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US FDA – Tobacco: News
A new U.S. Government Accountability Office (GAO) report calls on the FDA to overhaul its tracking systems to systematically monitor review times for tobacco and e-cigarette applications. Following a massive backlog triggered by over 25 million submissions in recent years, single application reviews averaged 507 days, yet critical data gaps currently prevent the agency from evaluating whether it is meeting its scientific review timelines. The GAO warned that these tracking deficits prolong market uncertainty and hinder enforcement against illegal products, prompting HHS to agree to implement improved monitoring tools across review pathways.
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USA: Cigarette Market
According to Circana data for the 52 weeks ending August 9, 2026, total U.S. convenience store cigarette sales held flat at $50.8 billion, as a 5.3% price increase (averaging $10.24 per unit) completely offset a 5.0% decline in unit volume. Driven by inflation and elevated fuel costs, price-sensitive consumers are increasingly downtrading from premium offerings to discount brands to manage household budgets. While traditional cigarettes still generate the vast majority of c-store revenue, shifting consumer preferences and poly-use are driving momentum toward alternative categories, with modern oral nicotine emerging as the market’s fastest-growing segment.
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USA: Nicotine Pouches
Driven by rapid consumer adoption of nicotine pouches, U.S. convenience store smokeless tobacco sales surged 11.6% to $13.6 billion over the 52-week period (Circana). Spitless tobacco (nicotine pouches) served as the primary growth engine, jumping 24.7% to $7.53 billion and capturing 55.3% of the total category as consumers increasingly favor discreet, spit-free formats. In contrast, legacy categories faced volume erosion, with moist snuff dollar sales dipping 1.0% to $5.95 billion despite price increases, and chewing tobacco revenue falling 11.6% to $138 million.
Read More: USA: Nicotine Pouches
USA: Vapes
Total U.S. convenience store vaping revenue fell 5.1% year-over-year to $6.22 billion (Circana), as a 13.1% contraction in unit volume outweighed a 9.2% price increase. The decline in core vaping products – down 6.6% to $5.94 billion – reflects a consumer channel shift away from tracked c-stores toward specialty vape shops, online outlets, and unmonitored retailers stocking unauthorized flavored disposables. Conversely, the vaping accessories segment surged 42.3% to $287 million, driven by hardware innovations and rising demand for multi-use devices across both nicotine and legal cannabinoid markets.
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UK: Vapes
UK adult smoking rates fell to a record low of 9.8% in 2025 – halving since 2011 – allowing vapers (9.9%) to outnumber traditional smokers in Great Britain for the second consecutive year. According to Office for National Statistics data, 25- to 34-year-olds have overtaken 16- to 24-year-olds as the primary vaping demographic at 16.4%, while smoking among young adults dropped dramatically to 7.2%. Vaping continues to play a central role in smoking cessation, with nearly 74% of ever-smokers successfully quitting and over 20% of ex-smokers using e-cigarettes.
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Tobacco Regulation: Europe
Ireland’s Budget 2027 introduced significant excise duty hikes on tobacco products and e-liquids, pushing the retail price of a standard 20-pack of cigarettes past €20 for the first time following a €1.00 per pack increase effective October 7, 2026. Pro-rata tax increases took effect across all other tobacco categories, including cigars, roll-your-own, and pipe tobacco. Additionally, starting January 1, 2027, duty on both nicotine and non-nicotine e-liquids will rise by €0.20 per milliliter to €0.70/ml. Framed as a public health initiative, the dual tax increases aim to lower overall nicotine consumption and deter youth adoption across both tobacco and vaping markets.
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KT&G: Manufacturing
KT&G has launched full-scale operations at its new manufacturing plant in Pasuruan, East Java, raising its total Indonesian capacity to 35 billion sticks annually and cementing the country as its largest overseas production hub. The facility completes a ₩2.4 trillion ($1.8 billion) expansion program that establishes a five-country global production network (South Korea, Russia, Kazakhstan, Turkey, and Indonesia) to supply local markets and key exports across Europe, Asia and Africa. With total international capacity now reaching 65 billion sticks per year – projected to account for over 60% of total global output by 2028 – KT&G is concluding its major capital expenditure cycle to focus on shareholder returns, including dividends and share buybacks.
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Imperial Brands: FY26 Trading Update
Imperial Brands confirmed in its FY26 pre-close trading update that it remains on track to meet full-year targets, expecting 3% to 5% constant-currency growth in adjusted operating profit and high-single-digit adjusted EPS growth. Core tobacco net revenue grew by low-single digits for the sixth consecutive year, driven by robust pricing power and market share gains in key segments in the U.S. and Germany that offset low-single-digit volume drops. Meanwhile, its Next Generation Products (NGP) segment achieved double-digit revenue growth across vapes, heated tobacco, and modern oral, bolstered by product line expansions and bolt-on acquisitions. Supported by expected free cash flow above £2.2 billion, the company completed its £1.45 billion FY26 buyback and launched a new £1.5 billion share repurchase program for FY27. Over the six-year period from FY21 to FY26, Imperial Brands has returned approximately £13 billion in cumulative capital to shareholders through dividends and share buybacks combined.
Read More: Imperial Brands: FY26 Trading Update
Tobacco Regulation: European Union
A coalition of eight EU member states – including France, the Netherlands, and Spain – has formally urged the European Commission to enact sweeping restrictions on new nicotine products by updating existing tobacco directives. The proposal calls for a total market ban on all new nicotine product releases, an EU-wide flavor ban across existing categories, standardized packaging, and maximum nicotine caps. Additionally, the group seeks explicit authority to ban disposable vapes and nicotine pouches, alongside strict prohibitions on cross-border distance sales and social media marketing to support the target of a smoke-free generation by 2040.
Read More: Tobacco Regulation: European Union
