Tobacco Asia

14 tobaccoasia FRONT PAGE NEWS 卷首新闻 Australia Smoking Rate Hits Record Low Australia's daily smoking rate fell to its lowest level on record, even as illicit tobacco use among smokers has more than doubled, according to the latest National Drug Strategy Household Survey conducted by the Australian Institute of Health and Welfare (AIHW). The survey found that 5.6% of Australians aged 14 and older smoked daily in 2025, down from 8.3% in 2022-23. Among adults aged 18 and over, the daily smoking rate declined to 5.8%, surpassing the federal government's target of reducing smoking below 10% by 2025 and approaching its 2030 goal of 5%. Overall nicotine use also fell from 17.4% to 15.2%. At the same time, the survey highlighted the growing presence of illicit tobacco. Around 34% of current smokers reported purchasing illicit tobacco during the previous year, compared with 16.7% in the 2022-23 survey. More than half of those purchases came from tobacconists, with branded and unbranded illicit products both contributing to the increase. The findings come amid ongoing debate over Australia's tobacco excise policy. Some critics argue that high cigarette prices have encouraged smokers to turn to the illicit market, while public health organizations maintain that strong tobacco control measures—including plain packaging, taxation, advertising restrictions and public education—have contrib- uted to the continued decline in smoking prevalence. They have instead called for stronger enforcement against illegal tobacco and tighter regulation of tobacco retailing. The survey also showed a decline in vaping among young adults aged 18 to 24, with current use falling from 20.6% to 14%. However, researchers noted that some consumers have shifted to other nicotine products, including nicotine pouches and snus. The AIHW survey draws on responses from approxi- mately 17,500 people and serves as Australia's primary source of national data on smoking, vaping, alcohol, and other drug use. Australia Seizes Record Illicit Tobacco Australian authorities seized record quantities of illicit tobacco and vaping products during the 2025-2026 financial year as enforcement agencies expanded their response to a black market increasingly linked to organized crime. The Australian Border Force (ABF) intercepted more than 2.2 billion cigarette sticks and 586.7 metric tons of loose tobacco at the border. Total tobacco seizures reached 2,259.4 metric tons, while authorities stopped more than 13.2 million vaping products, an increase of 112% from the previous financial year. ABF estimated the tobacco detections represented more than A$4.7 billion (US$3.1 billion) in avoided duty. Domestic operations also increased sharply. Investigators seized more than 109.4 million cigarette sticks inside Australia, up 496%, as well as 32.1 metric tons of loose tobacco, an increase of 232%. The government placed the duty value of those domestic tobacco seizures above A$236.6 million (US$155 million). Enforcement teams targeted storage sites, distribution networks, retail outlets, and suspected local manufacturing operations. ABF said international cooperation had become an important part of the strategy. It issued 1,640 referrals to overseas partners, more than triple the previous year's number. Those referrals contributed to foreign seizures totaling 514.9 million cigarettes, 11.9 metric tons of loose tobacco, and 3.1 million vapes before the products could reach Australia. Australia's legal tobacco prices are among the world's highest, while restrictions on vaping have narrowed lawful supply. Officials say criminal groups have exploited the price gap and growing demand, with illicit tobacco profits connected to violence, arson and money laundering. The latest figures show that enforcement capacity is rising, but also underline the scale of a market that continues to attract sophisticated domestic and international networks. JT Buys BREAK and Moro Japan Tobacco (JT) has agreed to acquire the German fine-cut tobacco brands BREAK and Moro from Scandinavian Tobacco Group (STG) for €176 million (US$206 million), strengthening its position in one of Europe's largest roll-your-own markets. The transaction covers the two brands and associated intellectual property. BREAK is the larger of the pair and has developed a significant presence in German fine-cut tobacco, while Moro serves a more focused consumer segment. JT already operates a broad cigarette and rolling-tobacco portfolio in Germany and is expected to integrate the brands into its existing commercial and distribution organization. STG said the divestment would sharpen its focus on cigars, smoking tobacco, and nicotine products that fit its long-term portfolio strategy. BREAK and Moro together represented roughly 4% of STG's 2025 net sales and gross profit and approximately 6% of earnings before interest, tax, depreciation, and amortization. The relatively high earnings contribution helped support the sale price. For JT, the acquisition adds established volume without requiring the slower process of building a new brand. Fine-cut tobacco has retained importance in Germany as some adult consumers seek lower-cost alternatives to factory-made cigarettes. The category also benefits from a well-developed specialist and general retail network. Australia saw record-low smoking, reduced vaping among young adults, and a consumer shift toward nicotine pouches and snus. Credit: Kseniya Korotkaya, Pexels.

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