This report examines the main news related to the tobacco industry for the second quarter of 2022. It covers key legislative announcements alongside prevalence surveys, mergers and acquisitions, company strategies, new product launches and other company initiatives. Greater macroeconomic uncertainty affected the industry in the quarter, as a result of rising inflation and the war in Ukraine, while companies continued pursuing their strategic focus on reduced-risk products.
This report comes in PPT.
In July 2022, the New Zealand parliament approved the first draft of the legislation aiming to ban tobacco sales to people born after 1 January 2009 through a gradually rising legal purchasing age. In addition, the proposed bill, expected to be implemented in 2023, would include a reduction of the nicotine content in cigarettes by around 90% and more restricted distribution, with cigarettes to be sold only through specialist tobacco outlets. The legislation has broad cross-party support in the New Zealand parliament, although some critics state that it needs to address the risk of a growing black market. The Malaysian government also presented in July a first reading of a law to ban tobacco sales, including e-cigarettes, to those born after 2007. The proposed legislation will be discussed in the next parliamentary session.
The US Food and Drug Administration (FDA) announced in June that the largest player in e-vapour products JUUL Labs’ brand will no longer be allowed to be present in the US. The ban will apply to the devices and the e-liquid cartridges. The FDA stated that it lacked sufficient data about the toxicological risks of JUUL’s products to continue authorising their sale. The controversial ruling, which follows apparently contradicting moves by the FDA to authorise the sale of competing e-cigarette brands Vuse in May and NJOY in June, is likely to be appealed by JUUL Labs. Industry sources cite the apparent historic popularity of the JUUL brand among teenagers as a possible reason for its ban.
If proposed government legislation is adopted, Canada may become the first country in the world to impose health warnings that are to be displayed on each cigarette stick and cigar from 2023. According to the proposed measure, the health messages should be “memorable, noticeable and impactful”.
Following the model of the legislation proposed in New Zealand, the US government started preparing a law to reduce the authorised nicotine content of cigarettes to make them less addictive and to assist smokers seeking to quit. The proposed rule, expected to be issued in 2023, would need to be subsequently approved by the Food and Drug Administration (FDA), which may delay its implementation by several years.
Passport Tobacco covers the seven major tobacco categories: Cigarettes, Cigars & Cigarillos, Smoking tobacco (made up of Pipe tobacco and RYO tobacco), Smokeless Tobacco (snuff and chewing tobacco), E-Vapour Products (closed and open); Heated Tobacco; and Tobacco Free Oral Nicotine. Smoking paraphernalia such as pipes, rolling papers, lighters or matches, etc., are not included, nor are nicotine replacement therapy (NRT) products, which are part of Euromonitor's Passport Consumer Healthcare database.
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