Saudi Arabia is experiencing a significant shift in consumer behavior, particularly regarding products like tobacco and nicotine. Philip Morris International (PMI) is adapting its strategy to align with these changes, focusing on smoke-free products and direct engagement with increasingly informed consumers. This evolution is driven by greater digital connectivity, global awareness, and a willingness to explore alternatives, according to industry leaders.
The Changing Saudi Consumer and Demand for Smoke-Free Alternatives
Consumers in Saudi Arabia are markedly different than they were a decade ago. Christian Akiki, Managing Director of Philip Morris Saudi Arabia Trading, notes a growing sophistication and openness to new experiences. This heightened awareness is influencing market trends, with consumers becoming more vocal about their expectations from brands.
This demand for authenticity and transparency extends to the tobacco and nicotine industry. Consumers are actively seeking information and exploring smoke-free products as potential alternatives. This trend is fueled by increased exposure to international markets and a desire for healthier options, a shift also reflected in the broader health initiatives within Saudi Vision 2030.
Regulatory Collaboration is Key
PMI recognizes the importance of working closely with Saudi regulatory authorities to facilitate this transition. Akiki emphasizes that meaningful progress towards a smoke-free future requires strong partnerships, particularly with the Saudi Food and Drug Authority (SFDA).
The SFDA’s openness to scientific discussion has been a positive factor, as demonstrated by the approval and launch of nicotine pouches by Badael, a Public Investment Fund (PIF) company, two years ago. This indicates a willingness to consider and regulate innovative tobacco alternatives based on scientific evidence.
Alignment between industry and regulators allows for a shared platform to advance the adoption of reduced-risk products. Transparent communication of scientific knowledge to consumers is crucial, enabling them to make informed choices based on reliable data, rather than misinformation.
Leveraging Local Expertise and Technology
PMI is also prioritizing the development of local talent to better understand the nuances of the Saudi market. Strategies successful in other regions, such as Japan, may not translate directly to Saudi Arabia due to cultural and consumer preferences.
Local teams are essential for interpreting these unique needs and tailoring approaches accordingly. Saudi Arabia’s advanced technological infrastructure provides a significant advantage, allowing companies to engage with consumers through modern channels and disseminate information about nicotine products effectively.
The combination of informed consumers, supportive regulators, and advanced technology creates a favorable ecosystem for science-based dialogue. Successes in Saudi Arabia can potentially serve as models for other markets globally.
Furthermore, the Kingdom’s embrace of technological innovation, a core tenet of Vision 2030, supports the introduction and acceptance of advanced smoke-free technologies like heated tobacco devices.
Looking ahead, the continued success of PMI and other companies in the tobacco and nicotine space in Saudi Arabia will depend on maintaining open communication with the SFDA and providing consumers with clear, scientifically-backed information. The SFDA is expected to release updated guidelines on product registration and marketing for novel nicotine delivery systems in the coming months, which will be a key indicator of the regulatory environment’s future direction. Monitoring consumer uptake of existing alternatives and the impact of these new regulations will be crucial for understanding the long-term trajectory of the Saudi market.
