Illicit tobacco market poses threat to success of New Zealand tobacco ban, says GlobalData

Following New Zealand’s announced tobacco ban;

Ramsey Baghdadi, Consumer Analyst at GlobalData, a leading data and analytics company, offers his view:

“The New Zealand government has numerous challenges for the ban to be fully effective, including implementing stricter regulations on the tobacco black market and banning e-cigarettes.

“Over time, tobacco prices have increased throughout New Zealand, encouraging younger generations to switch to more affordable e-cigarettes. According to a survey by GlobalData, almost a third (31%) of new Zealand millennials and one in five (21%) Gen Z in the country claim to smoke e-cigarettes*. This is compared to 0% of the silent generation, who simply haven’t taken to the tobacco alternative. It is likely that future generations in New Zealand will still smoke e-cigarettes, despite the tobacco ban.

“Large players in the tobacco sector such as British American Tobacco have highlighted how difficult it will be to become a tobacco-free country due to the rapid growth of black market tobacco. The New Zealand government must, therefore, prepare for battle against the black market and regulate e-cigarette consumption, if they wish to be the leading example of a tobacco-free nation.”

* ‘Regularly’, ‘Occasionally’ and ‘only smoke while socializing’ responses combined

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