Global Vape Regulations:Since last year, numerous countries worldwide have implemented new changes to regulations governing traditional tobacco products and novel tobacco products like e-cigarettes. Global tobacco regulation showcases diverse models, with some policies creating opportunities for business development while others pose challenges for tobacco companies adapting to the market environment.

Europe Vape Regulations: Flavor Restrictions & Disposable Vape Bans

Several European countries introduced multiple restrictive measures last year, impacting both the cigarette and e-cigarette markets. Belgium, France, and Poland banned the sale of disposable vapes. Countries like Latvia and Slovenia restricted e-liquid flavors, permitting only tobacco and menthol flavors. These vape regulations aim to reduce the appeal of e-cigarettes to minors but may also affect adult consumer groups. Disposable vapes gained popularity due to their convenience, and flavor restrictions could diminish their attractiveness to some consumers.

The UK introduced a disposable vape ban. Vape companies argue this ban might push consumers back to cigarettes or increase the illicit market. The disposable vape market is a rapidly growing sector, proven popular not only among younger users but also among consumers switching from cigarettes to novel tobacco products.

These European regulatory moves reflect authorities’ attempts to balance protecting consumer interests with restricting consumer access to tobacco products.

Australia Vape Regulations: Prescription Model Faces Black Market Challenge

Australia required a doctor’s prescription to purchase vape products, though this restrictive model has recently been eased. The law mandates that all vape products, regardless of nicotine content, can only be sold through pharmacies. Vapes with higher nicotine concentrations require a prescription. Tobacco retailers and convenience stores are banned from selling any type of vape product.

Under Australian vape regulations, starting October 1, 2024, adults aged 18 and over can purchase vapes with a nicotine concentration of 20 mg/mL at pharmacies. Before purchasing, consumers must consult a pharmacist regarding product selection and dosage guidance. Additionally, consumers must show proof of age and are limited to purchasing a set quantity per month.

Australian law restricts vape flavors to mint, menthol, or tobacco and mandates plain packaging to reduce consumer appeal.

Despite legislative efforts to prevent youth access to vaping, Australia faces a severe black market challenge. It’s estimated that around A$1.9 billion (A$1 ≈ ¥4.68) worth of illicit tobacco products circulate on the black market annually. Some industry stakeholders believe Australia’s regulatory approach not only stifles the legal market and harms consumers but also leads to tax revenue losses.

North America Vape Regulations: Flavor Limits & Marketing Challenges

Canada restricts e-cigarette flavors, permitting only tobacco, mint, and menthol flavors. While these vape regulations aim to reduce youth appeal, they also impact adult vape users. Flavor variety is a key characteristic and attraction of e-cigarettes.

The U.S. Food and Drug Administration (FDA) proposed banning menthol cigarettes in the US, sparking complex debate. US tobacco companies argue this ban would adversely affect legal sales, regulatory fairness, and economic prospects. As menthol cigarettes account for roughly one-third of the US cigarette market, this proposal could cause significant market shifts with far-reaching impacts on manufacturers and retailers.

US tobacco companies contend that removing menthol cigarettes from the legal market could inadvertently fuel black market trade. Smuggling and counterfeit products might increase, posing challenges for law enforcement and potentially causing tax losses for states reliant on tobacco excise taxes. Increased illicit trade could complicate tobacco regulation and raise concerns about product safety and compliance.

Concerns also exist that implementing a menthol ban could strain relations between tobacco retailers and regulators. Retailers, especially in areas with high menthol demand, argue such restrictions could harm legitimate businesses without achieving the intended outcome. Furthermore, the menthol ban raises concerns about consumer autonomy, as menthol cigarettes, deeply entrenched in the US market, are a preferred choice for many adult smokers.

Asia Vape Regulations: Economic Factors Influence Regulatory Decisions

In Asia, tobacco markets significantly impact economic development in many countries, and regulatory decisions often weigh tobacco’s economic benefits. Countries like Japan and South Korea have embraced heated tobacco products (HTPs), whose popularity has contributed to declining cigarette consumption.

Indonesia implemented stricter tobacco vape regulations, particularly focused on e-cigarettes, to address rising consumption and youth smoking issues. Indonesia prohibits the sale of e-cigarettes to individuals under 21 and pregnant women, raising the minimum purchase age from 18. Sales within 200 meters of schools or via online platforms without age verification are also restricted. For traditional cigarettes, Indonesia banned single-stick sales, requiring all cigarettes to be sold in packs of 20, aiming to deter youth access and ensure clear warning labels.

Indonesia’s vape restrictions include limits on the maximum nicotine content in e-liquids and strict packaging standards, mandating that 50% of the packaging display health warnings. The country bans e-cigarette and cigarette advertising on social media, and physical advertising near schools and public places is restricted. Studies indicate a recent rise in youth e-cigarette use in Indonesia. The government is actively responding to high tobacco use rates, particularly among youth.

India imposed a comprehensive ban on e-cigarettes but faces enforcement challenges due to a thriving illicit vape trade. India’s situation highlights the difficulties of an outright ban, suggesting that science-based regulation and taxation might be more effective.

In June 2024, the Philippines introduced stricter vape regulations, marking a significant shift in controlling these products. Under rules from the Department of Trade and Industry (DTI), all vapes and HTPs must undergo a certification process to obtain the PSI mark (Philippine Standard mark) and ICC (Import Commodity Clearance) label, ensuring products meet quality and safety standards before consumer sale. Businesses have a 6-month grace period to adjust inventories, with full enforcement of certification requirements starting January 2025.

For tobacco companies, these varied global regulatory changes present both challenges and opportunities. Companies are adapting to the evolving landscape through product diversification and focusing on less restricted areas. The tobacco industry’s economic significance remains substantial in both emerging and mature economies. The success of policies depends on balancing consumer needs, economic development, and public health considerations. Some stakeholders advocate for collaborative frameworks involving businesses and regulators, focusing on consumer choice rather than simplistic prohibition.