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Most of the regulations that came out in 2024 were related to vapes. Photo credit: Olena Bohovyk, Pexels.
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The US’ proposed menthol ban continues to be contentious. Photo credit: Wil540 Creative Commons 4.0
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The success of new regulations will depend on approaches that take into account consumer demand, industry contributions, and public health outcomes. Photo credit: Andrew Vargas, CC2.0.
As countries worldwide continue to introduce regulations impacting both traditional tobacco and alternative products like e-cigarettes, 2024 has been a year of particularly consequential changes. While public health considerations often allegedly drive these regulations, the reality is that the economic and consumer interests within the tobacco industry are equally significant. Global markets are showing distinct patterns in tobacco and vaping regulation, with certain policies offering opportunities for growth while others challenge the industry’s adaptability.
Europe: mixed approaches to flavor restrictions and disposable bans
In 2024, European countries introduced several notable restrictions that impact the market for both cigarettes and e-cigarettes. Belgium, France, and Poland are set to impose bans on disposable vapes, while countries such as Latvia and Slovenia opted to limit e-liquid flavors, allowing only tobacco and menthol. These policies aim to reduce underage appeal but are likely to impact the adult consumer base as well. Disposable devices are popular among adult users for their convenience, and flavor limitations could reduce the appeal for adults looking to quit traditional cigarettes with more palatable vaping options.
In the UK, a ban on disposable vapes is scheduled to take effect in June 2025, driven by concerns about youth access and environmental waste. However, vape industry advocates argue this ban may push consumers back toward combustible cigarettes or lead to a rise in unregulated products. The disposable vape market, a fast-growing sector, has proven to be popular not only with younger users but also with long-time smokers transitioning away from traditional products.
These regulatory moves in Europe highlight the delicate balance between protecting consumers and restricting access to products that could serve as a viable alternative to smoking. Industry experts suggest that policies like these may inadvertently stymie progress in smoking cessation and drive consumers back toward the black market.
Australia’s prescription model and black market challenges
Australia’s restrictive model with its requirement that e-cigarette users must have a doctor’s prescription to obtain nicotine vaping products loosened up a bit this year. As of July 1, Australian law mandates that all vaping products, whether or not they contain nicotine, can only be sold through pharmacies, specifically for smoking cessation or managing nicotine dependency. This policy excludes single-use disposable vapes, which are not available even in pharmacies. Businesses like tobacconists, vape shops, and convenience stores are barred from selling any type of vaping product.
Starting October 1, 2024, adults aged 18 and over can purchase vapes with a nicotine concentration of up to 20 mg/mL at participating pharmacies, as permitted by state and territory regulations. Before making a purchase, customers are required to consult with the pharmacist. This consultation covers product options, dosage guidance, alternative methods for quitting smoking, and nicotine dependence management. Additionally, proof of age must be shown, and customers are limited to buying a one-month supply per month.
Pharmacists are not required to dispense therapeutic vapes, and individuals under 18 must have a prescription to access these products. Higher nicotine concentrations also require a prescription, regardless of age. The law further restricts flavors to mint, menthol, and tobacco, and mandates plain packaging to reduce product appeal.
While intended to prevent youth access, the law has also contributed to a thriving black market for nicotine e-liquids. This underground market has grown considerably, with an estimated A$1.9 billion in untaxed, illicit tobacco products circulating annually. Many industry stakeholders argue that this regulatory approach not only limits market opportunities but also fosters a loss of tax revenue and endangers consumers who turn to unregulated products.
Australia’s stringent policies have led some observers to question whether the benefits of this restrictive approach outweigh the drawbacks, especially given the demand for safer alternatives among adult smokers. The black market continues to provide an alternative, underscoring the difficulties inherent in a prohibition-focused model for nicotine regulation.
North America: flavors and marketing challenges
In Canada, 2024 saw an expansion of flavor restrictions, limiting e-liquids to tobacco, menthol, and mint flavors. While Canada aims to reduce youth appeal, these policies also affect adult vapers who rely on a variety of flavors to transition away from traditional tobacco products. Flavors have long been a cornerstone of the e-cigarette industry, attracting adult consumers who seek alternatives to combustible cigarettes. The potential loss of flavor options has raised questions about consumer choice and the effectiveness of these policies in deterring smoking.
The Food and Drug Administration’s (FDA) proposed menthol cigarette ban in the United States has generated a complex discussion, especially within the tobacco industry and among trade advocates who question its potential impact on legitimate commerce, regulatory fairness, and the broader economic landscape. As menthol products comprise a significant portion of the cigarette market—accounting for roughly one-third of all cigarette sales—the proposed ban could create notable market shifts, with far-reaching effects on both manufacturers and retailers.
Industry advocates argue that removing menthol cigarettes from the legal market could unintentionally fuel a black market, similar to what has been seen in jurisdictions where flavored tobacco bans have led to illicit sales. Smuggling and counterfeit products could increase, posing challenges for enforcement agencies and potentially resulting in tax revenue losses for state and local governments reliant on tobacco excise taxes. This underground market might also complicate efforts to monitor and regulate tobacco products effectively, raising concerns about product safety and compliance.
There’s also a concern that enforcement of a menthol ban might strain relationships between tobacco retailers and regulatory bodies. Retailers, especially those in areas with high menthol demand, argue that such restrictions could undercut legitimate business without necessarily achieving the intended public health benefits. Additionally, there are considerations about consumer autonomy, as menthol cigarettes have a longstanding history in the market and represent a preference for many adult smokers.
Asia: the economic influence on regulatory decisions
In Asia, where several countries have substantial stakes in the tobacco market, regulatory decisions often reflect the economic benefits tobacco brings. Countries like Japan and South Korea have embraced heated tobacco products (HTP), and their widespread availability has led to reduced cigarette consumption. Meanwhile, China, home to the world’s largest tobacco industry, is navigating regulatory challenges as it attempts to balance public health objectives with economic growth. China’s regulatory moves in 2024 include tighter restrictions on e-cigarette marketing and manufacturing, aimed at consolidating the market and ensuring product quality, though critics warn of reduced innovation and competition.
Indonesia implemented more stringent tobacco regulations in 2024 to address rising tobacco consumption and youth smoking, with a particular focus on e-cigarettes. Under the new rules, e-cigarette sales to individuals under 21 and pregnant women are prohibited, marking a rise in the minimum purchase age from 18 to 21. Additionally, sales within 200 meters of schools or through online platforms without age verification are restricted. For traditional cigarettes, the sale of single sticks is banned, requiring all cigarettes to be sold in packs of 20, aiming to discourage youth access and ensure clear health warnings on packaging.
E-cigarette restrictions include maximum nicotine limits in vape liquids and stringent packaging standards mandating health warnings on 50% of the package surface. Social media advertisements for e-cigarettes and traditional cigarettes are now banned, and in-person advertising is restricted near schools and public spaces. These steps align with Indonesia’s 2023 Health Law and reflect the government’s response to high tobacco usage rates, particularly among youth, as studies indicate an increase in e-cigarette use among teenagers. Enforcement of smoke-free zones in public areas and offering cessation support aim to further curb tobacco’s impact on health.
India, which banned e-cigarettes entirely in 2019, continues to see challenges with enforcement, as a black market for vaping products remains active. India’s experience demonstrates the challenges of outright bans, especially in markets where consumer demand continues to drive underground sales. The tobacco industry sees India’s ongoing black market as evidence that controlled access and taxation could be a more effective solution than prohibition.
In June 2024, the Philippines introduced stricter regulations for vaping products, marking a significant shift in its approach to controlling these products. Under new Department of Trade and Industry (DTI) rules, all vape products, including e-cigarettes and HTP items, must undergo a certification process to receive the Philippine Standard (PS) mark and Import Commodity Clearance (ICC) sticker, ensuring that all items meet quality and safety standards before reaching consumers. To facilitate the transition, businesses are allowed a six-month grace period to adjust inventory, with enforcement of full compliance starting in January 2025.
Striking a balance for the future of tobacco and vaping
For the tobacco industry, these regulatory shifts present both challenges and opportunities. As governments worldwide attempt to find the right balance between control and access, companies are adapting to changing market conditions by diversifying products and focusing on markets with less restrictive policies. The economic significance of tobacco—both traditional and alternative products—remains strong, and policymakers face the challenge of developing regulations that address public health concerns without stifling industry innovation or driving consumers to illicit products.
In emerging markets and established economies alike, the success of these policies will depend on nuanced approaches that take into account consumer demand, industry contributions, and public health outcomes. Some stakeholders believe the best way forward lies in cooperative frameworks that involve both industry and regulators, focusing on harm reduction and consumer choice rather than prohibitive measures.