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Southeast Asia: Tobacco Market
Indonesia is preparing to enact a major regulatory overhaul of its tobacco market – including tar and nicotine caps, flavor bans, and strict advertising controls – to curb youth smoking and protect public health. The proposed rules face fierce opposition from major manufacturers and trade groups, who warn of severe job losses and market disruption, particularly to traditional clove cigarettes (kretek). Despite this pushback, health authorities view the intervention as essential in the world’s largest cigarette market outside China.
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Japan: Heated Tobacco Market
Japan Tobacco (JT) has applied for a ¥40 per pack price increase across its entire Ploom heated tobacco stick lineup, effective October 1, 2026. Driven by government tax revisions aimed at closing the tax gap between heated tobacco and conventional cigarettes, this marks JT’s second price hike in 2026, bringing the total cumulative increase to ¥70 per pack. The adjustment is expected to temper category growth and hit price-sensitive consumers in the value segment hardest.
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USA: Tobacco Regulation – States
Indiana’s Senate Enrolled Act 185 has taken effect, banning the sale of vaping products manufactured in designated foreign adversaries like China and forcing local retailers to overhaul their supply chains. Retailers must now audit inventories and verify manufacturing origins or face severe penalties, including fines up to $10,000 per violation and the revocation of sales certificates. Following Texas as the second state to enact such a ban, Indiana reinforces a growing U.S. trend toward origin-focused vape regulation.
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ZYN USA
Philip Morris International (PMI) is launching a major U.S. counter-offensive to defend its market-leading ZYN nicotine pouch brand following market share erosion. To reclaim lost ground, PMI is expanding its lineup with higher-strength moist ZYN ULTRA as well as new flavor and strength offerings for ZYN (Dry), all backed by the “When It Clicks” campaign. Reinforcing this push is ZYN’s exclusive status as the only nicotine pouch with FDA Modified Risk Tobacco Product (MRTP) authorization, giving PMI a distinct regulatory edge over its rivals.
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Tobacco Industry: Acquisitions
Scandinavian Tobacco Group (STG) has agreed to sell its fine-cut tobacco brands, BREAK and Moro, to Japan Tobacco (JT) for €176 million. The divestment aligns with STG’s Focus2030 strategy, allowing the company to lower its debt and redirect resources toward higher-value growth categories. Expected to close before year-end pending regulatory approval, the deal also includes a three-year contract manufacturing agreement during the transition.
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Philip Morris International (PMI): Q2 2026 Results
Philip Morris International (PMI) delivered record Q2 2026 results, with net revenue surging 10.4% to top $11 billion for the first time and adjusted EPS rising 15.2% to $2.20. Global performance was propelled by continued expansion in IQOS heated tobacco and VEEV e-vapor, alongside resilient cigarette shipments (+1.1%) and strong pricing. Meanwhile, U.S. ZYN performance has stabilized, with shipment volumes ticking up 1.8% to 2.9 billion pouches.
Read More: Philip Morris International (PMI): Q2 2026 Results
Tobacco Regulation: Europe
The Spanish government has approved draft legislation that would expand its smoke-free rules to outdoor bar and restaurant terraces, while bringing vaping and heated tobacco products under the same regulations as conventional cigarettes. The proposal also prohibits smoking and vaping near public building entrances, schools, and outdoor sports venues. Currently awaiting parliamentary approval, the bill faces pushback from opposition politicians seeking designated smoking zones to protect the hospitality sector.
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Tobacco Regulation: European Union
Revisions to the EU’s Tobacco Taxation and Tobacco Products Directives have plunged into gridlock after the European Parliament overwhelmingly rejected the proposed tax framework. The vote highlights a deep rift between prohibition-leaning nations and harm-reduction champions over how to tax and regulate emerging nicotine products. With prohibition-leaning Ireland currently holding the EU Council Presidency, meaningful progress on the stalled frameworks is unlikely until at least 2027.
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ALP Nicotine Pouches
ALP has launched its first international expansion into the UK and EU in July 2026. Following rapid growth in the U.S., the brand opened European online sales with plans to establish presence in 11 countries by 2030. The European rollout features an eight-flavor product line – including four European-specific variants – and is supported by high-profile marketing deals, including a global partnership with UFC fighter Conor McGregor.
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Research: E-cigarettes
A recent study shows that synthetic cooling agents (such as WS-3 and WS-23) in e-cigarettes act as active pharmacological modulators rather than simple sensory additives. Widely used by manufacturers to reduce throat harshness and bypass flavor bans, these coolants work synergistically with nicotine to significantly amplify mesolimbic dopamine release and heighten behavioral reinforcement. By proving that synthetic coolants directly increase nicotine’s reward signal and addiction potential independently of flavor, the research exposes “iced” vaping products to heightened regulatory scrutiny and potential bans on sensory additives.
Read More: Research: E-cigarettes
