Eric Gagnon, Vice President of Corporate and Regulatory Affairs at Imperial Tobacco Canada, says that the company's main concern is the lack of consistency in the enforcement of the regulations.
Although we found that 91% of e-cigarette shops offer flavor additives or other seasoning products, only one was found guilty and fined for breaking the law.
In addition, online sales are ubiquitous, allowing anyone, including young people, to order flavored e-cigarettes and have them delivered to their door.
How are markets with flavor bans, other than Canada, implementing policies? What is the current public opinion on flavor bans?
WHO Takes Lead in Lowering Willingness for Tobacco Industry to Transition
In December 2023, the World Health Organization (WHO) urged governments around the world to treat e-cigarettes the same as tobacco and to ban all flavored e-cigarettes. Specific measures included prohibiting the use of flavorings such as menthol.
Many observers believe that this initiative may shake the traditional cigarette companies' focus on smoking alternatives. A major factor that sets new tobacco products apart from traditional cigarettes is taste. A wide range of flavors can simultaneously differentiate the market to its fullest extent to maximize profits.
From a business strategy perspective, as Japan Tobacco (JT) has pointed out in their financial report, flavor can also broaden the profile of target consumers, for example, attracting young adult women who have not previously smoked.
Taking multiple factors into consideration, the prospects of the new tobacco industry will be greatly impacted if flavors are banned.
Trend of Banning Flavored NGP in Europe, 2023
The taste of heated tobacco has also faced increasingly strict regulations in Europe in the past year of 2023. Throughout the year, the shipment growth of IQOS has started to slow down after many years of rapid increase. In early February of 2024, PMI stated in their annual report that the slowdown is mainly due to the EU's ban on flavored heated tobacco, and it is expected that the shipment volume in 2024 will be further affected.
This trend continues to spread until 2024: the Dutch government will no longer allow the sale of flavored e-cigarettes starting from January 1, 2024, only tobacco-flavored e-cigarettes will still be permitted; on January 16, Spain approved a law banning the sale of flavored heated tobacco products.
On February 29th, the Polish government made a resolution to ban the sale of flavored heated tobacco products. Wojciech Konieczny, Deputy Minister of Health in Poland, stated that the legislation is currently being discussed internally and is expected to enter the legislative process soon, with implementation expected to begin in 2025.
The pace at which this wave of flavor bans is expanding shows no signs of slowing down, and it remains to be seen how quickly it will spread across Europe and potentially cover the entire region.
Ban's Ineffective as Black Market Thrives: a Dilemma Filled with Controversy
The Imperial Tobacco Canada company stated that the consequences of the flavor ban in Canada include the proliferation of the black market, leading to the e-cigarette market once again becoming underground, similar to before e-cigarettes were legalized in the country in 2018.
On March 5th, anti-smoking advocates in Oregon gathered outside the state Capitol to call for a ban on the sale of flavored tobacco and other tobacco products, claiming that "flavored tobacco products are the primary reason kids get hooked on tobacco." On the other hand, retailers and convenience stores argued that banning flavored tobacco products would only encourage adults and children to seek out the black market. Attorney representing retailers, Tony Aiello, stated that if flavored tobacco is banned, not only will the black market thrive, but retailers selling e-cigarette products may lose over half of their revenue.
According to a study published in the American Medical Association journal in 2023, despite California implementing a ban on flavored e-cigarettes in December 2022, underage teenagers can still purchase these products online. The success rate of minors purchasing online has even increased by 9% compared to before the ban.
Emil 't Hart, Chairman of the Netherlands Trade Association (Esigbond), has also expressed concerns about the black market, following the precedent of the "unenforceable" California flavored e-cigarette ban.
E-cigarettes flavored with perfume will ultimately find their way into the criminal underworld. There is no age restriction at all. Those interested can still purchase them across borders or online. People might also mix perfumes themselves, which could lead to even more dangerous consequences.
Do Consumers Really Need Flavors?
The main argument of the pro-ban party regarding flavor bans is that "flavors will increase the attractiveness to minors," and they are similar to the appearance of fashionable toy-like packaging; but according to the other side, this argument overlooks the importance of flavors for adult smokers who want to quit smoking.
The Malaysian E-Cigarette Consumers Association expressed to 2FIRSTS in a December 2023 interview that restrictions on e-cigarette flavors are "illogical.
The NGP certainly avoids the various carcinogenic substances produced by traditional tobacco burning. However, if differentiating flavors from cigarettes is not provided on the basis of ensuring nicotine intake, it will be difficult to correct smokers' preference for the "tobacco flavor" in taste from a consumer standpoint. Ultimately, the smoking cessation aid effect will not be achieved.
Association President Tengku Dato Aslahuddin expressed.
2FIRSTS will continue to monitor the attitudes and reactions of regulatory agencies and markets around the world towards the seasoning ban.
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Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn
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