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  • Smokeless Coup

    Smokeless Coup

    Marlboro remains the world’s most valuable tobacco brand, but cigarette alternatives are gaining ground.

    Contributed

    The total value of the world’s top 10 most valuable tobacco brands has decreased by 6 percent, with eight out of 10 brands experiencing a decline in brand value this year, according to the latest ranking by Brand Finance, a leading brand valuation consultancy. The ranking reveals a significant shift in the industry toward smokeless alternatives, driven by changing consumer preferences and increasing regulatory pressures. Despite these changes, traditional combustible tobacco brands remain the most valuable, supported by loyal customer bases and effective pricing strategies.

    IQOS (brand value up 8 percent to $3.5 billion) is the fastest-growing tobacco brand, driven by rising revenue from smoke-free products. Philip Morris International reported smoke-free products reached nearly 40 percent of total net revenues in the fourth quarter of 2023. This was driven by the continued growth of IQOS, which has now surpassed Marlboro in net revenues, solidifying its position as the leading premium nicotine brand less than 10 years after its launch.

    Despite a 6 percent drop in brand value to $32.6 billion, Marlboro retains its position as the world’s most valuable tobacco brand for the 10th consecutive year. It leads the sector by a significant margin, with a brand value more than five times that of L&M, which holds the second spot.

    Altria Group, which owns Marlboro in the United States, and PMI, which owns the brand elsewhere, have both faced declining revenue from combustible products. Altria has struggled with lower shipment volumes and increased promotional investments, including a recent $0.17 per pack price increase on Marlboro and other brands in the U.S. Similarly, PMI has reported a drop in revenue from combustible tobacco. Nevertheless, Marlboro retains its top position due to its loyal customer base and strong promotional strategies.

    L&M (brand value $6.2 billion) has climbed to second in the ranking, despite recording a 2 percent decline in brand value. It has overtaken Pall Mall, which now sits in third following a 9 percent loss in brand value to $5.9 billion. L&M’s brand value has taken a hit as shipment volumes have declined. L&M is the sector’s strongest brand with a Brand Strength Index score of 77 out of 100.

    “While Marlboro continues to lead as the most valuable tobacco brand for the 10th consecutive year, the industry is undergoing significant transformation,” said Richard Haigh, global managing director at Brand Finance.

    “The rise of smokeless alternatives like IQOS highlights shifting consumer preferences and changing market dynamics. Earlier this year, BAT’s announcement of a $31.5 billion impairment on the value of some of its U.S. cigarette brands marked the first significant write-down in a major market.

    “Acknowledging the reality that the market for traditional cigarettes is shrinking and taking action should be seen both as a bold and an important step in addressing an existential problem for the company. With eight out of the top 10 brands experiencing declines in value, tobacco giants must be brave in admitting market shifts and strategically planning their next moves to sustain global dominance and relevance.”

    Chesterfield (brand value $3.1 billion) has maintained its brand value year-on-year and advanced one position to seventh place. The brand has seen a rise in shipment volume, with an 8 percent increase in the fourth quarter of 2022 and a 14 percent increase for the full year, which has contributed to its stable brand value this year.

    The latest rankings highlight the dominance of U.S. tobacco brands, which make up a remarkable 92 percent of the total brand value in the ranking, totaling $61 billion. Only two brands in the ranking are from outside the U.S., the U.K.’s Rothmans (brand value down 8 percent to $2.9 billion) and Indonesia’s Sampoerna (brand value down 12 percent to $2.7 billion).

  • Get Packing

    Get Packing

    Once the EU Packaging and Packaging Waste Regulations come into force, tobacco companies will have around 18 months to ensure all their packaging in the market is compliant. | Photos: Parkside

    Preparing for Europe’s new waste regulations

    By George Gay

    In July, Parkside issued a press note describing some of the ways in which flexible packaging might be used to help manufacturers in responding to the EU’s nascent Packaging and Packaging Waste Regulations (PPWR), ideas that Tobacco Reporter followed up on in a conversation with the company’s sales account manager of tobacco, Laura Haggerty.

    Parkside’s Recoflex range includes plastic and paper-based materials that are suitable for recycling.

    Tobacco Reporter: Would you please explain to those not entirely familiar with the world of packaging how you define the term “flexible packaging?”

    Laura Haggerty: Flexible packaging refers to any item of packaging that is made from a nonrigid material. In the tobacco industry, it’s most commonly seen in the form of loose-tobacco pouches, the shrink-wrap film that we use to protect cigarette cartons, and cigarette carton liners.

    However, flexible packaging can be made of almost any material, including plastic, bioplastic, paper and aluminum foil. Each material has its own pros and cons, which is why they are often combined in the form of laminates. A tobacco packaging will often contain several laminate materials to help keep its contents fresh by protecting against moisture and oxygen.

    Your press note says a preliminary deal on the PPWR was reached in April. Do you know when the regulations will be finalized?

    The provisional text of the deal has been finalized and will come into force at the end of 2024, but some key details will not be decided for several years.

    The EU will investigate the viability of bio-based materials in 2027 while the design for recycling guidelines will not be set until 2028. This means PPWR will not take its final form until the end of the decade at the earliest.

    When will the regulations be enforced?

    While PPWR comes into force at the end of this year, businesses have 18 months to ensure they comply with the new rules. That means, in practice, they will be enforced from mid-2026.

    What will be the main differences between the packaging regulations under PPWR and those under the Packaging and Packaging Waste Directive (PPWD) already in force?

    The main difference is that PPWR is a regulation whereas PPWD is a directive. In EU law, directives set a goal that is legally binding, but member states have a degree of freedom in how they reach that goal. Regulations are entirely legally binding, setting out policies that member states must follow in full, even if that means rewriting that country’s laws. This will also harmonize regulations across the EU, which should help with implementation.

    This is important as it will see extended producer responsibility (EPR) rollout across the EU. EPR is a policy approach that makes packaging producers responsible for the cost of packaging waste management. These costs are meant to encourage producers to design out unnecessary packaging while also incorporating recyclable materials where possible.

    PPWR also introduces new, more ambitious targets for waste reduction that each country must meet. These targets are to reduce packaging waste per capita by 5 percent by 2030, 10 percent by 2035 and 15 percent by 2040 compared to 2018 levels. It includes mandatory reuse and refill targets for certain packaging types, more restrictions on single-use plastics and PFAS [perfluorinated and polyfluorinated alkyl substances] chemicals, and new labeling requirements, among many other things.

    What are the main ways in which the new regulations will affect the tobacco/nicotine industry?

    The introduction of EPR will have a major effect. Tobacco companies operating in the EU will have to cover the costs of waste disposal, so they will find margins squeezed unless they can redesign packaging to be easier to recycle—or use less packaging altogether. When the design for recycling guidelines is finalized, this may become mandatory.

    This will affect the use of materials like shrink-film, which is currently problematic to recycle in existing infrastructure, so tobacco companies may have to look at other barrier materials to protect their products through the supply chain.

    Part of PPWR also includes new labeling requirements, which tobacco companies will have to incorporate alongside their existing strict labeling obligations.

    At this stage, can and should tobacco/nicotine product businesses start considering their options and even taking steps to change at least some of their packaging?

    Tobacco companies should absolutely look at ways they can change their packaging. Once PPWR comes into force, they will have around 18 months to ensure all their packaging in the EU market is compliant. This does not leave much time to evaluate, redesign and produce new packaging. Remember that as tobacco packaging is already highly regulated in the EU, any changes must also comply with existing legislation.

    Looking at the wider tobacco industry, including its new-generation nicotine products, which of its packaging materials will be affected by the likely changes brought in by the PPWR?

    Flexible packaging like pouches will likely be affected as they rely heavily on soft plastics, which are difficult to recycle. As mentioned, this will also affect the shrink-wraps and the inner liners commonly used in flip-top cartons and other rigid packaging, so it will likely have wide-reaching consequences for all tobacco packaging.

    Should the industry try to eliminate all “plastic materials” from its packaging, however that term is defined, or should it aim to eliminate only those plastics that do not break down in an environmentally friendly manner and become “forever” particles?

    Plastic is often painted as a villain, but the truth is much more nuanced than that. Unnecessary plastic use is a problem, but solving it needs a holistic, considered approach. Simply eliminating all plastics would have a disastrous effect on the environment in the form of increased product waste.

    Compostable materials are a possible solution and an area where we are a market leader. We produce accredited compostable pouches that can break down in domestic compost heaps and industrial organic recycling facilities. These materials are commonly used for pouches, but they also have applications as wraps for cigars and liners for cartons.

    Which of the Parkside packaging innovations mentioned in your press note would be appropriate for tobacco industry application?

    We work closely with our customers in the tobacco sector, so many of our solutions are ideal for tobacco packaging applications. Our Recoflex range includes plastic and paper-based materials that are suitable for recycling and can be tailored with high barrier coatings, metallization and more. We produce pack wraps, individual wraps for cigars, inner liners, resealable lock-and-peel pouches, and compostable pouches, all of which are suited to many applications within tobacco packaging.

    Will the arrival of the PPWR regulations provide an opportunity for the tobacco/nicotine industry to make radical changes to its packaging, or do tobacco/nicotine industry-specific regulations make such moves impossible or unlikely?

    The strict industry-specific regulations do pose some challenges when it comes to labeling. Packaging will need to contain labeling that describes its material composition and recyclability, so incorporating these new labels in a way that complies with existing restrictions may require some redesigning.

    Restrictions on pack shape, such as restrictions on slimline cartons, mean it is difficult to radically rethink many tobacco packaging formats. However, it may be possible to reduce the weight of packs using lighter weight materials combined with water-based barrier coatings to ensure performance.

    Presumably, there will be a cost associated with tobacco industry players changing their packaging. How can they minimize such costs while remaining compliant?

    We recommend working closely with a trusted packaging partner. At Parkside, we have worked closely with many tobacco companies for many years. That means we have developed the expertise needed to tailor packaging solutions to ensure they meet the needs of our customers in terms of both pack performance and compliance. This ensures packs can be designed and produced efficiently, which is always the best way to minimize costs.

    Progressive businesses are generally not opposed to reasonable regulations provided they are evenly applied and competition remains on a level playing field. Do you have any insights, based on your experience with the PPWD, of how strictly and how evenly the new regulations are likely to be applied?

    Part of the idea of PPWR is to harmonize regulations across the EU, so that would indicate the intention is to create a level playing field. However, it could still be subject to some variations as different member states have differing infrastructures. A country that already has robust recycling and waste management infrastructure in place will find it much easier to adapt.

    As a result, we anticipate PPWR will be applied more evenly than PPWD was—but there may still be some divergence in places.

    Finally, while the EU is hugely important to your business, does Parkside focus on other parts of the world?

    Certainly. We have invested heavily in our Malaysian site in recent years, meaning we now offer a comprehensive suite of services and solutions to tobacco companies across APAC [Asia-Pacific] countries as well as Europe. This gives us a greater level of agility and flexibility to operate on a global scale.

    George Gay is Tobacco Reporter’s European editor, but his territory spans the globe. Based in London, George has covered the tobacco industry since 1982, initially for a U.K.-based publication and since 2004 for Tobacco Reporter. George’s understanding of industry issues, combined with his keen sense of observation and dry wit, have earned him a loyal following among Tobacco Reporter’s readers.
  • All-Rounder

    All-Rounder

    Due to its versatility, homogenized tobacco remains key to tobacco companies’ operations.

    By Stefanie Rossel

    For reconstituted tobacco leaf (RTL), the only way seems to be up. Valuates Reports estimated the global RTL market at $305.47 billion in 2023 and expects it to reach $370.85 billion by 2030, which corresponds to a compound annual growth rate (CAGR) of 2.7 percent between 2024 and 2030.

    Also known as homogenized tobacco or recon, RTL was developed by Schweitzer-Mauduit International (SWM) in the 1930s. Initially, RTL was designed to reduce waste. By recovering “leftovers” such as tobacco dust, scraps and stems, and reintegrating them into the production process, manufacturers can save valuable raw materials.

    Today, homogenized tobacco has a wide variety of applications. Apart from its use as a material to reduce tobacco product filling cost, it is an essential ingredient in cigarette blend design, offering cigarette manufacturers a convenient tool to lower the nicotine content of their products. The advent of heated-tobacco products (HTPs) has created new opportunities for the product. RTL allows tobacco companies to develop blends that deliver the desired taste and nicotine when heated to a comparatively low temperature.

    According to SWM, the recon market is driven by several trends. For starters, the cigarette market is expected to exhibit a CAGR of minus 3.5 percent between 2023 and 2028. The trend, the company points out, is obviously not the same in every country, with the U.S. and Japan leading the decline and Africa and the Middle East enjoying slight growth. At the same time, the HTP market is projected to witness a 15 percent CAGR between 2023 and 2028. SWM anticipates global sales of HTP consumables to reach over 300 billion sticks by 2027.

    The traditional cigarette market and the HTP market are influenced by the same factors. Cigarette or stick designs have an impact due to their recon inclusion rate per stick while there is also customer capacity to self-source the recon, as for example Philip Morris International does. In addition, the availability and price of leaf tobacco can also drive interest in RTL. SWM stresses that the drivers are not the same for recon used in conventional cigarettes and recon used in HTPs.

    A Product With Many Benefits

    Tapuwa Pswarayi

    In traditional RTL, SWM works closely with its customers to develop materials for innovative applications, says SWM’s product manager, Tapuwa Pswarayi. “In addition, our ancillary services allow us to perform in-depth analysis of materials to ensure that recipes meet all regulatory specifications. We firmly contribute toward reconstituted tobacco having been a key part of the tobacco blender’s toolkit for decades. In recent years, more major tobacco players have been innovating with SWM recon solutions in an increasing number of applications—from cigarette blends [to] roll-your-own to shisha. The many benefits of recon span across operational efficiency, regulatory compliance and cost stability.”

    With increasing volatility in tobacco markets globally, the relative price stability of recon presents a great opportunity to mitigate the impact of fluctuating costs. “The past growing season was challenging for many tobacco farmers, resulting in reduced quantities produced and sharp price increases in the majority of the tobacco-producing world,” he says. “Reconstituted tobacco is therefore a valuable tool for creative blenders—performing complementary roles in blend segments while offering a more competitive price.”

    The functional advantages of recon produced with SWM’s papermaking process are also an important factor, according to Pswarayi. “It’s made from tobacco by-products, such as stems, scraps, fines and dust, which are mixed with water before undergoing a two-step papermaking process to produce a uniform sheet, known as a ‘web.’ The web closely mimics the aesthetic and physical properties of tobacco leaf. This means it can be processed in the same way as tobacco leaf—whether it’s intended for cigarettes, cut rag or roll-your-own—with several additional benefits for the manufacturer.”

    Moreover, the product fits in well with current efforts to make production processes more sustainable. RTL allows for waste reduction through optimized utilization. “While the standard process typically generates waste during leaf-processing to packing and manufacturing, recon degrades less during production,” Pswarayi says. “This allows manufacturers to retain more material in the finished product, resulting in greater efficiency and reduced costs.”

    Almost any combination of tobacco by-products can be used to create high-quality recon, he says. SWM uses two main supply models—buying recon from its established portfolio of taste and performance characteristics, and developing unique recon blends. “To achieve this, we take the raw materials supplied by the customer and convert them into recon at our state-of-the-art facilities, with the customer owning exclusive rights to use the recipe that you create.”

    Beyond Tobacco

    Bruno Stefani

    SWM started to work on reduced-risk products in 2014. In 2017, it set up a dedicated reduced-risk products (RRPs) team, which today employs about 50 people, 20 of whom work in dedicated laboratories. “Our heat-not-burn recon solutions are designed to be easily used in existing cigarette-manufacturing assets,” explains Bruno Stefani, SWM’s HTP product manager of RRPs. “This allows our customers to go fast.

    “In that spirit, one of our pillars is to identify and select interesting tobacco grades for HTP application within tobacco material portfolio already sourced by customers for their cigarette production, which simplifies and secures the tobacco material sourcing. Every HTP is an inseparable combination of an aerosol-generating material—i.e., our recon, a consumable and a heating device. To create a unique consumer experience, we master the understanding of these three elements and their interactions.”

    The fact that SWM also manufactures cigarette paper allows the company to supply HTP wrapping papers and paper-filtering media to help customers reduce the plastic content of their products, according to Stefani. “We also invest a lot in securing freedom to operate to facilitate the access of this HTP market. Our role is also to identify potential reliable partners which can contribute to the final solution, covering all aspects of customers’ need and expectation.”

    SWM also benefits from its long-time experience in botanical fiber production. Botanical reconstituted with or without nicotine is another driver for growth in the HTP sector, says Stefani. “There is a strong interest for such tobacco-free products,” he says. “The big tobacco companies have really started to be active in this market since last year with the launch of Veo by BAT and then Levia by PMI and iSenzia by Imperial Brands. As we can process very different kinds of material shapes, leaves, nuts, roots, fruits, flowers and so on, reconstitution offers a very interesting solution to get an industrial product made with natural ingredients with well-mastered specifications and which is designed to smoothly run in an existing customer’s primary department. We also tightly master the addition of nicotine or other active ingredients to be added to the botanical on customers’ request.”

    Stefani says that SWM continuously scouts the market for new trends and needs, as well as the manufacturing technology offer, in order to be ready to develop and supply new materials and comply with its customers’ new developments. Judging from recent innovations in the HTP sphere, there’s certainly more to come.

    Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.
  • Warm Reception?

    Warm Reception?

    Photo: Ina

    How heated tobacco might change the US

    By Cheryl K. Olson

    A new kind of nicotine alternative is sidling back onto the U.S. market. Modern heated-tobacco products (HTPs) were gone before most Americans knew they even existed. After a limited test, a patent dispute took them off U.S. shelves in 2021.

    The gradual return of HTPs has just begun, with a single brand. Within a few years, Americans will likely have access to multiple options now sold in other nations. 

    Conversations with a close family friend, a former pack-a-day smoker, piqued my interest in the potential of heated tobacco. While working for the European Union from Spain, he had sought out and rejected cigarette alternatives, from vapes to nicotine gum. For him, heated tobacco was a “radically different” revelation.

    “It soothed my needs. It felt right and reassuring,” he told me. “From the moment I bought my IQOS, in 2017, I never smoked a cigarette again.”

    Here’s a quick introduction to heated tobacco and its potential to attract and benefit Americans who smoke.

    What HTPs Are and Aren’t

    I asked Corey Henry, director of U.S. communications at Philip Morris International, to help me understand this product category. Basically, an HTP involves electronically heating a stick or capsule of tobacco to beneath the point of combustion, so it releases an aerosol but doesn’t burn. The design of the heating element varies.

    The primary difference between an HTP and an e-cigarette? “A heated-tobacco product has to have some tobacco presence, whether it’s a leaf or paste,” says Henry.

    HTP ancestors included Premier and Eclipse from R.J. Reynolds. These products were not electronic. The heat came from lighting a carbon tip (which glowed like a piece of charcoal on a barbecue); it was distributed through a rod. This approach did reduce some toxicants. PMI introduced the first electronic HTPs, including Accord in the U.S. and Heatbar in Germany.

    According to the Financial Times, HTPs have enjoyed steady worldwide growth, exceeding that of vaping. The global HTP retail market value is estimated to reach $38.9 billion this year. The largest markets thus far include Japan, Italy and South Korea. In addition to IQOS, major brands include BAT’s Glo and Japan Tobacco’s Ploom. 

    American Evolution

    The U.S. Food and Drug Administration first authorized the marketing of an IQOS “heat-not-burn” system in 2019. This included a holder and charger device plus several types of heated-tobacco units, called Heatsticks. That year, IQOS was gradually introduced in several Southeastern U.S. test markets by Philip Morris USA/Altria. Due to a dispute with R.J. Reynolds over technology patent infringement, IQOS left the U.S. market after just two years.

    In early 2024, PMI took over from Altria the exclusive U.S. commercialization rights to the IQOS tobacco-heating system. After some delay, the IQOS3 model (authorized by the FDA in 2021) will test-launch in Austin, Texas, this fall. Henry noted that internationally, IQOS launches usually start in one or two cities. “You can make assumptions going in, but then you’ve got to test those assumptions and adjust, adapt.”

    The national rollout of IQOS awaits the FDA’s OK of the latest evolution of IQOS, called Iluma. Applications were submitted to the FDA in October 2023; marketing authorization is anticipated in the second half of 2025. Iluma features various upgrades, including a slightly different heating technology and distinctive tobacco sticks. IQOS Iluma is available internationally in over two dozen markets.

    “There’s a great level of interest to see how IQOS does in the U.S., so they want to see it launch and expand rapidly,” says Henry. “What we say is patience. There’s 28 million smokers, there’s 50 states—it’s basically like the European Union.”

    U.S. HTP competitors are on the horizon. For example, a BAT submission for Glo has been under FDA review since 2021, along with a modified-risk tobacco product application submitted in 2023. Altria has partnered with JT Group to submit a PMTA to the FDA with the goal of bringing Ploom to the U.S. 

    The FDA’s list of authorized e-cigarettes includes a Logic Vapeleaf product that vaporizes capsules that contain tobacco. This is technically a heated-tobacco product. The product appears to be no longer marketed.

    Attractions and Risks

    One reason for a slow U.S. rollout is the low level of familiarity with heated tobacco. People need to get clear on the basics: It generates an aerosol; it doesn’t burn tobacco.

    “There’s always an initial period of awareness and education that you have to do with adults who smoke, to help them understand what it is and what it isn’t,” says Henry. “When people hear the concept, the reaction is, ‘So … it’s like vaping?’”

    We don’t even know how much awareness or confusion may exist. A large government survey fielded in May 2019 asked whether adults had heard of or tried heated-tobacco products (or heat-not-burn). Overall, 8.6 percent said they had heard of heated tobacco, and one-half of 1 percent had tried it. Here’s the catch: The brands mentioned in the survey questions were IQOS, Glo and Eclipse. Respondents who claimed knowledge of heated tobacco were likely thinking of the outdated Eclipse.

    Responses to the 2023 National Youth Tobacco Survey are another example. One percent of respondents (representing 370,000 teens) claimed to have used an HTP. Given that the category was not sold anywhere in the U.S. at the time, this is impossible; it can only be a misunderstanding. The next few youth surveys in the U.S. will require cautious interpretation of this topic.

    What makes us think people who smoke will switch to HTPs? Randomized controlled studies have shown that vaping works to help people stop smoking, even those without plans to quit. For HTPs, we’re not there yet. That kind of evidence would raise the comfort level of health professionals and public health advocates. An Italian trial found good results for HTPs, comparable to e-cigarettes, for smoking cessation.

    Japan makes a good test of HTPs’ potential; sales of e-cigarettes are restricted, and oral products are culturally unappealing. Reduced-risk products are reportedly close to 40 percent of total tobacco industry volume in Japan, with cigarette sales nearly halved since 2015. The latest estimates suggest nearly 12 percent of adults use HTPs. It’s less clear yet how many switch completely from cigarettes to HTPs.

    According to Henry, PMI’s research finds that internationally, about 72 percent of smokers who switch to IQOS do so fully. He anticipates similar results in the U.S.

    Do people have lower exposure to some toxicants and carcinogens when they use HTPs instead of cigarettes? A Cochrane review of randomized controlled trials found moderate-certainty evidence for that. Also, the FDA authorized IQOS 2.4 and 3.0 versions to be marketed with reduced-exposure messaging. Specifically, “Scientific studies have shown that switching completely from conventional cigarettes to the IQOS system significantly reduces your body’s exposure to harmful or potentially harmful chemicals.”

    ‘Easier to Navigate’

    HTPs are designed to mimic the physical sensations of smoking. “We think that bridge is a little easier to navigate with heated tobacco because there’s a level of familiarity,” says Henry. For example, “Your experience with an IQOS heat stick is six minutes or 14 puffs, about the same time that a smoker will smoke a cigarette.”

    Due to this familiarity, my friend in Spain found switching to heated tobacco a quick and smooth adjustment. “With a coffee, when talking with someone, the routine in which I use IQOS is identical to my routine when I smoked,” he said. He learned to keep an extra charger at his office and in his car.

    “The charger you hold in your hand has a very nice feel,” he said. “It’s light, it fits anywhere. So I didn’t miss having a cigarette in my hand,” he said. He also praised the absence of stale smoke smell in his home, car and clothing.

    What else might attract Americans to heated tobacco? One U.K. survey of nicotine users found that common reasons for trying HTPs included curiosity; lack of smell, smoke and ashes; greater social acceptability; wanting to cut down or quit cigarette use; and enjoying the flavors or taste.

    A Harm Reduction Journal study of the U.S. IQOS experience found that people who switched to the initial version were somewhat more educated and higher-income than the average smoking adult. That’s not unusual for early adopters of a new technology. It will be interesting to see how use patterns evolve as people get familiar with the device and see others switch to it. 

    A Role to Play

    Some health advocacy groups have criticized PMI’s claims, suggesting that benefits of IQOS had been overstated. I’ve often wondered how my public health colleagues would view vaping if it had been framed differently at the start. Vaping burst into wide awareness as the subject of a youth-use moral panic. That first impression is hard to overcome. I applaud a careful, gradual, unflashy U.S. reintroduction for HTPs.

    As one industry observer pointed out to me, the few e-cigarettes now authorized for sale by the FDA represent older technologies. New HTP technologies entering the market may benefit from that contrast. Another unknown affecting the fate of HTPs is whether sticks will be taxed like cigarettes or at a lower rate that encourages switching.  

    Now that nondeadly alternatives to smoking exist, it’s critical to speed up switching for those who can’t or don’t want to quit. More options are most welcome. 

    “There really isn’t a silver-bullet solution for smoke-free product alternatives,” says Henry. “It’s important that we distinguish heated tobacco from e-vapor, but in a way that isn’t disparaging. They each have a role to play.”

    Cheryl K. Olson is a California-based public health researcher who specializes in behavioral health issues and consults on tobacco product behaviors via McKinney Regulatory Science Advisors. She spent 15 years on the faculty of Harvard Medical School.
  • Unfinished Business

    Unfinished Business

    Photos courtesy of FOREST

    Despite changing attitudes, FOREST still has an important role to play, says Director Simon Clark.

    By George Gay

    Simon Clark readily admits that some people, even some people operating within the tobacco/nicotine industry, see the Freedom Organisation for the Right to Enjoy Smoking Tobacco (FOREST), of which he is the director, as something of a dinosaur. Indeed, he feels it is part of his job to counter this idea by letting it be known that FOREST is fighting for timeless principles—those of freedom of choice and personal responsibility.

    Not only are these principles timeless, in fact; they are universal in the sense that they apply to all consumer products, not only tobacco in its smoked form, as the name of the organization suggests. For the past 45 years, while not promoting the consumption or use of any product, FOREST has defended the rights of adult consumers, properly informed, to enjoy, without being harassed by excessive regulation, any product that may be sold legally in the U.K.

    But what is of course most impressive is that FOREST, almost uniquely, has been willing to stand up publicly for the rights of cigarette smokers, who, though still amounting to more than 6 million people, have been treated like outcasts by much of polite society—like people of the wrong class, people considered to be without agency, without the mental capacity to make the “right” choices for themselves.

    And, regrettably, it is not only the public health community that has tried to “denormalize” cigarette smokers in this way. In recent years, so too have large swathes of the tobacco/nicotine industry—those who would sell cigarette smokers alternative lower-risk nicotine products, some of them while still selling cigarettes. Many of these companies and organizations have acquiesced in the face of claims that smoking is a “problem” that must be solved rather than a legal activity that provides enjoyment, in various ways, to those who indulge in it.

    The Slippery Slope

    Clark, a nonsmoker, should not be seen as a dinosaur, however, because he and FOREST have long supported the idea of offering cigarette smokers alternative lower-risk products, but the emphasis is on “offering.” He views with dismay verging on disdain the way that some in the tobacco/nicotine industry are willing to throw cigarette smokers under the bus by supporting government efforts to eradicate cigarette smoking and, indeed, tobacco consumption in all forms. And he has a point. Shortly after I met up with Clark in London in July, an email dropped into my inbox with news from the U.K. Vaping Industry Association, toward the end of which was this sentence: “Furthermore, the vaping industry is all about [my emphasis] achieving a smoke-free Britain, and we look forward to working with the new government’s initiatives that support this, as long as it doesn’t damage the vast potential of vaping as our best hope for getting there.’”

    Hmm, you really must be careful what you wish for, and Clark has a salutary message for tobacco/nicotine companies and organizations that align closely with public health, including Philip Morris International, which, while selling combustible cigarettes, are calling for their eradication. He is convinced that once those public health organizations that are now trying to eradicate tobacco smoking do so to their satisfaction, they will go after nicotine consumption using the successful playbook they have honed in respect of cigarette smoking. And, in part, those offering the main forms of alternative products are laying the groundwork for their own demise. By trying to promote their products as therapeutic devices whose only purpose is to provide a way for smokers to quit combustible cigarettes, they are setting a time limit on these products’ useful lifespans. And by supporting the government’s efforts to meet its 2030 target (in England—other nations within the U.K. have their own targets) of ending tobacco smoking, they are further limiting those lifespans.

    Perhaps it might be as well if those attempting to wipe out cigarette smoking revisit their dinosaur imagery. When the dinosaurs were wiped out in the great extinction event of more than 60 million years ago, about three-quarters of all animal species went with them—for the same reasons. Surely, the time has come when it is necessary for those promoting vaping and other tobacco-smoking alternatives to say that they are so confident about the safety of their products that they see no reason why nonsmokers should not consume them.

    Looking Ahead

    I met up with Clark because I was interested to know if, in this, FOREST’s 45th anniversary year, he believed that the organization would be around to celebrate 50 years. “I’m more hopeful now than I was a few years ago that we will get to our 50th,” he said. “I wouldn’t keep FOREST going just for the sheer hell of it. I genuinely think we still have a part to play in the political process.”

    But he is cautious, saying he takes one year at a time, partly because he doesn’t take FOREST’s funding for granted. Philip Morris, never a major source of funding, made its last donation to FOREST in 1997, two years before Clark became FOREST’s director, while BAT, the first company to support the organization, pulled its funding three years or four years ago. That leaves Imperial and Japan Tobacco, the two major tobacco companies on the U.K market.

    Perhaps the split with BAT was inevitable. While Clark says he understands the political and business reasons behind the shift in focus toward lower-risk products, I think the company’s latest claim to be creating a better tomorrow by building a smokeless world would be a little paternalistic and get stuck in the craw of this lifelong libertarian. The trouble here is that by claiming to be able to create a better tomorrow, BAT seems to be saying that everybody must sign up to the same idea of what constitutes a better tomorrow, riding roughshod over Clark and FOREST’s cherished principle of freedom of choice.

    This is not to say that Clark is trying to bite the hand that feeds FOREST or that used to feed it. This is part of what he had to say at a gala dinner marking FOREST’s 40th anniversary, sentiments that he stands by today. “Finally, I’d like to thank the tobacco companies who have supported FOREST for 40 years. We don’t take the companies’ support for granted, and we know that society’s relationship with smoking has changed and will continue to change, and we also know that the companies are changing and moving toward safer nicotine products, as indeed they should.

    “FOREST’s focus is also evolving to embrace and support risk reduction products, but as long as there are adults who choose to smoke, enjoy smoking and don’t want to quit, we will never abandon them because it’s our belief that choice and personal responsibility are paramount.”

    Work Remains

    FOREST is not making a big thing of its 45th anniversary because it believes there is so much going on regarding tobacco smoking regulations that a celebration would have been self-indulgent. Even at its annual lunch, held at the Boisdale restaurant in London in May, which would have provided a suitable vehicle for a celebration, Clark demurred, instead using the occasion to carry forward its campaign to Beat the Ban—the generational ban on selling tobacco products, which, at that time, was making its way through parliament with cross-party support.

    As it turned out, an election was called, and the tobacco and vapes bill that included the ban was abandoned. But that, of course, is not the end of the matter. The new government has committed to resurrecting the bill, though what form it will take is not clear.

    And there is more to come. All tobacco issues in England are likely to be geared around 2030, when smoking is due to have been eradicated from the country—or, rather, in line with the strange way of such matters, is due to be reduced to about 5 percent from the current 13 percent. Clark expects that efforts will be made to reduce the number of outlets allowed to sell cigarettes, and he predicts that pressure will be applied to ban smoking in more outdoor areas, including beaches, which is ironic given that for many people, beaches have become no-go areas due to the illegal but wholesale dumping of untreated sewage into our seas and waterways. He also believes that the generational tobacco sales ban will collapse under the weight of its own absurdities but rather than be abandoned will form the basis for public health, having itself upset the generational balance and harmony, to call for the generational playing field to be leveled up by banning the sale of cigarettes to everybody. Politically, this sort of strategy is called “Building on failure.”

    Education Instead of Coercion

    To be clear, though, Clark has no problem with falling smoking rates; as he says, societies change, but he is concerned that the apparently arbitrary 2030 target date is going to be the springboard for more draconian regulations as the government sees that it has no chance of meeting it. He believes the government’s role should extend no further than educating people about the dangers of certain activities, including smoking, though he emphasizes that education should not include propaganda and fearmongering. Once governments start to exaggerate health risks, they lose their audience, he says. And he has no truck with the use of punitive rates of taxation, which amount to attempts at social engineering and in part lead to the government’s losing control of the market to illicit operators at the expense of the retail sector.

    One of Clark’s big concerns is that governments are, in this way, increasingly interfering in all manner of people’s lifestyle choices by attacking those choices rather than their likely causes. Noting that smokers are more prevalent in deprived areas, governments have chosen to double down on anti-tobacco activities in those areas rather than taking the more difficult route of attacking the cause of the deprivation.

    While such things make him angry, so that at times he can come across as quite cross, he also tends to see the funny side of things. With a twinkle in his eye, he told me it was interesting how many senior politicians whose periods in power were going pear-shaped would choose an easy target, such as smoking, to bolster their flagging legacies. Theresa May, as prime minister, had hit on the 2030 target date, seemingly without much evidence to support the relevance of that year, and Rishi Sunak, as prime minister, had lifted the generational tobacco sales ban from an opposition idea.

    Finally, it would be amiss not to mention the word enjoyment, which is very much part of the FOREST name and credo but can get overlooked because the organization is continually fighting fires. Clark said that one of the things he was most proud of during his time as director of FOREST was his commissioning eight years ago of a study by the Centre for Substance Use Research in Glasgow, Scotland, into the attitudes of about 600 confirmed smokers: people who smoked and didn’t want to quit. “The pleasure of smoking: The views of confirmed smokers” found that more than 90 percent of respondents smoked because they enjoyed it and derived pleasure from smoking. Just over half said they were probably addicted to smoking but didn’t care because the pleasure outweighed the addiction.

    The results of the study did not receive a great deal of media attention, probably because it goes against the received idea that smoking is a disgusting habit that most smokers wish they had never started and would not start given their time again. But one of the things that I take away from the study is Clark’s courage in commissioning it in the face of such received ideas. And partly because of his courage in standing up for what many think is a lost cause, smokers can be thankful that this “dinosaur” hopes he will be in charge as FOREST approaches its 50th anniversary. “I still enjoy my job,” he said. “I still think I have something to offer. I still get a kick out of it. And I still think we have a role to play.”

    George Gay is Tobacco Reporter’s European editor, but his territory spans the globe. Based in London, George has covered the tobacco industry since 1982, initially for a U.K.-based publication and since 2004 for Tobacco Reporter. George’s understanding of industry issues, combined with his keen sense of observation and dry wit, have earned him a loyal following among Tobacco Reporter’s readers.
  • And the Winners are …

    And the Winners are …

    Announcing the 2024 recipients of the Golden Leaf Awards

    TR Staff Report

    Tobacco Reporter presented its 2024 Golden Leaf Awards Sept. 25 during a festive ceremony at the Agora Riviera Restaurant in Kavouri, near the site of this year’s Global Tobacco and Nicotine Forum in Athens. Sponsored exclusively by paper and packaging solution provider BMJ of Indonesia, the Golden Leaf Awards recognize excellence in the nicotine sector in the midst of our industry’s unprecedented transition.  

    Photos: Timothy Donahue

    ARAC received a Golden Leaf Award for its outstanding service to the industry. Renowned for its expertise in social and behavioral sciences, the company specializes in data-driven research and analysis, providing customized solutions to manufacturers, public health advocates, regulatory agencies and industry consultants globally.

    ARAC’s comprehensive services include surveys, interviews, focus groups, label development, usability studies and clinical behavioral studies, all aimed at advancing tobacco harm reduction.

    The company has transformed from a consultancy to a fully staffed contract research firm. The expanded team brings unmatched expertise to every project, ensuring comprehensive and impactful results. ARAC’s internal team of psychologists, statisticians, behavioral scientists and business development specialists boast over a half-century of industry expertise.

    The in-house survey methodologist and medical monitoring team enhances its standardization and facility training with on-site clinical assessments and proper sample distribution.

    ARAC assists clients worldwide in product development and consumer research supporting innovation and next-generation products, with a focused expertise on the regulatory sciences for U.S. applications, including premarket tobacco product applications, modified-risk tobacco product applications and substantial equivalence procedures.

    Greentank was recognized for its Quantum Vape, a state-of-the-art heating chip that replaces traditional cotton wick and ceramic heating elements. The technology outperforms other leading atomization products on key safety metrics, including harmful and potentially harmful constituents (HPHCs) and metals. It also delivers superior flavor and a consistent consumer experience.

    The Quantum Vape represents a breakthrough in inhalation science with the potential to catapult the industry beyond the current generation of atomization technology. Whereas most developments in recent years have amounted to tweaks of substrates and print materials, Greentank’s is the first in years to explore an entirely new foundation.

    Among other benefits, the heating chip eliminates the risk of thermal cycling, therefore ensuring unprecedented levels of flavor consistency. Innovative assembly technologies ensure the heating chip emits no ceramic particle emissions and contains the lowest levels of HPHCs. While it’s not possible to claim complete absence, third-party testing and rigorous chemical analysis have found HPHCs to be at undetectable levels.

    With its Quantum Vape, Greentank aims to lead the market toward a safer and better future.

    Koerber took home the BMJ Most Committed to Quality Golden Leaf Award for its unwavering support of the nicotine business for nearly 80 years. Since its creation, the Hamburg-based company has consistently pushed the envelope with groundbreaking technologies, enabling the nicotine industry to produce ever more efficiently without compromising quality.

    Koerber’s filter machines continue to set the global standard while its legendary Protos cigarette-making machines lead the market worldwide. Over the years, the company has added, organically and through acquisitions, many competences, including in physical measuring, foreign matter detection and smoke analysis, along with primary machinery, recon equipment and flavors.

    As the nicotine business moves to its next chapter, Koerber is again at the forefront, developing equipment for the manufacture of cigarette alternatives such as tobacco-heating products.

    In creating the technology to manufacture tomorrow’s products, the company leverages not only the expertise developed in the traditional tobacco business but also the pioneering mindset that has kept it at the cutting edge of nicotine technology for more than three quarters of a century.

    Photo: Taco Tuinstra

    The Kutsaga Tobacco Research Board was recognized for its efforts to promote sustainable growth. Eager to capture more value from its tobacco business, Zimbabwe aims to build a $5 billion industry by 2025 by expanding cultivation and moving up the value chain. With seed sales of more than 1 million grams as of Aug. 1, according to The Herald, the nation is poised to set new production records in the upcoming growing season.

    To promote farmer viability and minimize the environmental impact of growth, Zimbabwe aims to increase production without laying claim to significantly more farmland. Kutsaga has contributed to those goals by developing seed varieties that are not only more productive but also more resilient, helping farmers cope with challenges such as pests and climate change.

    In addition, the research board has been helping growers become more productive by reducing post-harvest losses. Zimbabwean tobacco production is dominated by smallholders who use wood as a fuel for tobacco growing. To address deforestation, Kutsaga has been developing sustainable wood sources and more efficient curing methods.

    SindiTabaco received a Golden Leaf Award for its role in coordinating relief efforts after Brazil’s Rio Grande do Sul state in May suffered the worst floods in living memory. In all, the deluge impacted 1,929 rural properties in 75 municipalities. Candelaria was worst impacted, with 214 tobacco farmers suffering losses.

    As one of the world’s leading tobacco-growing areas, Rio Grande do Sul plays a key role in global leaf supply. To help flood victims, SindiTabaco and its member companies donated basic food items, cleaning supplies, hygiene kits and furniture. They also provided personal loans for reconstruction and offered mental support from psychologists. In addition, tobacco companies and associations made available power generators and water tanks as well as boats and vehicles to rescue stranded people and animals.

    The efforts helped many tobacco farmers and their dependents recover from disaster. According to a survey, 96 percent of the affected farmers intend to continue producing tobacco. SindiTabaco expects tobacco production from the impacted area to remain close to the projections estimated for the 2024–2025 growing season.

  • Penalties for U.S. Retailers Selling Illegal Vapes

    Penalties for U.S. Retailers Selling Illegal Vapes

    The U.S. Food and Drug Administration is seeking fines against two brick-and-mortar retailers and nine online retailers. The FDA previously issued warning letters to these retailers for their sale of unauthorized tobacco products; however, follow-up inspections revealed that the retailers had failed to correct the violations. Accordingly, the agency is now seeking a civil money penalty of $20,678 from each retailer.

    To date, the FDA has filed civil money penalty complaints against 70 manufacturers and 160 retailers for distribution and/or sale of unauthorized tobacco products. These actions reflect the FDA’s continued dedication to bringing enforcement actions against entities along the supply chain that violate the law relating to tobacco products.

    The FDA has currently authorized 34 e-cigarette products and devices. The agency maintains a printable one-page flyer of all authorized e-cigarette products that retailers can easily consult to determine which products may be lawfully marketed and sold in the United States. Entities manufacturing, importing, selling or distributing e-cigarettes that lack the required premarket authorization risk enforcement actions.

  • Vapes Major Culprit in Aviation Battery Incidents

    Vapes Major Culprit in Aviation Battery Incidents

    Image generated with Adobe Firefly

    The rate of “battery thermal Runaway incidents”—instances of lithium-ion batteries overheating on passenger planes—hit a five-year peak last year, with e-cigarettes being the biggest culprit, according to a report from UL Standards & Engagement (ULSE), a nonprofit organization focused on safety standards.

    The data comes from ULSE’s Thermal Runaway Incident Program (TRIP), a voluntary lithium-ion battery incident reporting system. TRIP comprises 35 passenger and cargo airline participants. The program was designed with the aviation industry to better understand the extent of thermal runaway incidents caused by lithium-ion batteries onboard aircraft and how to prepare for, or ideally prevent, future incidents.

    “Passengers are often unaware that many devices they bring on board are powered by lithium-ion batteries, let alone the risks they carry, and it’s much harder to solve a problem that they do not know exists,” said David Wroth, director of technology and systems at ULSE and the leader of TRIP, in a statement. “Thermal runaway incidents on board aircraft are largely preventable but admittedly more difficult to contend with at 40,000 feet. TRIP provides a unique opportunity for the aviation industry to come together to find strategies to mitigate the risk of these incidents.” 

    As technology evolves and more products rely on rechargeable power, lithium-ion batteries are getting more powerful and in some cases larger, further complicating the thermal runaway threat. Damaged, substandard, or counterfeit batteries run the greatest risk of going into thermal runway, presenting serious consequences in flight.

    Key takeaways from the report include:

    • Incidents are at the highest point in five years of data collection, rising 28 percent from 2019-2023. There are an average of two thermal runaway incidents reported in the TRIP database each week. While on the rise, with approximately 180,000 flights in U.S. airspace per week, it is still highly unlikely to experience a thermal runaway incident.
    • The average passenger brings four rechargeable devices on board. Most common items include smartphones (82 percent), laptops (41 percent), wireless headphones (39 percent), and tablets (36 percent). E-cigarettes were responsible for the most incidents in 2023, with 35 percent of reported incidents attributed to vaping devices on passenger flights, followed by power banks, representing another 16 percent of incidents.
    • Most incidents happen on the aircraft with devices that are stored near the passenger’s seat. Almost nine out of 10 (87 percent) incidents are reported on the aircraft, with the remaining 13 percent occurring when baggage and personal items are on the move. On the aircraft, thermal runaway incidents occur in or around the passenger’s seat nearly 60 percent of the time.
    • The vast majority of incidents are addressed before reaching the fire or explosion stage of thermal runaway. Most (85 percent) incidents in 2023 were addressed when batteries showed warning signs such as overheating and smoking prior to entering full thermal runaway. While only 15 percent of incidents resulted in fire or explosion, the speed in which thermal runaway can develop means that the events in the majority could have been more serious had the issue not been addressed quickly.
    • Rechargeable devices are being packed in checked luggage. The devices that were most cited in thermal runaway incidents in 2023 were also the two most frequently put in checked luggage, according to passengers surveyed. More than a quarter (27 percent) of travelers reported checking portable chargers, and another 27 percent said they checked e-cigarettes. Devices that enter thermal runaway in checked baggage cannot be accessed by crew while in flight, and fires may not be detected as quickly in the cargo hold as they would be in the cabin.

    “Our research highlights several trouble spots that need to be addressed, from passengers missing warnings about lithium-ion batteries to packing rechargeable devices out of reach,” said Lesley Rohrbaugh, head of insights and policy analysis for ULSE. “But we also see clear opportunities to reduce the risk and that’s where we’re focused.” 

    Through additional passenger and cabin crew focus groups and interviews conducted by ULSE and data from TRIP, strategies to reduce these risks include passenger education, cabin crew training, and standards for aircraft baggage handling.

  • Zimbabwe Growers Start Planting Irrigated Tobacco

    Zimbabwe Growers Start Planting Irrigated Tobacco

    Photo: Taco Tuinstra

    Tobacco farmers in Zimbabwe started planting irrigated tobacco this week, with many expressing optimism about the upcoming growing season, reports The Herald.

    Zimbabwe law stipulates Sept. 1 as the earliest legislative date for transplanting tobacco from the seedbed to the field. The bulk of rain-fed tobacco crop will be planted from late October to early December.

    Most irrigated tobacco is grown by contracted growers who get their inputs on time. About 95 percent of the country’s crop is grown by contracted farmers.

    “We have high hopes this season following the weather forecast so farmers are in the fields,” said  Tobacco Farmers Union Trust President Victor Mariranyika.

     Zimbabwean growers earned $793.18 million from 231.47 million kg in tobacco sales during the most recent marketing season, compared with $896.38 million from 295.94 million kg the previous year.

    However, most farmers made more money than in the prior season, leaving them in a good position for the upcoming growing season.

  • Lifting the Veil

    Lifting the Veil

    A peek at the future of vaping technologies

    By Stefanie Rossel

    David Newns

    As sales of combustible cigarettes continue their downward spiral, reduced-risk products (RRPs) keep gaining ground. Euromonitor International estimated the retail value of the worldwide RRP market at $19.34 billion in 2023 and expects further growth.

    Plxsur, the world’s largest group of independent vaping companies, reckons that the 12 markets it operates in are together worth $20.8 billion and will grow to $59 billion by 2033. The company expects RRPs to overtake cigarettes over the next 10 years. “Looking at the U.K. alone, the number of cigarette users is currently at parity with RRP users at around 12 percent of the population, with the latter expected to become the dominant format this year,” says Plxsur’s chairperson and co-founder, David Newns.

    In terms of technology trends, a decade is a long time. In the past 10 years, vapers have moved from “cigalikes” to pods then to disposables and now back to reusables again. However, many current vape products still have shortcomings, particularly in areas such as user-friendliness, nicotine delivery and sustainability. Going forward, Newns sees two main considerations driving people to RRPs. “The first is cost-effectiveness, with reusables more cost effective than disposable vapes and certain cigarettes,” he says. “The second is user experience. Technology is constantly evolving, and the category continues to advance RRPs to replicate the delivery of nicotine in a cigarette in terms of speed of delivery and satisfaction.”

    Innovation in the category, Newns points out, will depend on two key factors: the delivery of nicotine in a reduced-risk format that satisfies users to a point that they don’t feel compelled to return to cigarettes and the behavioral aspect of smoking. “In order to ensure RRPs are attractive to smokers, the behavioral patterns must not differ dramatically,” observes Newns. This, he says, explains why nicotine patches or gum alone often aren’t successful in helping smokers quit. “Smokers are most successful at quitting when using vapes, either on their own or in combination with other products,” says Newns. “Given the ritualistic elements that vapes provide, which [are] similar to smoking, they are often seen as a natural next step for those looking to quit.”

    According to Newns, devices will likely also feature more connectivity functionality in the future.

    Enhancing Nicotine Delivery

    Michael Wang

    Optimizing nicotine delivery has been front and center in recent innovations. The German startup Splash, for example, has developed a product that generates a foam instead of vapor (see “Bubbles of Bliss,” Tobacco Reporter, December 2023) while U.K.-based Qnovia has designed an inhaler that works without heating (see “High Tech Quitting,” Tobacco Reporter, March 2023).

    Ispire Technology Co-CEO Michael Wang expects constant introductions of novel and unique entries into the nicotine-delivery space going forward. “However, the key factor to consider is efficacy—the actual effectiveness of nicotine delivery, its impact on the body and its absorbency,” he says. “Methods like Splash, which deliver nicotine through a foam in the mouth, or pouches like Zyn result in a different neurological uptake of nicotine. These methods take longer to be absorbed into the bloodstream, delaying the time it takes to reach peak effect. Research supports [the idea] that aerosolization is the most efficient and optimized way to deliver nicotine into the bloodstream for immediate absorption. This efficiency is largely due to particle size and how it is distributed in the body. Aerosolized nicotine, delivered to the lungs, ensures rapid absorption and immediate effect, unlike oral or sublingual methods, which take longer to act.”

    Both Wang and Newns anticipate the development of better heating systems that eliminate the metal emissions associated with nichrome wire-based heating systems. “The performance and safety of the core vaporizer technology are critical concerns,” says Wang. “Many devices rely on ceramic heating elements, which, while cost-effective and easy to manufacture, present risks. If the manufacturers do not hold themselves to the highest standard in their manufacturing process, then over time and with repeated heating cycles, ceramics can become brittle and potentially release harmful particles into the vapor. This underscores the need for the industry to move away from ceramics and adopt safer alternatives.”

    Wang views the introduction of heating chip technology, as recently launched by Greentank (see “Heated Breakthrough,” Tobacco Reporter, June 2024), as a significant step forward as it performs better on key safety metrics, including the reduction of harmful and potentially harmful constituents. “By using biocompatible materials and moving away from ceramics and heavy metal-producing heating elements, we can improve the safety and performance of vape devices. These innovations aim to minimize health risks and enhance user experience by providing cleaner and more efficient vaporization.”

    Precision dosing and dosing control, Wang stresses, are essential yet often inadequately addressed aspects of vaping technology. “Accurate nicotine delivery is crucial for both consumer satisfaction and regulatory compliance,” he says. “There is a growing demand for solutions that help users manage and reduce their nicotine intake effectively.”

    Age-Gating is Key

    Progress will be driven not only by hardware developments but also by the characteristics of nicotine. “Certain clean technologies such as synthetic nicotine could further reduce risk and improve delivery,” says Newns. “We are already seeing this rolled out in markets across the world. We believe that such development can only be a positive thing if the developments are carried out from a scientific point of view. That is, keeping in mind the nicotine user’s journey from cigarettes to safer alternatives, complying with regulation and placing responsibility to the customer and environment front of mind.”

    Wang expects novel nicotine particulates to enhance the speed and efficiency of nicotine delivery, building on the foundation laid by innovations like nicotine salts. “Nicotine salts improved the speed of delivery and provided a stronger throat hit, closely mimicking the experience of smoking combustible cigarettes,” he says. “This similarity, along with the availability of various flavors, greatly contributed to the success and adoption of reduced-risk products.”

    According to Wang, the success of flavors in helping smokers transition to e-cigarettes underscores the importance of continuing to develop advanced nicotine-delivery systems that provide a satisfying and effective alternative to traditional tobacco products.

    Preventing underage access to nicotine products will remain an important objective for manufacturers. To ensure its products never get into the hands of minors, Puff Store rolled out MyChekr, a technology that uses artificial intelligence to estimate the ages of would-be buyers (see “Beyond Face Value,” Tobacco Reporter, December 2023). The system is being adopted by a growing number of companies.

    Ispire Technologies offers an age-verification system that uses a combination of Bluetooth and blockchain technology. “This system employs biometric verification, ensuring that only authorized users can access the devices, thus preventing underage usage effectively,” says Wang. “The integration of blockchain technology sets our solution apart from the competition by offering an unparalleled level of security and transparency. Blockchain’s immutable nature ensures that all age-verification data is securely stored and cannot be tampered with, providing a trustworthy system for both consumers and regulators. The use of Bluetooth enables a seamless and efficient user experience, making our age-gating technology not only secure but also highly accessible and convenient for users.”

    Transitioning to Reusables

    Meanwhile, disposable e-cigarettes face an uncertain future due to environmental concerns, with some markets banning the entire category and others considering restrictions. “Although the U.S. may not see immediate FDA [Food and Drug Administration] mandates on disposables, the long-term trend will likely favor pod systems and reusable products, significantly reducing e-waste and aligning with environmental sustainability goals,” says Wang. “We are confident that disposable vapes will either disappear altogether or become a smaller player in the market over time. While disposables are incredibly convenient, their environmental impact is prompting a shift toward more sustainable options. Moving forward, we anticipate a greater emphasis on devices with removable batteries and the adoption of pod systems to reduce waste.”

    Newns believes that vaping companies have a responsibility to ensure that new regulatory restrictions, such as a ban of disposable vapes, do not prevent adult smokers from transitioning to safer alternatives. “We also know that disposable vapes, given the products’ convenience and price point, are vital for many adult smokers in the initial phase of the switch from cigarettes,” he says. “We hope to see regulation as a driving force for new technology and innovation to allow safer products to be developed with better inhalation techniques and quality.”

    With this in mind, he says, Plxsur remains focused on supporting customers to migrate from disposables to pod-based systems. “We have worked closely with our partner companies to put commercial strategies in place to achieve this,” says Newns. “For example, in Q4 last year, Puff, the number one vaping company in Italy and part of Plxsur, successfully migrated many of its customers to pod and open devices, with these alternative products now outperforming disposable devices by volume for the company. As we remain focused on our responsibility to reduce our environmental impact, we continue to see such efforts on migration across the group.”

    Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.