2022 is over, and the impact of the epidemic is gradually disappearing. Looking back on the past year, the international tobacco industry has faced pressure and challenges and moved forward against the wind. Multinational tobacco companies are still promoting sustainable development; in 2023, global tobacco leaf production may increase; new types of tobacco(Heated tabak) continue to play an important role.

Global Market

How does the international tobacco retail industry deal with pressure and challenges?

“Tobacco Business” interviewed several tobacco retailers. They think that it is very important for tobacco retail stores to have more diversified products; stick to their own purchase principles, establish good relationships with some tobacco retailers, and share information with each other. Look for opportunities to provide consumers with some innovative products; establish good relationships with upstream companies in the supply chain, develop a customer loyalty incentive plan, and encourage every consumer to become a repeat customer; stay alert, the industry is changing rapidly, so you must be able to break the rules and innovate Sexual thinking.

Asian cigarette market size may reach 643.5 billion US dollars in 2026

According to market research firm Research and Markets, the Asian cigarette market will reach US$643.5 billion in 2026, and will grow at a compound annual growth rate of 5.61% from 2022 to 2026. The main factors driving the growth of the cigarette market in Asia include the growing young population and the increase in female smokers. In addition, inflation and the growth of national income have driven up the price of cigarettes, thereby pushing up the market value of cigarettes. However, the growth of the cigarette market in Asia will face challenges such as the illegal cigarette trade, the growth of the market for new tobacco products(Heat not burn tobacco heatsticks), and the reduction in the number of smokers.

Russia, Belarus and Indonesia plan to raise cigarette prices in 2023

The Russian Ministry of Agriculture has calculated the minimum retail price of a pack of cigarettes in 2023 at 117 rubles. According to the Ministry, the calculation is carried out on the basis of the minimum value of the excise tax rate per unit of consumer packaging (package) of tobacco products established by the tax code of the Russian Federation from January 1, 2023, the value-added tax rate and the increment coefficient. The Belarusian legislature is currently considering a draft amendment to the tax code, which plans to double the price of cigarettes by 2023. The Indonesian government plans to increase the tobacco excise tax rate on roll-your-own cigarettes by 10% in 2023 and 2024, capped at a maximum annual increase of 5%.

New Tobacco

Japan plans to raise taxes on heated cigarettes

The Japanese government recently proposed a tax increase plan of 1 trillion yen. In terms of tobacco tax, Japan plans to gradually increase the tax on heated cigarettes(heated tobacco heatsticks) within 5 years. In the first year, a tax of 1 yen will be added to each heated cigarette, and the tax will be increased by 0.5 yen per year for the next 4 years. Cigarettes add a total tax of 3 yen. It is estimated that by 2027, the total tax revenue of heated cigarettes in Japan will exceed 100 billion yen.

The third edition of the global state of tobacco harm reduction

Given the dire smoking situation in the world, the third edition of the Global State of Tobacco Harm Reduction (GSTHR) outlines a clear framework for safer nicotine replacement products. The History Right report highlights the determination to quit smoking as more than 100 million consumers using alternative nicotine delivery systems (from e-cigarettes to snus) are determined. However, the report, while corroborated by undeniable data obtained by scientific research, does not reflect the current views of most public health authorities and politicians.

UK smoking levels hit record low, new tobacco plays a big role

The latest ONS figures show that the smoking rate in the UK is now at 13.3%, the lowest level on record. The ONS report believes that new tobacco products such as e-cigarettes have played an important role in the decline in smoking rates in the UK. Heated cigarettes are currently favored by consumers in the UK market. In 2021, the British heated cigarette market will increase by 86% year-on-year. Retailers who sell products in this category reap handsome profits.

Tobacco and Law

India to launch GPS-based tobacco control app

The Indian Tobacco Control Group recently stated that it will launch a GPS-based tobacco control app. India already has regulations banning smoking in public places. Citizens can use the app to complain about smoking in public places, just upload photos of smokers in public places, and tobacco control staff will punish violators.

New Zealand issues lifetime tobacco ban

On December 13, local time, the New Zealand government issued a new law prohibiting the sale of tobacco to people born after 2009 (inclusive), which is also the world’s first lifetime tobacco ban targeting the younger generation. As well as restricting the smoking age, New Zealand will drastically reduce the nicotine content of cigarettes and force cigarettes to be sold only through specialist tobacco shops. But these regulations only target tobacco products, and e-cigarettes are still legal for now.

U.S. court rejects rule to print warnings on cigarette packs

A U.S. court recently rejected a U.S. Food and Drug Administration (FDA) proposal to print warning graphics on cigarette packages. The controversial rule, proposed by the U.S. FDA in March 2020, would require cigarette manufacturers to print warning graphics on the front and back of cigarette packs.