Tobacco Asia

16 tobaccoasia FRONT PAGE NEWS 卷首新闻 strategy to have two-thirds of Philip Morris's revenue come from smoke-free alternatives to cigarettes by 2030. However, the surge in popularity of Zyn is also attracting underage users. An estimated half a million teens in the US are using nicotine. PMI was recently fined US$1.2 million for selling pouches with banned flavors in Washington, DC, which are considered more appealing to young people. Zyn and other nicotine pouches remain unapproved by the FDA—Swedish Match filed its application in March 2020—but are allowed to stay on the market while awaiting review. Despite this, demand has surged: Zyn sales grew 41.4% in the third quarter in the US compared to the previous year, reaching 149.1 million cans. In response to supply shortages, PMI has made additional investments in its Owensboro, KY plant and announced plans to build a new factory in Colorado. Sweden Now Smoke-Free Sweden has made history by officially becoming "smoke-free," according to groundbreaking government data. The nation achieved this milestone 16 years ahead of the European Union's target. Figures from Sweden's public health agency show that just 4.5% of Swedish-born adults smoke, well below the internationally recognized 5% benchmark for smoke-free status. In comparison, the average smoking rate across Europe is 24%—five times higher. New statistics reveal that 5.3% of all adults in Sweden, including immigrants, currently smoke. Notably, the data shows that individuals born elsewhere in Europe are, on average, three times more likely to smoke in their home countries than they are after moving to Sweden. "In the early 1960s, nearly half of Swedish men smoked. By embracing and encouraging the use of alternative nicotine products such as snus, oral nicotine pouches, and vapes, Sweden has paved a clear path to a smoke-free society while safeguarding public health," said Dr. Delon Human, leader of Smoke Free Sweden. "They should serve as a beacon of hope for the rest of the world and as inspirational proof that a pragmatic, enlightened approach can deliver sensational public health gains and save lives." "Key to Sweden's success is its pragmatic focus on harm reduction rather than prohibition. A wide range of safer nicotine products, with a variety of strengths and flavors, is legally available both online and in stores, supported by advertising, which raises awareness and encourages uptake," said Dr. Anders Milton, a physician and former president and c.e.o. of the Swedish Medical Association. Dr. Human added, "While Sweden celebrates this historic achievement, most other nations remain far from reaching their smoke-free goals. Their rigid, prohibitionist policies limit access to safer nicotine alternatives, including oral nicotine products and e-cigarettes. These regressive measures are pushing smokers away from potentially life-saving tools and stalling progress toward reducing tobacco harm. "Rather than follow Sweden's lead, these nations are heading in the opposite direction, with smoking prevalence stagnating or even rising. Sweden's success is living proof that alternative nicotine products are a powerful force for positive change when supported by evidence-based policies." Victoria Targets Illegal Tobacco with Tough New Laws The Victorian government is set to introduce the strictest penalties in Australia with new legislation aimed at tackling the illegal tobacco trade. Under the proposed laws, the state will implement a tobacco licensing system for retailers, empower police with enhanced authority and resources to target illegal sellers, and create a dedicated tobacco regulator with special- ized inspectors. Anyone caught selling tobacco without a license could face fines of up to A$355,000 or up to 15 years in prison, while businesses found in violation could be fined as much as A$1.7 million. Under the government's new scheme, tobacco sales will be restricted to licensed retailers only. Applicants for a tobacco license will undergo a "fit and proper persons" test, with approval contingent on their background and associa- tions. Those with a concerning history or connections may be denied a license. The government stated that this measure would exclude individuals with criminal affiliations and protect businesses from being undercut by criminal syndicates. A new tobacco regulator will oversee the scheme, ensuring enforcement and compliance with licensing requirements. The regulator will be granted the authority to conduct shop searches and seize illegal products. Additionally, police search powers will be broadened to facilitate faster and more efficient raids on retailers suspect- ed of ties to organized crime. Smoking and Vaping Boom in Gulf Region Despite the rise of vaping, smoking remains firmly entrenched in the Gulf Region, reports Semafor, reflecting a unique and ongoing demand for nicotine in the region. Cigarette consump- tion is stable in Saudi Arabia and increasing in the UAE, according to Euromonitor International. Sales of smokeless tobacco and vapor products are projected to more than triple by 2028, with Saudi Arabia's market set to rival that of Egypt, which is far larger. According to Euromonitor analyst Alexandra Molokova, demand is fueled by a "strong smoking culture" and "relatively lower health awareness," presenting significant "opportunities for the industry" in the Middle East and Africa. Despite a global decline in smoking, cigarette and alcohol sales in the UAE are thriving, driven by tourism. In 2024, cigarette volume growth in the UAE grew by 4.9% with CAGR in 2023-2028 cigarette volume growing by 5%. Euromonitor predicts this growth will accelerate with the opening of the emirate's first casino in 2027. Value growth of vapes and HTP was at 15.2% this year. In Egypt, cigarette volume growth grew by 3.3% with CAGR cigarette volume growing by 3.9%. The recent lifting of a vape ban led the category to grow from a small base, with value growth of vapes and HTP in Egypt at 36%. According to Molokova, local brands are growing across categories, includ- ing cigarettes, pipe tobacco, and e-vapor products.

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