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Global Tobacco Industry Development Report

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Global Tobacco Industry Development Report

  • 2018-11-14

The global tobacco control movement continued to make its way forward in 2017,the sales amount of traditional tobacco products declined while next generation products such as heated tobacco products rose,which led to a restruction of the industry,the developing strategy diversified a lot,the uncertainty of the industry increased.

1.The tobacco control policy of WHO

The tobacco development report released by WHO in 2017 whose theme is the policy of monitoring and preventing smoking claimed that 2/3 of the population(4.7 billion) in the world are affected by high-level tobacco control policy,which is 3.6 billion more than a decade ago,there are 2.7 billion in the world remain unaffected by such policy.In 2016,among the six main policies,the most popular of them was regulation on smoking and taxation policy while the least of them is public propaganda.From 2014 to 2016,the warning label increased by 100% while the coverage rate of public propaganda fell.The report implied that even tobacco control movement keeps advancing and the consumption of tobacco product dropped in some countries,the amount of smokers in the world will continue to grow due to the increase of population,The WHO once counted up the smoking rate of people over 15 years old in more than 140 countries in 2015.It was concluded that the highest among them is about 40%,countries with a smoking rate of more than 25% included Indonesia,Russia,Greece,Croatia,France,Spanish and Laos,making up 17% of the countries surveyed,countries with a smoking rate of 20%-25% made up 21% of the countries surveyed,countries with a smoking rate of 10%-20% made up 42% of the countries surveyed.In a word,smoking rate in European countries is generally high,most of which is 20% to 30%,smoking rate in African countries is generally low,most of which is lower than 10%,the highest is about 20%.

The theme of World No Tobacco Day is“Tobacco——Threat to Development”,stressing the interrelationship between smoking and sustainable development,inspiring other countries to subsume tobacco control into national campaign in response to《The 2030 Agenda for Sustainable Development》,appealing to the public and partners to widely participate in national and global campaign to control tobacco,working out and implementing development strategy in order to accomplish the goal.

The WHO has actively promoted 《Protocol to Eliminate Illicit Trade In Tobacco Products》.In 2012,the《Framework Convention on Tobacco Control》passed on the fifth conference of the parties,but it will not become effective until more than 40 parties approve or join in it.By the end of 2017,35 parties have already approved the protocol.,the first conference of the parties was held in October 2018.

2.The policy of FDA

Decreasing the volume of nicotine and changing the method of delivering nicotine is the focus of reducing the harm of tobacco product.In 2017,FDA announced a new comprehensive plan aims to lower the volume of nicotine so that it is not so addictive and take into account the influence of flavor and the method of delivering nicotine on human health.This plan implied that FDA may agreed that the way nicotine is delivered can affect the safety of tobacco product,and by way of burning to deliver nicotine is the reason why cigarette is harmful.It also implied that FDA had deepened its understanding of next generation product as low-risk alternative to cigarette.

Besides inspiring manufactures of next generation product,this plan will also have a great effect on tobacco industry,mainly reflected on industrial segment(focus on developing tobacco with a low volume of nicotine) and agricultural segment(focus on developing tobacco leaf with a low volume of nicotine),such progress may lead to a new round of product innovation.Altria Group US claimed it can produce cigarette with a low volume of nicotine,another company claimed that it can reduce the volume of nicotine by 97% at the segment of planting.

Prolong the deadline of declaration of tobacco products,The new regulations unveiled by FDA subsumed electric cigarette and cigar into regulation and requested that tobacco products which were put on sale from February 2007 to August 2016 shall declare and get examined again.In 2017,to encourage the development of innovative product,FDA decided to prolong the deadline of declaration of traditional tobacco product to August 2021 while the declaration of heated tobacco product to August 2022,such prolongation provided more opportunities for innovative product,it is a signal from FDA that it is approve of next generation product.But due to the lack of more specific standard,there remain uncertainties about the development of heated tobacco products.

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