Altria's 2028 Smoke-Free Goals Challenged by Market Dynamics
Altria, known for Marlboro cigarettes, is reconsidering its 2028 smoke-free goals due to competition from unregulated disposable vapes. With a significant market share of illicit products, Altria struggles to increase its smoke-free volumes and revenues. A patent dispute with Juul Labs further complicates NJOY's market prospects.
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- Country:
- United Kingdom
Altria Group, the company behind Marlboro cigarettes, is reassessing its 2028 goals for smoke-free product sales in the United States. This re-evaluation follows increased competition from unregulated disposable vapes, a sector that saw a 30% growth in 2024, driven largely by non-compliant products.
The firm highlighted these challenges while announcing its full-year results, emphasizing the impact of illicit disposables on its market strategy. Altria aimed to expand U.S. volumes of smoke-free products by 35% from 800 million units in 2022 and double its revenue to $5 billion by 2028, but widespread trade in unauthorized vapes threatens these targets.
Also complicating Altria's plans, a U.S. trade tribunal sided with rival Juul Labs in a patent dispute, restricting some NJOY imports. Despite these hurdles, the company projects 2025 adjusted earnings per share between $5.22 and $5.37, aligning with market expectations.
(With inputs from agencies.)
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- Altria
- Marlboro
- cigarettes
- smoke-free
- goals
- market
- growth
- disposable
- vapes
- patent
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