Philippine DTI encourages production of heating noncombustible products

The Philippine Department of Trade and Industry (DTI) has called on tobacco companies to produce heated non-combustible merchandise (HTP) in the Philippines due to surging domestic demand and increased export opportunities, Philippine News reported.


DTI Undersecretary Ceferino Rodolfo at the International Cigarette Agriculture Summit (CeferinoRodolfo) on August 2 reported that while local demand for tobacco in the Philippines is projected to decline from 49.61 billion in 2022 to 39.06 billion in 2027, sales of heated non-combustible-products-will-increase significantly during the same period.


Retail sales of heated non-combustible products are projected to increase by 511 percent to 4.06 billion sticks by 2027, he cited Euromonitor.


Rudolph said companies producing heated noncombustible products will benefit due to free trade agreements between the Philippines and regional markets. “If you produce heating noncombustible products in the Philippines, you can export them at zero tariffs to ASEAN (except Vietnam), Australia, New Zealand, Japan, Korea and Hong Kong, China,” he said.


Based on 2022 data, South Korea ($102.2 million) is the leading export destination for Philippine cigarette products. , Thailand ($98.29 million), and Myanmar ($49.4 million).


According to Rodolfo, the Philippine Fimmons Tobacco Co. plans to build a P9-billion plant for the production of IQOS devices in Tanauan, Batangas.