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01/06/2022
Trends, Perspectives

Tobacco laws in SEA: Much huff and puff?

31st May 2022 marked the 35th year of World No Tobacco Day. It was created in 1987 as a campaign to raise awareness among the public about the many documented ills associated with tobacco use, including but not limited to smoking. The purpose was two-fold: informing the public on health risks while bringing to the forefront the business practices of tobacco companies. 

All the awareness, however, doesn’t hold water without stringent measures, political participation, and effective legislation. The Southeast Asia (SEA) region is particularly doing well in this regard. A WHO global report on trends in the prevalence of tobacco use highlighted that the decline in tobacco smoking among men and women has been the fastest in SEA. For men, the levels have fallen by half—25% in 2020 compared to 50% in 2000. Equally stark has been the decline of women smokers—from 8.9% in 2000 to 1.6% in 2020. This is a particularly notable accomplishment in a region that has 432 million tobacco users, the highest in the world. Moreover, 81% of the world’s smokeless tobacco users are in SEA. For the uninitiated, smokeless tobacco refers to tobacco consumption in forms other than smoking, e.g., chewing tobacco or inhaling it as dry snuff.

Globally, in terms of the average rate of tobacco use, the SEA region shows a massive decline from 50% (highest among all regions) in 2020 to 29% in 2020 and is estimated to drop further. By 2025, it is expected to hover around 26%.  A reduction by nearly half is remarkable progress, whichever way one looks at it.

All smoke, and plenty of marketing fire

The above results provide an answer to the oft-asked question when it comes to public policy around tobacco: do these measures even work? The question is now rhetorical, and it is clearly a matter of intent. Such findings also enable companies selling anti-tobacco products to tap into a market that is growing. But here’s what they are up against: the global tobacco market size as of 2021 was USD 849.9 billion and is set to continue expanding at a compound annual growth rate of 2.4% from 2022 to 2030. Then there’s also the marketing spend to consider. The Centre for Disease Control and Prevention (CDC) estimates that Marlboro, Newport, and Camel were among the highest spenders, and such marketing campaigns are particularly targeted at the youth, or the “next generation of smokers” so to speak. In the US alone, the largest cigarette and smokeless tobacco companies spent USD 8.2 billion on advertising. In fact, this enormous spending is specifically to offset the increased health consciousness among consumers.

While the figures for SEA specifically aren’t available, it is evident that the number is likely to be a staggering one, for although it is technically prohibited to market these products directly, surrogate advertising ensures that the industry is surviving and thriving. So, any company tapping into the tobacco alternatives market can expect an uphill task.

Governments take a ‘stub’ at it

Tobacco control measures have become increasingly prevalent within SEA, despite the lobbying and litigations by manufacturers. Thailand led the way in Asia by implementing plain packaging, which refers to the standardised use of brand name (devoid of logos, taglines etc), specific font, and the mandatory inclusion of health warnings. Nepal, Maldives, India, and Sri Lanka followed suit by including large-sized graphic health warnings on tobacco packs. Additionally, Bangladesh, India, Indonesia, and Sri Lanka are dissuading tobacco farmers away from growing tobacco by incentivising other crops.

Singapore recently announced that from July 1st 2022, it will ban smoking at three new types of premises,although enforcement will begin in October considering the transition period. A total of 100 sites including East Coast Beach, Tanjong Beach and Raffles Place Park will be covered by this ban, and they will be joining a list of more than 49,000 places—such as entertainment outlets, shopping malls, bus stops and common areas in residential buildings—where smoking is already banned. While Singapore has banned vaping too, this is often a challenge since e-cigarettes and related products oftentimes make their way into the country through e-commerce sites. The Health Sciences Authority (HAS) is cognisant of this rising trend. On World No Tobacco Day (May 31), illegal vape products worth over SGD 1 million were destroyed at the Tuas South Incineration Plant as part of the agency’s enforcement operations.

Neighbouring Malaysia recently went one step ahead by proposing a new law that bans both smoking and the possession of tobacco (including electronic vaporisers) for those born post-2005 in a move termed as “generational end game” for smoking.

Public support even among smokers remains unexpectedly high 

Health awareness campaigns are playing their role, and there’s support for such measures among the general populace, with many respondents (26%) advocating even stricter regulations.  

Even in the pandemic year, when stress levels were seemingly at an all-time high, 85% of Singaporeans supported the government considering a ban on smoking in residential buildings. The approval was high among non-smokers (90%), occasional smokers (86%), and ex-smokers (83%). Among smokers too, more than half (58%) expressed support.

The COVID-19 factor

While the WHO report is encouraging, showing a global decline in tobacco use with SEA leading the way and optimistic predictions for further reduction, it remains unclear whether the pandemic will affect this trend in a meaningful way. Most of the data is from the year 2000 onwards, and the predictions are till 2025, so time will tell whether it still holds up. The report concludes that given the current levels of tobacco control, it is likely that there will be a 24% reduction in tobacco consumption globally instead of the original estimate of 30%. It does, however, laud the continued efforts of governments in this regard even amidst the pandemic while cautioning them on the potential issues arising from the introduction of new products that escape regulation and legislation. Such products include but are not limited to e-cigarettes, also known as electronic delivery systems (ENDS), heated tobacco products (HTPs), and nicotine pouches. HTPs differ from the others in the sense that these contain tobacco but apparently in a form that is heated to reduce the harmful chemicals otherwise caused in greater amounts while burning in cigarettes.

The WHO report states that governments need to monitor the production and sale of these alternatives right at the beginning stages before it snowballs into an uncontrollable situation requiring further legislation and possible litigation. Such marketing tactics can cause hurdles even in the best of efforts so constant vigilance is key in order to sustain any gains made, or rather reduction achieved.

Meanwhile, the public sector, the medical fraternity, the tobacco manufacturers, and the smoke-free alternatives companies have their work cut out. While businesses and governments go about their ways though, this is a battle which, holistically speaking, affects the public the most. Even when one considers just the economics of it though, the costs of smoking are estimated to drain USD 1.4 trillion from the global economy. However, there’s more to it when one considers the fact, as elicited in the WHO report, that reducing tobacco use is “an economic, sustainable development, and human rights issue”. It is evident then that there’s a lot of planning and implementation still left to do.

To discover how Blackbox Research can help your business uncover critical insights for developing unique and effective strategies in a post-COVID-19 world, write to us at connect@blackbox.com.sg.

Author: Blackbox Research Team

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