Tobacco Asia

8 tobaccoasia Issue 3, 2026 May / June From the Associate Editor © 2026 October Multimedia Co Ltd. TOBACCO ASIA (ISSN 2773-8701) is published bi-monthly by October Multimedia Co Ltd in January, March, May, July, September, and November. Printing and distribution of TOBACCO ASIA is overseen by October Inter Co. Ltd., Thamatee Building, 159/19 Soi Ramkhamhaeng 110, Ramkhamhaeng Road, Sapansung, Bangkok 10240 THAILAND. E-mail: info@octobermultimedia.com, web: www.tobaccoasia.com, WeChat/WhatsApp: +19178430000 Representation for Tobacco Asia Asia/Middle East/Australasia Southern Europe/Eastern Europe China/Italy/Spain/France October Inter Co. Ltd. Thamatee Building, 159/19 Soi Ramkhamhaeng 110, Ramkhamhaeng Road, Sapansung, Bangkok 10240 Tel +66 812861103. info@octobermultimedia.com WhatsApp/WeChat: +19178430000 The Americas/Benelux/UK Germany/Scandinavia Switzerland/Austria Cardinal Media LLC 2 Glenfield, Barrington RI 02806 United States Contact: Emerson Leonard Tel +1 917 680 1050 edl@octobermultimedia.com Printing/Distribution overseen by: October Inter Co. Ltd. Published by: October Multimedia Co., Ltd. Printed in Thailand © 2026 October Multimedia Co., Ltd. All rights reserved. Bylined or initialed articles represent the opinion of the author. All articles published in Tobacco Asia or www.tobaccoasia.com are copyrighted. No part of this publication may be reproduced or in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system without written permission. Subscriptions to TOBACCO ASIA magazine Subscription Rates: 1 Year – US$75.00 2 Years – US$145.00 3 Years – US$210.00 For inquiries, contact: malisa@tobaccoasia.com Secure online payment: https://www.tobaccoasia.com/subscribe Nattira Medvedeva Associate Editor "Insanity is doing the same thing over and over again and expecting different results." The line often gets attributed to Albert Einstein, whether or not he actually said it. Either way, it captures the current state of global tobacco and nicotine policy to a T. We're seeing that dynamic play out in real time. Policymakers contin- ue to lean on blunt instruments—bans, prohibitions, and ever-higher taxes—while expecting different results. And, as we've seen again and again, they rarely get them. Instead, they create unintended consequences that undermine public health goals, distort markets, and fuel illicit trade. When regulation ignores consumer behavior and economic reality, it rarely delivers. Australia offers one of the clearest cautionary tales (see our story on p.20). For years, the country has pursued an aggressive strategy built on steep tax increases and tight restrictions. This has driven legal cigarette prices to some of the highest levels globally while opening the door to a thriving illicit market. Criminal networks have stepped in to supply cheaper, unregulated products to consumers. The government loses revenue, legitimate retailers lose business, and authorities lose visibility into what people actually use. That outcome should not surprise anyone who understands basic market dynamics; when legal prod- ucts become inaccessible or unaffordable, demand does not disappear—it shifts. Consumers will seek alternatives. Markets that impose bans on vapes, nicotine pouches, or HTP often see similar dynamics. Remove regulated options, and unregulated ones emerge. These products exist because they respond to evolving consumer preferences. When regulators remove them from the legal framework, demand simply moves elsewhere. Europe now faces a pivotal moment where it can either learn from these outcomes or repeat them. The ongoing debate around the region's future tobacco and nicotine policy framework highlights a clear divide (see p.26). On one side are proposals that apply broad restrictions across product categories. On the other is a push for more differentiated, science-based frameworks that recognize the varying characteristics of combustible and non-combustible products. The European debate also underscores the need to balance public health with economic and opera- tional realities. Policymakers who overlook this risk designing frameworks that prove difficult to imple- ment in practice—something Australia's experience illustrates clearly. In contrast, China's latest five-year plan points to a more measured approach. It emphasizes long- term planning, gradual implementation, and coordination across sectors (more details on p.30). By integrating public health objectives with industrial policy, regulatory oversight, and market realities, it reflects an understanding that complex systems require structured, sustained management—not shock therapy. Effective tobacco control depends less on how forcefully supply gets restricted and more on how intelligently behavior gets shaped within a regulated framework. None of this argues against regulation. The industry operates best within clear and evidence-based frameworks. But those frameworks must align with real-world behavior. They must preserve legal path- ways that enable the market to compete with illicit supply, differentiate between product categories, and evolve with data, not ideology. Continuing to rely on bans and extreme taxation as primary tools—despite mounting evidence of their limitations—does not demonstrate progress. It demonstrates repetition. And if that definition of insanity holds true, it helps explain why so many policies continue to miss their mark.

• Cover