Tobacco Asia

24 tobaccoasia Issue 6, 2025 November / December Phillips stated that the upcoming TPD and the TED will set the di- rection. The Commission seems "pretty against the category" on certain is- sues—he highlighted early pouch tax ideas—but politics are not uniform, and Nordic support for pouches provides a counterbalance. He anticipates the excise tax rules "to go through" numerous negotiations "around rates," driven by the EU's "appetite for tax… because it needs money." Regardless of the final form, he believes there will be a push for the development of con- sistent controls (possibly track-and-trace-like tools) so retailers can identify compliant products. Boboi emphasized how divergent national policies drive gray and black markets. In Denmark, he said, data shows that "80% of the vaping mar- ket is coming from the black market" after restrictions; in the Netherlands, "drug dealers… are selling vapes," upselling other substances. Harmonized, evidence-based rules—with clear distinctions between combustibles and non- combustibles—are, in IEVA's view, the only sustainable way forward. Retail and the need to self-police Asked whether new formats are cannibalizing each other or simply expand- ing choices, Phillips said the answer is "both." Consumers "are multi-using" across pouches, vape, and heated tobacco—and "a lot of them are using com- bustible products" alongside next generation products. The innovation cycle is still early: "We've barely even started," and "there will always be… products that certain consumer segments want." That dynamism comes with a reputational cost if the category doesn't self-regulate. Boboi urged vendors to "take care of innovation" but keep communications focused on adult smokers; Sidebottom bluntly noted that an industry "with millions of cans of nicotine pouches" with youth-oriented designs lacks credibility with the medical community and regulators. Schweinschwaller said tobacconists can be part of the solution: keep new products in-store, perform age checks even when not legally required, and maintain a responsible presence at retail. The case for harm reduction Harm reduction was a recurring theme throughout the hour. Boboi began with the principle—"vaping is harm reduction"—and argued that "the big change will come" when "the medical world" engages with the evidence. However, Phillips offered a pragmatic caution: "The concept of harm reduc- tion is [currently] dead" as a political message in Brussels … "governments are not thinking around harm reduction" but instead focus on how to make the sector "exist" within or alongside tobacco law. That doesn't mean stop, he said: "Gradually things will change," and the industry should "keep banging the drum." Schweinschwaller agreed that the political headwinds are real. When he meets lawmakers, he begins with "I represent 120,000 small family-run businesses," and saves "the word tobacco" for last "because whenever I mention it, [they] flinch." Boboi divided policymakers into three groups: those who are pro-harm reduction, those who are anti-harm reduction (who "don't even want to debate"), and a large middle group for whom the topic is "too controversial." For that middle group—along with clinicians and the pub- lic—more effective approaches might be clearer product oversight, moderate taxes, and strict en- forcement against illegal supply, which could be more convincing than abstract arguments alone. Final takeaways In a quick lightning round, Schweinschwaller's ask was simple: stability so shops can invest, educate, and enforce age checks consistently. Boboi's one- liner to policymakers: "Don't regulate reduced- risk products like cigarettes." He linked that to Europe's goal of reducing smoking prevalence to 5%. Phillips' closing advice was operational: this is a huge opportunity, but one that's volatile. Strat- egy must be based on real-time data on markets and regulations to avoid preventable mistakes. Sidebottom's wrap connected the themes seamlessly. Nicotine pouches "are the future for the category," he said—but industry must "self- police," call out bad actors, and prepare for a US- style dynamic in Europe, where some firms launch after 180 days if filings are strong and authorities delay in responding to submissions. Most importantly, he argued, the sector will need to educate consumers, regulators, and clinicians "about what pouches actually are, what they mean, [and] what the risk profile really is." Only then will TPD3 and the excise directive debates move beyond noise to lasting, workable policies. Combustibles are still king, despite the growing popularity of new nicotine products. Credit: 2happy, CC0. Nicotine pouches are still the smallest sector but also the fastest-growing. Credit:L.V. Olavi Rantala, CC2.0.

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