Tobacco Asia

16 tobaccoasia FRONT PAGE NEWS 卷首新闻 The letter cited Massachusetts and California as examples of states that experienced illicit tobacco market growth after enacting laws banning the sale of flavored tobacco. Alarming Levels of Illicit Cigs in EU, Especially France The illegal market in the European Union continued its growing trend last year, increasing by an estimated 0.7%, primarily due to growth in countries like France and Belgium. The 2022 KPMG annual study on illicit cigarette consump- tion in the EU, UK, Norway, Switzerland, Moldova, and Ukraine, commissioned by Philip Morris Products SA, reveals that 35.8 billion illicit cigarettes were consumed across the EU alone, causing governments the loss of an estimated €11.3 billion in tax revenue—8.5% more than in 2021. The growth of the illicit market in the EU was partly driven by the continued rise of counterfeit consumption, which reached its highest level ever recorded. Notably, the vast majority of counterfeits (61.5%) were consumed in France. The country remains the largest illicit market in the EU and now accounts for 47% of total illicit cigarette consumption in the region. An estimated eight billion illicit cigarettes consumed in France were counterfeited products. Gregoire Verdeaux, PMI's senior vice president of external affairs, said, "It has truly become a 'made in the EU' problem, as fake cigarettes are being manufactured, distributed, sold, and consumed in countries within the EU, undermining efforts to reduce and eliminate cigarette smoking—and public health goals altogether." Despite the overall rise in illicit consumption, 21 out of 27 EU members reported stable or declining levels of illicit cigarette consumption in 2022, according to the KPMG analysis. With France excluded, the study's remaining markets saw a 7.5% loss in overall illicit consumption, primarily as a result of decreases in Greece, the Netherlands, Portugal, and Romania. Particularly in Poland and Romania, illicit consump- tion reached the lowest-ever incidence since KPMG began publishing its annual studies. Moldova and Ukraine were included in the KPMG report for the first time. The 2022 findings placed Ukraine as the second-largest market in Europe for illicit cigarette consump- tion with 7.4 billion cigarettes, behind France's 16.9 billion. The share of illicit cigarettes in Ukraine has followed an increasing trend since 2018—in 2022, 1 out of 5 cigarettes consumed stemmed from the illicit market. The third-largest illicit market in Europe is the UK, with 5.9 billion illicit cigarettes, on the rise since 2020. Twelve US States Smoke 50% More A recent report indicates that individuals residing in 12 states located in the South and Midwest regions of the US are more inclined to smoke and engage in higher smoking rates com- pared to those in other parts of the country. Despite constituting around 21% of the total US popula- tion, these states account for approximately 28% of the country's smokers. The prevalence of smoking in these states is approximately 50% higher than in the rest of the US. On average, individuals in these states consume around 53 packs of cigarettes per year, whereas those in other states consume an average of 29 packs annually. This results in a difference of roughly 500 cigarettes per person each year. Approximately 19% of adults in these states are smokers, in contrast to about 13% of adults in other states. A similar trend is observed among young adults, with roughly 11% of individuals under 25 in these states being smokers, compared to less than 8% in other states. Teenagers in these states also exhibit higher rates of smoking. This pattern of higher smoking prevalence in the 12 states has persisted consistently over the past five years, as reported by Truth Initiative. The organization attributes much of this disparity to the relatively weaker local policies on tobacco prevention and cessation in these states, which are influenced by the tobacco industry and lack sufficient political will from decision-makers. For instance, numerous local governments have enacted laws restricting the sale of flavored tobacco, but only three of these jurisdictions are located within the 12 states with higher smoking prevalence. Consultation on Smoking Launched in Hong Kong A new public consultation was initiated to address the issue of smoking cessation. The consultation, which involves a citywide questionnaire, commenced recently, and is set to conclude on September 30. Health authorities have outlined four new anti-smoking strategies. Concerns were raised by members of the city's top decision-making body regarding the potential strong opposi- tion from smokers and the business sector. The strategies encompass various aspects, including the potential ban of tobacco sales to individuals born after a specific date and a proposal to increase tobacco duty to 75%. Other directions outlined in the strategies involve strength- ening law enforcement against illicit cigarette activities, curbing the circulation of alternative smoking products, expanding non-smoking areas to minimize the impact of second-hand smoke, and enhancing the management of smoke-free premises. One of the proposed measures is to regulate the additives in tobacco products, such as menthol, fruit, and confectionery flavors. Authorities are also contemplating increasing the fixed penalty for individuals who smoke while walking and standard- izing the requirement of plain packaging for tobacco products. The overall objective of the next phase is to reduce the smoking prevalence from 9.5% in 2021 to 7.8% by 2025. Last year illicit cigarettes cost governments in Europe the loss of an estimated €11.3 billion in tax revenue—8.5% more than in 2021.

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