South Korea announced today (Feb. 3) that it will extend full tobacco regulatory controls to synthetic nicotine liquid e-cigarettes from April 24, bringing them in line with conventional tobacco products following amendments to the Tobacco Business Act and National Health Promotion Act. The measures require manufacturers and distributors to include graphic health warnings on packaging and restrict advertising to limited channels, while banning promotional content targeting women or minors or highlighting flavors. The revised framework also prohibits the use of all tobacco and nicotine products, including e-cigarettes and heated tobacco, in designated smoke-free areas, with violations subject to fines of up to 100,000 won ($69). The regulatory expansion, the first major update to the tobacco definition since 1988, aims to close loopholes that previously allowed synthetic nicotine products to be marketed and sold with fewer controls, particularly amid concerns around youth access and public health risks.
Tag: tobacco
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Zimbabwe Tells Tobacco Farmers to Stop Planting, Get Tending
This week, Zimbabwe announced that it exceeded its tobacco planting target for the 2025/26 season, surpassing a record 140,000 hectares, prompting the government to urge farmers to halt further planting and focus on crop management to maximize yields and leaf quality. Agriculture Permanent Secretary Prof. Obert Jiri said late-planted dryland tobacco should be curtailed, with emphasis now on pest and disease control, weed management, and split fertilizer application amid heavy rains. A national crop and livestock assessment later this month is expected to confirm strong early performance and yield prospects, with fertilizer supplies largely adequate despite short-term top-dressing delays.
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Overseas Seizures Show Korea Used as Tobacco Smuggling Hub
South Korea’s customs agency said millions of packs of smuggled cigarettes were seized overseas last year through joint operations with foreign authorities, underscoring the country’s growing use as a transshipment hub by international smuggling networks. The Korea Customs Service (KCS) said nearly 5.2 million packs, weighing about 103 tons, were confiscated abroad after being routed through South Korea.
According to the KCS, major seizures included roughly 760,000 packs in the United States, 380,000 in Hong Kong, 260,000 in the United Kingdom, and 230,000 in Taiwan. The total far exceeds the 3.6 million packs detected overseas between 2019 and 2021, highlighting a sharp rise in cases linked to Korea-based transit routes.
A KCS official said cigarette smuggling, like drug trafficking, is a key funding source for criminal syndicates. The agency said it will further strengthen international cooperation to prevent South Korea from being exploited as a logistics hub for global illicit trade.
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Europe Helping Offset China Losses in Zimbabwe’s Tobacco Exports
Zimbabwe’s tobacco exports dipped 0.7% from the previous year to $1.36 billion (as of mid-December), thanks in part to exports to China dropping from $953.2 million to $819.3 million. Despite the 14% decline, the Far East still accounted for 60% of the nation’s total tobacco export value, all data according to the Tobacco Industry and Marketing Board (TIMB).
While traditional Asian markets cooled, a massive surge in European demand and steady growth within Africa helped offset the overall decline. The European Union emerged as the standout growth market this season, with export values skyrocketing by 64.5%, going from $103.1 million to $169.6 million. According to the TIMB, the surge reflects a growing preference for Zimbabwe’s high-quality, flue-cured Virginia leaf among continental manufacturers.
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France Seizes 15 Tons of Tobacco in International Ring Bust
French authorities dismantled an international tobacco trafficking network linked to Bulgarian nationals following a year-long investigation that began in July 2024 with the seizure of 15 tons of illicit cigarettes in western France. The operation uncovered a structured smuggling route moving illegal cigarettes from Italy and Bulgaria through France to Belgium. Investigators later seized 450 kg of cigarettes and 14.7 tons of raw tobacco at a warehouse near Brussels.
Earlier this month, police arrested the suspected convoy organizer and two lorry drivers, confiscating nearly 30 tons of counterfeit cigarettes from two trucks. Six people associated with this network have been charged with organized tobacco trafficking, criminal conspiracy, and money laundering, with three Bulgarian suspects placed in provisional detention.
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South Korea to Define All Nicotine Products as ‘Cigarettes’
South Korea’s Cabinet moved to close regulatory and taxation gaps surrounding liquid e-cigarettes, including those using synthetic or nicotine-substitute substances, amid what is says are growing safety concerns. At a Cabinet meeting today (December 16) chaired by President Lee Jae-myung, the government approved the promulgation of amendments to the Tobacco Business Act that legally classify liquid e-cigarettes as tobacco products. The revised law expands the definition of cigarettes from products made from tobacco leaves to all products containing tobacco or nicotine, bringing synthetic-nicotine liquid e-cigarettes under formal regulation.
President Lee highlighted concerns that nicotine substitutes have been distributed without adequate safety verification and called for stronger institutional oversight. Reports of suspected lung damage linked to liquid e-cigarettes were also raised during the meeting.
Deputy Prime Minister and Finance Minister Koo Yoon-cheol said products released four months after the law takes effect will be regulated and taxed as cigarettes. However, he noted regulatory limits regarding so-called “nicotine-free” products manufactured before the law’s implementation, stressing the need for separate management and hazard assessments.
The revision aims to eliminate regulatory and taxation blind spots while gradually strengthening safety management for nicotine substitutes.
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Zimbabwe Nears $1.1B From Tobacco Exports
Zimbabwe earned $1.1 billion from 201.4 million kg of semi-processed tobacco exported between January and November, according to the Tobacco Industry and Marketing Board. This compares with $1 billion from 208.4 million kg during the same period last year.
The Far East remained the top buyer, taking 89.1 million kg worth $630.7 million at an average $7.08/kg. Africa followed with 33 million kg valued at $154.6 million, while the Middle East bought 30 million kg for $88 million. The EU imported 27.2 million kg at $5.83/kg, and Europe purchased 12.8 million kg at $5.09/kg. The Americas bought 9.1 million kg, and Oceania, though a small buyer, paid the highest price at $8.45/kg.
Tobacco remains Zimbabwe’s top agricultural export and key foreign currency earner, generating $1.3 billion in 2024 and contributing roughly 30% of total exports.
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Brazil Attacking its Own Farmers, Critics Say
The International Tobacco Growers’ Association (ITGA) criticized Brazil for sending an “anti-tobacco” delegation to COP11, pointing out the hypocrisy for the third-largest tobacco grower in the world. In contrast, it pointed to Poland, which reportedly defended its 30,000 growers who held protests in Warsaw ahead of the conference.
“Farmers also highlighted the hypocrisy of reducing European production only to replace it with imports,” the ITGA wrote in its daily update. “In Geneva, Poland’s delegation reinforced these concerns with strong statements defending growers and calling for balanced policymaking.
“In stark contrast, Brazil—where more than 133,000 farming families rely on tobacco—has sent one of the most aggressively anti-tobacco delegations, showing little regard for the livelihoods at stake in its own domestic sector.”
Romeu Schneider, vice president of Afubra (the Tobacco Growers’ Association of Brazil), voiced his opposition to the Brazilian government’s tobacco policy. “Brazil should never have ratified the FCTC, as it compromises national sovereignty and threatens Brazil’s tobacco market, which is valued for its quality and volume and has promoted many social and environmental initiatives in rural communities,” he said. “Tobacco is economically and financially crucial for a developing country like Brazil, yet current policies risk ceding this market to other countries. These measures are deeply concerning and place Brazilian producers in a difficult position, prompting strong indignation from our side.”
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Zimbabwe Tobacco Industry Targets $7B by 2030
Zimbabwe’s tobacco sector is positioned for major expansion, with government projections indicating the industry could reach $7 billion by 2030. The Agriculture Food Systems and Rural Transformation Strategy 2 (2026–2030) outlines a sharp rise in the sector’s gross value contribution, which was $1.2 billion in 2025.
The Tobacco Industry & Marketing Board reported that Zimbabwe produced 340 million kg of tobacco in 2025, but the Tobacco Transformation Plan hopes to see that number reach 500 million kg by 2030. Zimbabwe is also working to greatly increase the tobacco processed domestically, as opposed to exporting 90% of it raw as it currently does. The Plan also hopes to promote new specialty tobacco varieties, including cigar, shisha, naturally cured, and dark fire-cured types.
As Africa’s largest tobacco producer, Zimbabwe’s tobacco industry supports over 130,000 households and contributes more than half of the country’s agricultural exports. More than 85% of the crop is grown by small-scale farmers, many of whom benefited from land reform.
Despite its growth potential, the sector faces significant headwinds, including global anti-smoking measures, traceability and environmental regulations, child-labor concerns, and outdated legislation. Agriculture Minister Dr. Anxious Masuka said the new strategy reflects extensive consultation across government, industry, and farming stakeholders, and is structured around ten pillars focused on policy reform, climate resilience, rural industrialization, financing, infrastructure, and land management.
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Pyxus Posts Strong Margins, Higher Guidance for Q2 2026
Pyxus International reported solid results for the second quarter 2026 ended September 30, with sales rising to $570.2 million from $566.3 million a year earlier. CEO Pieter Sikkel said the performance reflects strong execution and positions the company for a robust second half of fiscal 2026. Gross margin improved to 15.4% from 13.3%, “driven by a better product mix and higher returns on current crops.” Operating income rose to $46.7 million from $33 million, while adjusted EBITDA increased to $54.8 million from $44.3 million. Net loss narrowed to $900,000, compared to $3.2 million a year ago.
Sales and other operating revenues for the first half of fiscal 2026 decreased $122.2 million, or 10.2%, when compared to $1.2 billion for the same period last year. “The decrease was due to the impact of lower carry-over sales from the prior fiscal year not being fully offset by the acceleration of shipments from the current crop.”
Tobacco inventory rose to $1.1 billion, reflecting larger crops in Africa and South America, while uncommitted inventory remained low at 2.7% of total processed stock, signaling steady demand. The company reduced its operating cycle to 167 days from 179 days last year and reported strong liquidity with no borrowings on its $150 million credit line.
Based on its performance and improved visibility, Pyxus raised its full-year sales guidance to $2.4–$2.6 billion (from $2.3–$2.5 billion) and tightened its adjusted EBITDA range to $215–$235 million.