Tobacco Industry Highlights: July 4 – July 10, 2026

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Tobacco Regulation: United Kingdom

The UK government and devolved administrations have launched a 12-week public consultation on stricter regulations for tobacco and vaping products to curb youth nicotine addiction. Key proposals include introducing plain white packaging and restricting flavors, colors, and retail displays for vapes, alongside expanding standardized packaging rules for tobacco. Backed by public health advocates, these measures will be finalized after evaluating feedback, with no immediate legal changes taking effect.

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USA: Tobacco Regulation – States

Hawaii has enacted two major laws aimed at curbing youth nicotine addiction and reducing environmental waste. Starting January 1, 2027, Act 189 will completely ban single-use disposable vapes, which have been linked to landfill fires and pollution across the state. Additionally, Act 190 will restrict reusable e-cigarettes to an official state directory of FDA-authorized products to eliminate unauthorized, flavored items from store shelves.

Read More: USA: Tobacco Regulation – States

Tobacco Regulation: Japan

Japan’s health ministry has decided to defer stricter regulations on heated tobacco products (HTPs), maintaining the current rules that allow their use in designated indoor areas. Instead of a hard crackdown, the ministry is shifting to administrative oversight, requiring businesses with designated areas to register with local governments while they continue researching long-term health impacts. This decision provides significant relief to the global tobacco industry, as Japan represents the world’s largest HTP market, accounting for a third of global sales.

Read More: Tobacco Regulation: Japan

Tobacco: Investor Lawsuits

British American Tobacco (BAT) is facing a second major shareholder lawsuit in the London High Court over its historical operations in North Korea. Institutional investors allege that BAT misled the market by claiming to exit North Korea in 2007 while secretly continuing sales via front companies until 2023, artificially inflating its share price. The litigation stems from a landmark 2023 U.S. settlement where BAT paid a record $629 million penalty for bank fraud and sanctions evasion that helped fund North Korea’s weapons programs.

Read More: Tobacco: Investor Lawsuits

USA: Vapes

The Federal Trade Commission (FTC) has issued warning letters to three e-cigarette companies for potentially misrepresenting their products as “Made in the USA” or “Made in Texas.” The agency noted that the vapes or their major components appear to be imported, violating rules that require such products to be “all or virtually all” manufactured domestically. Following a March executive order, this targeted enforcement aims to crack down on deceptive domestic origin marketing across all advertising channels.

Read More: USA: Vapes

Global Vape Market

South Korean manufacturer ITM Semiconductor has commenced mass production at its new 9,500-square-meter facility in Cikarang, Indonesia, to fuel its rapid expansion into the global e-cigarette market. Driven by its role as an exclusive supplier and ODM for KT&G’s “lil Hybrid” lineup, the company’s e-cigarette sales surged 55% year-over-year to ₩42 billion (US$32 million) in Q1 2026. ITM is already seeking additional space to expand its Indonesian production lines.

Read More: Global Vape Market

Heated Tobacco: Markets

Japan Tobacco (JT) has launched LYO, its new line of zero-tobacco heated nicotine sticks, in Romania as part of a $5 billion global investment push into reduced-risk products. Crafted from nicotine-infused herbal leaves rather than tobacco, the menthol and berry-flavored line allows JT to legally bypass the European Union’s ban on flavored heated tobacco products. Designed for JT’s Ploom device, LYO is now available nationwide, positioning the company to compete directly with zero-tobacco offerings from rivals like Levia (PMI) and veo (BAT).

Read More: Heated Tobacco: Markets

USA: Illegal Vapes

Financial technology platform Fiserv and major service station operators like BP, Marathon, and Valero have warned U.S. retailers to stop selling unauthorized e-cigarettes. Store owners face severe penalties, including a total loss of card-processing capabilities or mid-six-figure fines, as a coalition of state and city law enforcement pressures payment networks to choke off the illicit trade. This enforcement targets a booming $9 billion black market where unauthorized brands remain widely available despite the FDA authorizing only 45 specific vaping products.

Read More: USA: Illegal Vapes

KT&G: News

KT&G has signed a Memorandum of Understanding (MoU) with Pakistan’s Khyber Tobacco Company to manufacture and market its “Pine Passion Sky” brand. The proposed royalty licensing agreement allows KT&G to efficiently scale its popular “Pine” brand in Pakistan and the broader South Asia Region by leveraging Khyber Tobacco’s established domestic manufacturing and distribution networks. The expansion remains subject to final regulatory approvals and definitive formal agreements.

Read More: KT&G: News

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