Global E-Cigarette Regulatory Updates and Market Trends Nov 29th.
Key Developments:
1. Malaysia: Challenges in Enforcing a Nationwide Vape Ban
Malaysia’s Health Minister announced that a comprehensive nationwide vape ban is difficult to implement. Instead, states have the autonomy to create their own policies. Johor State, which has prohibited the sale of vape products in commercial establishments since 2016, serves as a potential model for other states.
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2. New York City: Proposal to Ban Disposable Vapes
A New York City council member has proposed a bill to ban disposable vapes, citing public health concerns. If passed, fines for non-compliance could reach up to $5,000.
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3. Poland: New Tobacco Tax Law Signed
Poland’s President signed a new tobacco tax law, which will increase tobacco prices annually from 2025 to 2027. E-liquid taxes will rise to approximately $0.40 per milliliter. While this measure aims to boost government revenue, it may also fuel illicit tobacco trade.
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4. Spain: New Tobacco Legislation Drafted
Spain’s Ministry of Health has unveiled a draft Royal Decree to regulate nicotine pouches and vapes. The legislation proposes standardized packaging, restrictions on flavor additives, and further limitations on tobacco product usage.
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5. South Korea: Calls for Synthetic Nicotine Regulation
Several organizations gathered outside the National Assembly in South Korea, urging the government to pass a law regulating synthetic nicotine vapes.
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Industry News:
Philippines: $80 Million in Illegal Vapes Seized
The Philippines’ Bureau of Customs has seized over $80 million worth of illicit vape products in the past ten months. The agency plans to enhance its enforcement capacity through collaboration with tax and trade departments.
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US: E-Cigarette Sales Surge
A report reveals that US e-cigarette sales increased by 47% from 2019 to 2023. Disposable vapes experienced a 500% growth, with flavored vapes being especially popular.
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Philip Morris International Expands Investments in Smokeless Products
PMI is optimistic about the smokeless tobacco market and plans to increase investments in Serbia to develop cigarette alternatives.
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Market Insights:
China: October Vape Exports Hit $888 Million
China’s October vape exports reached $888 million, with emerging markets in Asia and Africa driving demand. Indonesia saw over 300% year-on-year growth. The top five markets were the US, UK, South Korea, Germany, and Malaysia, while Poland dropped out of the top ten.
France: Smoking Declines, Vaping on the Rise
The proportion of daily smokers in France has hit a 15-year low at 23%. Meanwhile, the daily vaping population has risen to 6%.
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New Zealand: Vaping Surpasses Smoking
Daily vaping rates in New Zealand have increased to 11.1%, equating to 480,000 users. Smoking rates have dropped to 6.9%, with vaping among young people surpassing smoking for the first time.
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Legal Challenges:
PMI Subsidiary Faces Lawsuit Over Nicotine Pouches
Philip Morris subsidiary Swedish Match faces a $5 million class-action lawsuit in the US over alleged monopolistic practices in the nicotine pouch market. Swedish Match currently holds an 80% market share.
Stay tuned for more updates on global vape regulations and market trends!