Tobacco Asia

26 tobaccoasia Issue 1, 2025 January / February Staff Report While much of the world is making strides to curb tobacco consump- tion through regulations and public health campaigns, China's tobac- co industry is thriving, showing resilience in the face of global trends. The country's growing market is largely driven by the state-owned China National Tobacco Corporation (CNTC), the world's largest tobacco company. The booming industry, coupled with innovative trends in e-cigarettes and tobacco products, is a significant force in the Chinese economy. A growing market China's tobacco market is expanding rapidly, despite the ongoing global push to reduce tobacco consumption. The country is home to more than 300 million smokers, making up nearly 30% of the global smoking population. In a world where smoking rates are declining, particularly in Western countries, China has seen a rise in both the consumption and production of tobacco products. In fact, CNTC continues to dominate the global market, accounting for over 40% of the world's cigarette production. In 2023, China produced a staggering 2.4 trillion cigarettes, continuing a five-year upward trend and showing a 35% increase from 2003, as reported by the National Bureau of Statistics. Accord- ing to Euromonitor, China's share of global tobacco sales grew to approximately 47% last year, up from just under 38% in 2009, reflect- ing consistent patterns observed in other tobacco-related research. The World Health Organization also projects a slower-than-global- average decline in tobacco use among those over 15, with the rate expected to drop by about four percentage points from 2000 to 2025, excluding e-cigarettes. China's Tobacco Biz Booming; Defies Global Trends China's tobacco market continues to thrive. Credit: Bruce Mars, Pexels. Vaping has become a lifestyle choice for many Chinese consumers. Credit: Bimbim Sindu, Pexels. Part of this growth can be attributed to the increasing affordability and accessibility of to- bacco products. While other nations struggle with higher taxes, health warnings, and smoking bans, China's market remains more relaxed, with fewer restrictions and regulations on the sale and use of tobacco. As a result, tobacco has remained a staple in Chinese society, often associated with status and social interaction. Tobacco's economic impact The economic importance of the tobacco industry in China cannot be overstated. It is a significant contributor to the country's tax revenues, employ- ment, and overall GDP. CNTC alone generates billions in taxes annually, funding various public services. For example, in 2023, CNTC contributed RMB1.5 trillion (US$206 billion) in tax revenue, accounting for roughly 7% of the central govern- ment's total income. Additionally, the tobacco sector provides jobs to millions of people, from farmers who grow tobacco to workers in manufacturing plants and retail. CNTC, alongside its regulatory body, the State Tobacco Monopoly Administration (STMA), employs more than half a million people, based on 2016 data. This makes the tobacco in- dustry an integral part of China's economic land- scape, with few rival industries in terms of revenue and employment. Rising e-cigarette and vaping trends Another factor contributing to the boom in Chi- na's tobacco industry is the rise of e-cigarettes and vaping products. While vaping is often considered

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