Tobacco Use Falls To 1 In 5 Adults Globally: Why WHO Says 'There Is No Time For Complacency'
Portfolio Pulse from Vandana Singh
The WHO's latest tobacco trends report shows a global decline in tobacco use, with 1.25 billion adult users in 2022, down from 1 in 3 adults in 2000 to 1 in 5 today. Brazil and the Netherlands have made significant reductions following MPOWER measures. However, the rise of vaping among youth is causing regulatory concerns. The industry faces uncertainty as health organizations endorse vaping as a smoking alternative, but regulatory scrutiny increases. Major tobacco companies like Philip Morris International Inc (PM) and British American Tobacco Industries (BTI) are wary of potential regulations on new nicotine products.
January 16, 2024 | 7:21 pm
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British American Tobacco Industries may encounter headwinds with the possibility of stricter regulations on vaping and tobacco alternatives, potentially affecting their growth and diversification efforts.
The WHO report's focus on the decline in tobacco use and the regulatory spotlight on vaping could lead to more stringent regulations. This presents a risk for BTI's alternative product lines and could negatively influence their stock price in the short term as the market assesses the regulatory risks.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Philip Morris International Inc may face challenges due to potential new regulations on vaping and other tobacco alternatives, which could impact their product strategy and market share.
The WHO report indicates a global decline in tobacco use and highlights regulatory concerns over vaping, which could lead to stricter regulations affecting PM's alternative nicotine products. This may negatively impact PM's stock in the short term as investors react to potential regulatory challenges.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80