Travel retail sales increased by 23 percentage points in Q2 by PMI, which was fostered by the booming of smoke-free products and the growth in U.S. retail volumes.

Philip Morris International (PMI) reported a strong year-on-year increase of 23 percent in sales of cigarettes and heated tobacco products (HTPs) in global travel retail in Q2, far exceeding the growth in the retail industry as a whole.

Their total company revenue was up by 7.1 percent to 10.1 billion in the second quarter of 2019, with much of this growth having been spearheaded by its smoke-free product offering. PMI indicated that the retail forces in travel centers were able to offset the decreased cigarette consumption, particularly in such markets as Australia (down 50.2%) and South Korea (down 2.4%).

Travel retail meant a lot in the success story of PMI, as the company projects the growth of 7.8 percent in travel retail. The U.S. record, meanwhile, was particularly bright as the volumes of travel retail climbed to approximately 2.5 million cans of nicotine pouches in Q2 this year compared with nothing during the same period in 2020.

Smoke-free products generated $4.2 billion in net revenues, which currently consists of 41 percent of the total revenues. During the first half of 2025, the company has shown a 6.5 percent upward growth to a total of 19.4 billion in revenue, with the performance of retail stores in the smoke-free segment rising a staggering 15.1 percent.

CEO Jacek Olczak highlighted the company occupying a favorable position in all retail areas, in particular, the smoke-free options IQOS and ZYN. PMI has increased its full-year outlook with more retail sales and strong growth in operating income.