is still easy to find illegal products on the market. The real public health threat lies in these illegal products, and regulation should be focused there.