53 pages, Aug 2015
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All but uniquely among fmcg industries, tobacco legislation is not simply a guiding element or a means of enforcing consumer standards but a central determining factor in the performance of tobacco markets. As the cumulative de-normalising impact of regulation and taxation drives down smoking prevalence worldwide, regulators are looking to the margins, towards next generation measures that impair the revenue-generating capacity of manufacturers and further restrict access to tobacco products.
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With much emerging tobacco regulation aimed at impairing the ability of tobacco companies to innovate and thereby engage consumers, the concept of flavour bans is gaining traction. While Brazil and Chile have stuttered in their efforts to introduce bans, the EU TPD and some Canadian provinces are set to prohibit the use of “characterising flavourings” including menthol.
The longer that Australia remains the sole market to have introduced standardised packaging for tobacco products, the greater hope for the tobacco industry of having contained a potentially damaging measure. This hope received a blow with the decision of both the UK and Irish governments to press ahead with legislation, with others planning to follow suit.
Significant new laws to be rolled out EU-wide, banning flavoured cigarettes, tightening pack regulations and encompassing e-cigarettes for the first time, will have an impact on overall sales. Due for implementation from 2016 onwards, the rules face legal challenges from industry and member states.
As the single largest e-cigarettes market, the nature of FDA regulation there will be crucial in determining the future of the category not just of the US market but worldwide. Final proposed regulations are expected imminently as industry and public health battle to shape the outcome.
A May 2013 edition of the Tobacco Control journal served up a series of “blue sky” measures aimed at bringing about the “end of tobacco”. While many appear far-fetched or riven with potential complications, some are increasingly seriously discussed by tobacco controllers and their time may be coming.
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.