Image source: Nathan Hughes Hamilton/CC BY 2.0 DEED

Key Points

• Indonesia is a country in Southeast Asia, part of the World Health Organization’s South-East Asia Region.
• It is the fourth most populous country in the world, with a population in 2022 of 275.5 million.
• Tobacco use prevalence is high, particularly amongst men. 34.5% of all adults were current tobacco users in 2021, including 65.5% of men.
• Indonesia has neither signed nor ratified the World Health Organization Framework Convention on Tobacco Control. As a non-party, it is ineligible to join the Protocol to Eliminate Illicit Trade in Tobacco Products.
• The Indonesian tobacco market is dominated by local manufacturers PT Gudang Garam Tbk and PT Djarum, as well as Philip Morris International.
• Recent tobacco industry tactics in Indonesia include the use of third parties; the targeting of youth with tobacco marketing, both at point of sale and online, as well as via event sponsorship; and sponsorship of popular sports such as badminton and football.

According to the authors of a 2023 paper, “Indonesia has a high smoking prevalence that has not diminished significantly since 1990”. This has been driven by male smoking rates which remain amongst the highest in the world.¹² It is the only country in Asia to have neither signed nor ratified the World Health Organization Framework Convention on Tobacco Control (WHO FCTC),³ and nor is there any comparable national framework for tobacco control.¹ Industry interference in policymaking is ongoing, as there is no effective legal mechanism to prevent it.⁴⁵ Smoking has long been a part of Indonesian culture, particularly for men, something which tobacco companies have exploited through aggressive marketing tactics that aim to reinforce smoking as a normal or even essential masculine behaviour.⁵⁶ This high degree of social acceptability means that the government treats the industry as a legitimate stakeholder.⁷ One key challenge, therefore, is to de-normalise tobacco use, as part of a comprehensive tobacco control plan.⁷⁸

Tobacco Use in Indonesia

The link between smoking and masculinity is deeply embedded within Indonesian culture.⁸⁹ This has been reinforced by tobacco marketing which associates tobacco products with characteristics traditionally considered masculine, such as strength, heroism and self-control.⁸⁹

In 2021, tobacco use prevalence amongst adults was 34.5%; 70.2 million adults were current users of tobacco.¹⁰ Nearly two-thirds (65.5%) of Indonesian men reported using tobacco, compared to around 3% of women.¹⁰

In 2019, nearly 20% of students aged from 13 to 15 reported tobacco use.¹¹ Around 36% of males in this age group reported current tobacco use compared to 3.5% of females.¹¹

Kreteks – cigarettes consisting of tobacco, cloves and flavourings such as chocolate, dried fruit and coffee – are by far the most popular tobacco product in Indonesia. According to government figures from 2017, kreteks accounted for more than 95% of the cigarettes sold that year.¹² The cloves provide a unique flavour and smell, and also contain eugenol, a chemical compound which reduces the harshness of the smoke.¹³ In 2021, close to 30% of all Indonesian adults – around 60 million of the country’s 70 million adult tobacco users – reported smoking kreteks.¹⁰

There were an estimated 246,000 deaths attributable to smoking in 2019, accounting for nearly 15% of all mortality in Indonesia that year.¹⁴ Research published in 2022 estimated the total cost of smoking to the Indonesian economy in 2019 at between Rp184.36 trillion (US$13 billion) and Rp410.76 trillion (US$29 billion).¹⁵ The same study found that direct healthcare costs accounted for between Rp17.9 trillion (US$1.3 billion) and Rp27.7 trillion (US$2 billion), most of which is covered by the Social Security Agency for Health, equivalent to 57-59% of total direct expenditure on healthcare.¹⁵

Tobacco in Indonesia

Market share and leading brands

In 2022, market research company Euromonitor International put the value of the Indonesian tobacco market at over US$34 billion.¹⁶ It is the second-largest cigarette market in the world.¹⁷

The market leader in Indonesia is the local kretek manufacturer PT Gudang Garam Tbk (Gudang Garam), with nearly one-third of the market in 2022.¹⁸¹⁹

Its closest competitor is Philip Morris International (PMI), with a slightly smaller share.¹⁸ PMI operates in Indonesia via its subsidiaries PT Philip Morris Indonesia and PT HM Sampoerna Tbk (Sampoerna).¹⁸²⁰ At the time of its acquisition by PMI in 2005, Sampoerna was the leading tobacco company in Indonesia.²⁰²¹

PT Djarum (Djarum), another local kretek producer, has the third-largest market share, around half that of the two leading companies.¹⁸²²

Like PMI, other transnational tobacco companies have sought to expand into Indonesia by acquiring local companies. In 2009, British American Tobacco (BAT) bought an 85% stake in PT Bentoel Internasional Investama Tbk (Bentoel) – at the time the fourth largest tobacco company in the country.²¹ In 2011, the South Korean company Korea Tobacco & Ginseng (KT&G) – which has a partnership with PMI for its newer nicotine and tobacco products – bought a controlling share of Indonesia’s sixth-largest tobacco company, PT Trisakti Purwosari Makmur.²¹²³ Similarly, Japan Tobacco International (JTI) acquired two Gudang Garam subsidiaries, Karyadibya Mahardhika and its distributor, PT Surya Mustika Nusantara, in 2017.²¹ However, BAT, JTI and KT&G each had market shares of less than 2% as of 2022.¹⁸

In 2022, the top four brands of cigarette in Indonesia were all kreteks. Gudang Garam has around one-third of the market. Djarum, A Mild and Dji Sam Soe (the latter two both PMI/Sampoerna brands) each have around a one-tenth share. Others, including PMI’s premium cigarette Marlboro, have smaller shares.²⁴

• For more information on the tobacco industry in Indonesia, see the Tobacco Supply Chain Database.

Tobacco farming and child labour

Tobacco is grown in Indonesia almost entirely on small, family-run farms, and 90% of production comes from just three provinces: East Java, Central Java, and West Nusa Tenggara.²⁵

In 2021, Indonesia reported production of over 237,000 tonnes of raw tobacco, making it the fourth largest producer in the world after China, India and Brazil.²⁶ Production has varied since 2010, from a low of less than 127,000 tonnes in 2016 to a high of nearly 270,000 tonnes in 2019. However, the overall trend in recent decades has been upwards, as shown in the graph below:

Figure 1: Tobacco production, 1980 to 2021.²⁷ Source: UN Food and Agriculture Organization/Our World in Data | CC BY

The area harvested under tobacco crop also increased by over 30% between 2000 and 2020, to nearly 220,000 hectares.²⁸

A 2017 report by the World Bank found that poverty was widespread amongst tobacco farmers in Indonesia. Nearly three-quarters of tobacco farmers were poor compared to around one-tenth of the general population.²⁹ Most tobacco-farming households received some form of government social assistance, and more than 60% reported food insecurity.²⁹

Research published in 2020 found that Indonesian tobacco farmers would be better off economically if they grew other crops or pursued alternative, non-agricultural livelihoods.³⁰ Tobacco is also vulnerable to adverse weather conditions in comparison to other crops. In 2016, a period of much higher-than-average rainfall, while non-tobacco farmers made a modest income, tobacco farmers’ income was almost zero.³⁰

Tobacco-farming households had significantly higher labour costs than those growing other crops.³¹ Tobacco farmers also used child labour, both hired and household, more frequently compared to those growing other crops.³⁰ Similarly, more children from tobacco farms missed school.³⁰ Farmers reported using child labour because tobacco growing does not usually pay enough to hire adult workers.³⁰

An investigation by The Guardian in 2018 visited the village of Beleke, on the island of Lombok, where it found almost all children above the age of four doing tobacco work during harvest season.³² This followed a report by Human Rights Watch (HRW) in 2016, which stated that thousands of children work in tobacco farming in Indonesia. HRW found children engaged in dangerous work in four Indonesian provinces, interviewing more than 130. They reported serious health and safety issues, including acute nicotine poisoning as a result of handling tobacco leaves (also known as green tobacco sickness) and contact with pesticides and other chemicals.²⁵

HRW’s interviews with tobacco farmers and traders revealed a lack of human rights due diligence in the tobacco supply chain in Indonesia, particularly regarding child labour.²⁵ The farmers and traders interviewed supplied large Indonesian and transnational companies including Gudang Garam, Sampoerna, Djarum and Bentoel.²⁵

• For more information on the tobacco industry and child labour, please see the pages on CSR: Child Labour and the Eliminating Child Labour in Tobacco-Growing Foundation (ECLT).

Tobacco and the economy

Given its high level of tobacco consumption, Indonesia has long been a net importer of tobacco leaf, despite also being a major producer.³¹ In 2022, it imported over US$617 million in raw tobacco, compared to around US$266 million in exports.³³³⁴

However, it is a net exporter of cigarettes: over US$913 million in 2022, compared to US$118 million in imports.³⁵³⁶

In 2020 the WHO reported that the contribution of the tobacco industry to the Indonesian economy was relatively small; tobacco manufacturing generates just 0.6% of total employment, while tobacco farmers represent only 1.6% of the agricultural workforce. Most families involved in tobacco growing and kretek rolling also receive some form of social assistance – meaning that the Indonesian state is essentially subsidising poorly-paid employment in the tobacco industry.³⁷

Illicit trade

A study published in 2019, which collected packs of cigarettes from respondents in Indonesia, found that 20% of the 1,440 smokers surveyed reported ever smoking illicit cigarettes. However, among the 1,201 packs researchers collected, only 20 (i.e. 1.6%) had no excise stamp, a fake excise stamp, or no graphic health warning – and hence were potentially illicit. Price appears to be a factor, with people on lower incomes more likely to purchase illicit cigarettes, though consumption of illicit cigarettes was not found to be a long-term behaviour.³⁸ However, a 2021 study estimated that the share of illicit cigarette consumption in the country increased from 5% in 2013 to 19% in 2018.³⁹

Globally, Free Trade Zones (FTZs) are well known to facilitate the illicit tobacco trade.⁴⁰ There are four FTZs in Indonesia, where cigarette production and trade are exempted from excise duties, making the price much lower. Cigarettes leak from these FTZs, becoming illicit in the process, as the packs bear no excise stamps.⁴¹ In August 2023, Indonesia’s Corruption Eradication Commission announced that a senior official from the Bintan Free Trade and Port Zone had been arrested on charges of data manipulation and receiving bribes from cigarette companies, to allow greater flows of duty-free cigarettes through the zone.⁴²

Internal industry documents suggest that historically, BAT has been involved in illicit trade in Indonesia and the broader region.⁴³ A 1994 internal BAT document points to Indonesia – along with Malaysia – as a conduit of illicit products to the Philippines.⁴⁴ A BAT-commissioned study from the 1980s also documented Indonesian consumers’ preference for its smuggled products.⁴⁵

As part of the third round of the Philip Morris International initiative PMI IMPACT, PMI is funding the Institute for Development of Economics and Finance, an Indonesian think tank, to “examine the market for NTHRPs [nicotine and tobacco harm reduction products] and how to prevent illicit trade in this growing sector, with research to include surveys and limited group discussions”.⁴⁶

• For more information on PMI IMPACT, please see the following pages: PMI IMPACT, List of Successful PMI IMPACT Applicants and Organisations linked to PMI IMPACT.

Tobacco and the environment

Indonesia is the world’s second-biggest contributor to marine plastic pollution after China, responsible for 1.29 million tonnes of debris entering the ocean annually.⁴⁷ Of this waste, cigarette butts are the most commonly-littered item.⁴⁸ The Global Center for Good Governance in Tobacco Control has estimated the cost of tobacco-related marine pollution and waste management in Indonesia at Rp49 trillion (US$3.1 billion) per year.⁴⁹

• For more information, please see the page on Tobacco and the Environment and the long read on Plastics, the Environment and the Tobacco Industry.

Roadmap to Tobacco Control

Indonesia is not a party to the WHO FCTC, and is therefore ineligible to join the Protocol to Eliminate Illicit Trade in Tobacco Products. As of 2023, there appears to be little political will either to ratify the WHO FCTC or to create a comparable national framework for tobacco control. This has led to a fragmented approach across different government departments and prevented the development of coherent tobacco control policies.¹

However, Indonesia has committed to an Association of Southeast Asian Nations (ASEAN) five-year plan on health, under which it has pledged to reaffirm collective positions against industry interference and for implementation of control measures, for both tobacco and alcohol.⁵⁰

In 2009, the passage of Law No. 36 authorised the Ministry of Health to introduce tobacco control regulation, including on tobacco advertising, promotion and sponsorship (TAPS); smoke-free spaces; and packaging and labelling of tobacco products.⁵¹ This was followed in 2012 by Indonesia’s principal tobacco control law, Government Regulation 109 (PP 109/2012).⁵¹ These laws prohibit smoking on public transport, and in educational facilities and places of worship, though other types of enclosed public spaces, including workplaces, restaurants and government facilities, may provide smoking areas.⁵²⁵³ More stringent regulations at the subnational level are permitted.⁵² As of June 2023, 456 (around 86%) of Indonesia’s 520 cities and districts had adopted smoke-free policies, though implementation remains a challenge.⁵⁴

Indonesia is one of the few countries that still permits tobacco advertising on television, though it may not be broadcast until after 9:30pm.⁵²⁵¹ While Law No. 36 and PP 109/2012 also introduced graphic health warnings (GHWs) on tobacco packaging and banned misleading terms such as “light” and “low-tar”, the law was not retroactive for tobacco products that already had these words in their branding, and other misleading features – such as colours, numbers and symbols – are still permitted.⁵²⁵¹

As of 2024, various other limitations remain. There are no restrictions on internet sales or the sale of individual cigarettes (single sticks); there is no national law regulating the sale, use, advertising, promotion, sponsorship, packaging or labelling of e-cigarettes; and tobacco industry corporate social responsibility (CSR) is still permitted.⁵¹⁵³ Cigarettes in Indonesia also remain relatively cheap. In 2022, the price of the bestselling brand of cigarettes was just over US$2.⁵³

In 2018, President Widodo issued a decree containing a list of government regulations to be revised, which included PP 109/2012.⁵⁵ Tobacco control advocates have seen this as an opportunity to push for stronger regulations, such as larger GHWs, higher excise taxes on cigarettes and a comprehensive ban on TAPS.⁵⁵ However, this process has stalled, amidst conflict between different government ministries and opposition from farmers’ associations and other groups (see section “Use of third parties”).⁵⁵ As of March 2024, the revision of PP 109/2012 had yet to advance.

For more details, please see the following websites:

• Legislation by Country/Jurisdiction – Indonesia, Tobacco Control Laws, Campaign for Tobacco-Free Kids
• Country profile – Indonesia, World Health Organization, WHO report on the global tobacco epidemic 2023

Interference in Indonesia by Tobacco Industry and Allies

Tobacco industry tactics in Indonesia include the use of third parties; the targeting of youth with tobacco marketing, both at point of sale and online, as well as via event sponsorship; and sponsorship of popular sports such as badminton and football.

Use of third parties

The tobacco industry has long used third parties and front groups to advance its interests, as a means of achieving greater credibility and overcoming public mistrust.

The Indonesian Tobacco Farmers’ Association (Asosiasi Petani Tembakau Indonesia, APTI), a lobby group, opposes the WHO FCTC, and has urged the Indonesian government not to ratify the treaty.⁵⁶ It has also frequently lobbied against increases in excise taxes on tobacco products. In 2019, APTI held a rally in front of the Ministry of Finance, to demand the repeal of an increase in excise and the retail price of cigarettes, and the revision of a regulation requiring at least 50% of the Tobacco Excise Revenue Sharing Fund to be allocated to health purposes.⁵⁷

APTI has also opposed the proposed revision to Indonesia’s main tobacco control law, PP 109/2012. In 2022, in Temanggung, a major tobacco-growing region in Central Java, APTI representatives were seen at a public event displaying banners asking the local government for support in opposing the proposal.⁵⁸ APTI also sent official letters to President Widodo opposing the revision, stating that it would negatively affect the livelihoods of people working in the tobacco sector, particularly farmers.⁵⁵

Another lobby group which has opposed of any revision of PP 109/2012 is the Indonesian Tobacco Community Alliance (Aliansi Masyarakat Tembakau Indonesia, AMTI), a coalition of tobacco industry stakeholders – including cigarette manufacturers – established in 2010.⁵⁹ It reportedly has close links to the PMI subsidiary Sampoerna.⁶⁰⁶¹ AMTI has sought to portray tobacco control as an agenda imposed on Indonesia by foreign actors who do not understand the local context – a common tobacco industry tactic in the country.⁶²⁶³

Both APTI and AMTI are affiliates of the International Tobacco Growers Association (ITGA), a global front group funded and run by the ‘Big Four’ transnational tobacco companies (TTCs), as well as two major leaf merchants.⁶⁴⁶⁵⁶⁶ Though ITGA claims to defend the interests of tobacco farmers and their communities around the world, it uses tobacco farmers as a means of opposing tobacco control regulations and protecting the interests of the TTCs.⁶⁶

Controversial marketing strategies: targeting youth

The tobacco industry has long seen young people as a vital target market; tobacco use generally starts in adolescence. In Indonesia, the mean age of smoking initiation amongst males is 18.3 years, while smoking prevalence amongst Indonesian adolescents (aged 10 to 18) increased from 7% in 2013 to 9% in 2018.⁶⁷⁶⁸

In Indonesia, there is a high concentration of tobacco retailers, high exposure to point-of-sale advertising and no restriction on the display of cigarette packs in retail outlets – all of which are associated with increased tobacco use amongst adolescents.⁵³⁶⁸⁶⁹ In addition, many retailers are located close to schools; enforcement of the ban on sales to minors is very weak; while sales of single sticks, which make smoking more accessible to young people, are still permitted.⁶⁹⁶⁸⁷⁰ Retailers therefore have an important role in recruiting new, young smokers, and maintaining growth of the market.⁶⁸

Indonesia’s incomplete TAPS regulations have also allowed the tobacco industry to switch to less regulated forms of advertising such as event sponsorship and internet marketing, often targeting young people.⁷¹

For example, the popular music festival SoundrenAline, which has been running in Indonesia since 2002, was founded by Sampoerna.⁷² Following a visit to SoundrenAline 2016, researchers reported that Sampoerna branding and the slogan “Go Ahead” were found throughout the festival site. Sampoerna A brand cigarettes were widely sold, including by cigarette girls and boys – a form of direct one-on-one marketing.⁷¹⁷³ Cigarettes that were not a Sampoerna brand were confiscated at the entrance.⁷¹ As of 2022, Sampoerna was still the sponsor of the event and owner of the registered trademark for “SoundrenAline”.⁷²

With over 111 million users, Indonesia has one of the world’s largest Instagram audiences, over half of whom are aged between 13 and 24.⁷⁴ According to the Tobacco Enforcement and Reporting Movement (TERM), as of 2023, around 70% of online tobacco marketing in Indonesia took place on Instagram.⁷⁵⁷⁶ Most of this marketing is indirect and community based. Rather than display their products directly, the tobacco companies build online communities of followers with a common interest such as music, travel or sport, as a means of improving brand visibility and indirectly promoting their products.⁷⁶⁷⁵

Controversial marketing strategies: sponsorship of popular sports

Tobacco industry sponsorship of sport is as old as professional athletic competition itself.⁷⁷ It aims to create links between pre-existing associations people may have with sports (such as fun, excitement, strength, etc.) with tobacco branding and products; promote an image of tobacco use as normal and healthy; and appeal to young people.⁷⁸

In Indonesia, TAPS has historically been very widespread in popular sports.⁷⁹ Badminton, for instance, which the New York Times has described as part of Indonesia’s “national identity”, has long been a vehicle for tobacco industry sponsorship.⁸⁰ From 2006, Djarum was the corporate sponsor of the national badminton trials for children and adolescents aged from 5 to 18.⁸¹ The trials were shown on national television, and participants were required to wear clothing which displayed the Djarum logo.⁶⁸⁸¹

Ten civil society organisations reported Djarum to the National Commission on Child Protection, arguing that the sponsorship violated Indonesia’s child protection law.⁸¹ In 2019, Djarum agreed to remove its logos from the badminton trials.⁸²⁸³ It also withdrew its sponsorship from future trials, which critics argued would undermine development of young talent. However, in 2021 the state-owned telecommunications firm Telkom replaced Djarum as sponsor.⁸¹

Djarum owns the PB Djarum badminton club in Kudus, Central Java, which has a youth academy, as well as a club in Jakarta.⁸⁰⁷⁵⁸⁴ The company also continues to market itself and its products indirectly via Djarum-associated social media accounts which focus on badminton-related content.⁷⁶⁷⁵

An investigation into tobacco marketing on social media in Indonesia, India and Mexico around the 2022 FIFA World Cup found that 92% of the football-themed tobacco marketing originated from Indonesia, with 81% being produced by Djarum alone.⁷⁹

Both Gudang Garam and Djarum, via their respective brands Intersoccer and Super Soccer, sponsored live World Cup viewing parties. Super Soccer, which describes itself as the “home of soccer fans in Indonesia”, promotes its activities on social media to hundreds of thousands of followers.⁷⁹ It developed a “Soccerphoria” event series and campaign specifically for the World Cup, which were heavily promoted across its accounts. As well as the live viewing parties, these events involved mural painting, branded clothes, and limited-edition World Cup cigarette packs designed by local artists.⁷⁹

In 2019, Djarum bought the Italian Serie B club Como 1907, via its subsidiaries SENT Entertainment Ltd and Mola TV. Mola, a television streaming service, has broadcast a reality TV series following 24 young footballers trying to succeed at Como 1907.

• For more on this topic please see the pages on Football Sponsorship and Social Media.

Relevant Links

• Indonesia factsheet, Tobacco Atlas
• Indonesia Tax Scorecard, Tobacconomics
• Dashboard Kawasan Tanpa Rokok [Smoke-Free Area Dashboard], Indonesia Ministry of Health
• Situation reports: Indonesia, Tobacco Enforcement and Reporting Movement, Vital Strategies
• Indonesia, Southeast Asia Tobacco Control Alliance
• Front Groups Indonesia, Southeast Asia Tobacco Control Alliance

Tobacco Tactics Resources

• Flavoured and Menthol Tobacco in LMICs
• Greenwashing
• Gudang Garam and sports endorsement
• Lobby Groups
• Tobacco Industry Tactics

References

The post Indonesia Country Profile appeared first on TobaccoTactics.

Image source: Luis Barrios/CC BY-NC-ND 2.0

Key Points

• Mexico is a country in North America, covered by the World Health Organization’s Regional Office for the Americas.
• It has a population of over 127.5 million with current smoking prevalence of 19% amongst the population aged 20 and over.
• Mexico ratified the World Health Organization Framework Convention on Tobacco Control in 2004. It has not joined the Protocol to Eliminate Illicit Trade in Tobacco Products.
• The Mexican tobacco market is dominated by the big transnational tobacco companies, particularly Philip Morris International and British American Tobacco.
• Recent tobacco industry tactics in Mexico include the use of third parties; the targeting of youth with marketing for newer nicotine and tobacco products, particularly on social media; and corporate social responsibility, including during the COVID-19 pandemic.

Mexico significantly reduced smoking prevalence between 2002-2009, in the years around ratification of the World Health Organization Framework Convention on Tobacco Control (WHO FCTC).⁸⁵⁸⁶⁸⁷ However, between 2009 and 2016 there was no further progress. This may be explained by ongoing industry interference, such as on price and tax; the introduction and rapid growth of flavour capsule cigarettes; as well as challenges involved with implementation of Mexico’s main tobacco control law.⁸⁷⁸⁸ In more recent years, Mexico has redoubled its efforts, passing a major amendment to its tobacco control law in 2021 which significantly increased compliance with the WHO FCTC.⁸⁹ Mexico now has some of the most comprehensive tobacco control regulation in the world.⁸⁹⁹⁰

Tobacco Use in Mexico

In 2022, the population of Mexico was over 127.5 million.⁹¹ According to the 2021 National Health and Nutrition Survey on COVID-19 (ENSANUT), prevalence of current smoking in the Mexican population aged 20 and over was just over 19%. There is significant difference between males and females, with nearly 30% of men reporting current smoking compared to around 9% of women. Prevalence of current smoking amongst Mexican youth aged from 10 to 19 was less than 5%, with 7.5% of males in this age range smoking compared to less than 2% of females.⁹²

There were an estimated 48,400 deaths attributable to smoking in 2019, accounting for 6.6% of all mortality in Mexico that year.⁹³ A study published in 2021 estimated the total cost of tobacco use to the Mexican economy at US$8.2 billion per year. US$5.1 billion is spent on treating diseases associated with tobacco use – equivalent to 9.3% of the annual health budget. The US$1.9 billion that Mexico receives in revenue from the tobacco industry covers just 38% of the burden of tobacco use.⁹⁴

Since 2008, Mexico has prohibited sale, distribution and promotion of any product that resembles a cigarette, which has been applied to e-cigarettes and heated tobacco products (see section “Roadmap to Tobacco Control”).⁹⁵⁹⁶ Even so, in the 2021 ENSANUT survey, current use of e-cigarette by adults aged 20 and over was 1.6% (2.5% for males; 0.7% for females). Amongst youth aged 10 to 19, prevalence was slightly higher, at 1.8% (2.4% for males; 1.1% for females).⁹² A 2022 survey by the National Commission Against Addictions estimated that five million Mexicans between the ages of 12 and 65 had used e-cigarettes at some point, with 975,000 being current users.⁹⁷

Tobacco in Mexico

Market share and leading brands

In 2022, market research company Euromonitor International estimated the Mexican tobacco market to be worth nearly 89 billion Mexican pesos (US$4.5 billion), mostly accounted for by cigarette sales.⁹⁸ The market is dominated by the big transnational tobacco companies (TTCs), particularly Philip Morris International (PMI) and British American Tobacco (BAT), and to a much lesser extent Japan Tobacco International (JTI). Between them, these three companies accounted for virtually all legal cigarette sales in 2022. PMI is the market leader with just over 60%, followed by BAT with just under 36%. JTI’s share was 4%.¹⁸

As of 2022, the top six brands in Mexico were all manufactured by either PMI or BAT. By far the most popular cigarette was PMI’s premium brand Marlboro, with a market share of over 48%. This was followed by BAT’s mid-range cigarette Pall Mall, with under 22%. All other brands had a share of less than 10%.⁹⁹

• For more information on the tobacco industry in Mexico, see the Tobacco Supply Chain Database.

The use of flavour capsule cigarettes is particularly high in several Latin American countries, including Mexico, where their share of the market has risen year on year since 2012.¹⁰⁰ Although they were only introduced in 2011, flavour capsule cigarettes accounted for nearly 28% of the cigarette market in 2022 – amongst the highest proportions in the world.⁸⁷¹⁰¹ Research has shown that flavour capsules increase the appeal of cigarettes and stimulate a desire to try them, particularly amongst young people.¹⁰¹¹⁰²

• For more information, see Flavoured and Menthol Tobacco in LMICs.

Tobacco farming and child labour

Tobacco growing in Mexico has fallen considerably since 1980, when it produced nearly 94,000 tonnes of leaf, to under 7,000 tonnes in 2010 (see Figure 1). However, in 2010 production started to increase again, rising to over 15,000 tonnes by 2012, since when the figure has remained roughly stable.¹⁰³

Figure 1: Mexican tobacco production, 1961 to 2020.¹⁰⁴ Source: UN Food and Agriculture Organization/Our World in Data | CC BY

Similarly, in 1980 the harvested area was 42,000 hectares, falling to 4,000 hectares in 2010, but up to 7,000 in 2020.¹⁰³

A series of exposés in the 1990s revealed widespread use of child labour on Mexico tobacco farms, as well as the use of banned agrochemicals and poor living and working conditions for tobacco pickers. While the industry claims much has changed since then, an investigation by The Guardian in 2018 found children working on seven out of the ten farms the report visited in the state of Nayarit, Mexico’s main tobacco growing region. The farms featured in the investigation were supplying PMI, BAT and Universal Leaf Tobacco.¹⁰⁵

• For information on tobacco industry responses to accusations of complicity in child labour, please see the pages on CSR: Child Labour and the Eliminating Child Labour in Tobacco-Growing Foundation (ECLT).

Tobacco and the economy

Mexico is a net exporter both of tobacco leaf and cigarettes. According to UN Comtrade, it exported approximately US$7.1 million in raw tobacco in 2022, compared to around US$2.4 million in imports.¹⁰⁶¹⁰⁷

A 2021 report on the impacts of tobacco tax, published by the Center of Research on Food and Development (CIAD), which bases its calculations on the Secretariat of Economy’s Online Tariff Information System, puts the figure for cigarette exports in 2019 at close to US$180 million, compared to imports of over $10 million.¹⁰⁸ This corresponds to customs data from Descartes Datamyne, which put cigarette exports for 2020 at over $168 million, compared to imports of US$10.7 million.¹⁰⁹ However, the Comtrade figure for cigarette exports in 2020 is much lower.¹¹⁰ No import data is available on Comtrade for that year.

According to the CIAD report, seventy per cent of Mexican cigarette exports served the Canadian market, 15% the Colombian market, and 11% Central American markets.¹⁰⁸ Customs data also indicates these are the main export destinations for cigarettes manufactured in Mexico.¹⁰⁹

The CIAD report also states that the tobacco industry is a relatively small sector of the Mexican economy, employing just 0.1% of the national workforce in 2018.¹⁰⁸

Illicit trade

In a 2021 study which measured the Mexican illicit tobacco trade using two methodologies, illicit cigarettes accounted for 8.8% of total consumption based on an analysis of discarded packs, and 7.6% based on a survey of smokers. Both results are significantly lower than the figure of 16.6% which is widely publicised by the tobacco industry.¹¹¹ While the figures obtained via both methodologies represent an increase from previous estimates of illicit cigarette consumption – 0.5% in 2009 and 2.7% in 2015 – they are lower than the global average and lower than the figure for other countries in Latin America such as Brazil, Chile and Uruguay.¹¹²¹¹³ A previous study also found wide geographical variation across the country: for example, in Hermosillo, Sonora, just 0.3% of total cigarette consumption was illicit, while in León, Guanajato, the figure was as high as 27.5%.¹¹²

There is also an illegal e-cigarette market. Between January 2021 and June 2022, Mexican authorities seized over 60,000 devices, suspending the activities of nearly 180 retail outlets.¹¹⁴

Tobacco and the environment

Mexico produces around 40 billion cigarettes annually. This consumes between 109 and 205 billion litres of water and between 73 and 114 million kilowatts of energy. It also generates CO₂ emissions of between 20,000 and 29,000 tonnes. Around 55 million cigarette butts are discarded every day in Mexico, at an estimated cost of close to US$140 million annually.¹¹⁵

• For more information, please see the page on Tobacco and the Environment and the long read on Plastics, the Environment and the Tobacco Industry.

Roadmap to Tobacco Control

Mexico was the first country in the Americas to ratify the WHO FCTC in 2004.⁸⁶ However, it has not joined the Protocol to Eliminate Illicit Trade in Tobacco Products.¹¹⁶

In 2008, The General Law on Tobacco Control came into force, containing most of the provisions established in the WHO FCTC.¹¹⁷ However, it left some significant loopholes. While smoking was completely prohibited indoors in primary and secondary schools, and in federal government facilities, workplaces and other buildings with public access were permitted to provide designated smoking areas. Similarly, the law banned most forms of tobacco advertising, promotion and sponsorship, but made an exception in cases where it was aimed exclusively at adults.¹¹⁸ Some stricter regulation was introduced at subnational level. For example, Mexico City passed its own 100% smokefree law in February 2008 and in the following years 14 states followed suit.¹¹⁹¹²⁰

In 2021, the Mexican Senate unanimously approved a key amendment to the 2008 General Law, which banned smoking in all enclosed public spaces and workplaces, as well as banning all forms of tobacco advertising.⁸⁹ A further update, which came into force in January 2023, extended smoke-free legislation even to open-air environments where there may be public gatherings, such as parks, beaches and restaurant terraces. It also bans the display of tobacco products in all retail outlets.^90121122 With these two measures, Mexico made important progress towards full compliance with the WHO FCTC.⁸⁹

Mexico has taken a tough stance on newer nicotine and tobacco products. Since 2008, there has been a ban on any product that resembles a cigarette.^123124125 Regulators have applied this law to e-cigarettes and heated tobacco products (HTPs), but it has been contested by both retailers and tobacco companies.⁹⁵¹²³ In 2020, the government banned imports of e-cigarettes and HTPs, bringing customs law into line with existing health regulations.¹²⁶ Though a decree published by the Secretariat of Economy in July 2021 created an exception for HTPs, this was reversed by a new presidential decree in October of the same year.¹²⁷¹²⁸

Finally, on World No Tobacco Day in May 2022, President Andrés Manuel López Obrador signed a decree imposing a total ban on “circulation and marketing” of e-cigarettes and HTPs. This effectively makes the import and sale of these products illegal in Mexico.¹²³¹²⁹

For more details, please see the following websites:

• Legislation by country – Mexico, Tobacco Control Laws, Campaign for Tobacco Free Kids
• Mexico, WHO FCTC implementation database, WHO FCTC Secretariat
• Country Profile – Mexico, World Health Organization, WHO report on the global tobacco epidemic 2023

Tobacco Industry Interference in Mexico

Tobacco industry tactics in Mexico include the use of third parties; the targeting of youth with marketing for newer nicotine and tobacco products, particularly on social media; and corporate social responsibility, including during the COVID-19 pandemic.

Use of third parties

Tobacco companies often lobby via industry and trade associations, think tanks, front groups and other third parties, including public relations (PR) companies and professional lobbyists.

In Mexico, the Confederación Patronal de la República Mexicana (COPARMEX) is an employers’ union, which brings together businesses of all sizes and from all sectors.¹³⁰ In 2021, Philip Morris International (PMI) listed COPARMEX as one of the business and trade organisations in which it held a leadership role.¹³¹

In May 2022, Mexico held a public consultation on an update to its revised tobacco control law, regarding proposals to completely ban the display of tobacco products at points of sale, and to further restrict designated smoking areas to limited open-air environments.¹²¹ COPARMEX’s submission to the consultation argued that cost of implementing these measures would be high and adversely impact the owners of small businesses; that the proposals violated the right to free trade; and that they would fuel the growth of the illicit trade.¹³²

The National Tobacco Industry Council (CONAINTA) – of which PMI, BAT and JTI are all members – also opposed these measures, arguing that they would have a negative impact on the national economy, including on tobacco growing communities; that they violated consumer rights; and that they would endanger jobs and investment.¹³³ In 2023, the president of CONAINTA warned that there would be a “storm” of legal appeals against the updated tobacco control law.¹³⁴

Controversial marketing: targeting youth

The tobacco industry has long seen young people as a vital target market; tobacco use generally starts in adolescence. According to the 2016-7 National Survey of Drugs, Alcohol and Tobacco Consumption, the average age of initiation for daily tobacco consumption in Mexico was less than 20 years old.¹³⁵

Mexican media have documented tobacco companies targeting young people with marketing for newer nicotine and tobacco products via social media. From around 2018, industry hashtags – such as #FuturoSinHumo (“#SmokeFreeFuture”) and #EligeElCambio (“#ChooseChange” – both PMI) and #vypefriends and #govype (both BAT) began to appear on posts by popular Mexican actors, influencers, comedians and others.¹³⁶¹³⁷ Products such as PMI’s HTP IQOS and BAT’s e-cigarette Vype (since rebranded as Vuse) featured visibly in this content, though often company sponsorship was not made explicit.¹³⁶

Even before the General Law on Tobacco Control was amended in late 2021, it prohibited tobacco advertising, promotion and sponsorship in all but three circumstances: in adult magazines, in adult-only establishments, or in personal correspondence to adults via post. It also specifically prohibited the online marketing of tobacco products.¹¹⁸ According to a lawyer at the Centro de Investigación y Docencia Económicas, “these products must comply with the General Law on Tobacco Control, which clearly establishes a near-total ban on this publicity.”¹³⁶

A 2022 study on exposure to e-cigarette advertising and the social acceptability of e-cigarette use in Mexico identified online advertising as one of the channels of exposure most significantly associated with a higher likelihood of perceiving e-cigarettes as socially acceptable.¹³⁸ According to a researcher at the National Institute of Public Health – one of the authors of the study – the industry’s aim is the “renormalization” of nicotine consumption amongst young people.¹³⁶

• See also the page on PMI’s Futuro Sin Humo campaign.

The tobacco industry has also sponsored motorsports in Mexico. In the 2022 Mexico City Grand Prix, held in October, the McLaren cars displayed BAT’s Vuse branding – in an apparent violation of the comprehensive ban on e-cigarettes brought in just months beforehand.¹³⁹ Motorsport sponsorship is a longstanding and well-documented promotional strategy aimed at young people, particularly boys and young men.¹⁴⁰

Corporate social responsibility

Tobacco companies often use corporate social responsibility (CSR) initiatives to enhance their public image and corporate reputation.

In 2018, PMI’s local subsidiary Philip Morris México (PMM) set up a partnership with a local start-up, Eco Filter, which uses biotechnology to recycle cigarette butts.¹³⁶¹⁴¹ This partnership involves clean-up and collection initiatives which target young people, with events taking place at concerts, parks and universities. Eco Filter also delivers presentations to young people in which it displays PMI logos, and has used the social media hashtag and PMI slogan #FuturoSinHumo.¹³⁶¹⁴² Eco Filter states that it does not promote PMI’s products or encourage nicotine consumption amongst young people.¹³⁶

In 2021, Eco Filter opened a new factory in Guadalajara, Jalisco, with support from PMM.¹⁴¹¹⁴³ It will process waste from PMM’s manufacturing facility near Guadalajara, as well as cigarette butts from the street.¹⁴⁴¹⁴⁵

• See also Cigarette Filters.

Both PMI and BAT carried out extensive corporate social responsibility (CSR) activities in Mexico during the COVID-19 pandemic. In May 2020, PMI donated electric beds, vital signs monitors and ventilators to a hospital in Guadalajara. PMI also donated money for personal protective equipment (PPE) for healthcare professionals, and meals to a public welfare institution.¹⁴⁶ BAT joined a programme called UNIR y DAR (“UNITE and GIVE”) with other local companies in Nuevo León, where BAT México is headquartered. As part of an initiative called #RespiraNL, these companies made donations for PPE.¹⁴⁷ BAT also provided food supplies in Guadalupe, Nuevo León.¹⁴⁸

There are also CSR initiatives on child labour in Mexico. For example, since 2001 BAT has run a programme called “Florece” (meaning “Blossom” or “Flourish” in English), which provides day centres for the children of workers in the tobacco fields of Nayarit.¹⁴⁹¹⁵⁰

• For more on tobacco industry activity during the pandemic, please see the COVID-19 Tobacco Tactics page and the COVID-19 monitoring database.

Relevant Links

• III Índice Regional de Interferencia de la Industria Tabacalera en países de América Latina y el Caribe 2023, Corporate Accountability, Global Center for Good Governance in Tobacco Control
• Mexico – Tobacco Industry Interference Index 2021, Global Center for Good Governance in Tobacco Control
• Interferencia de tabacaleras en México: reporte de índice regional, Salud Justa, 2021
• Mexico: the long road to Tobacco Control, Pan American Health Organization (PAHO)
• Mexico – Cigarette Tax Scorecard, Tobacconomics
• Tobacco Industry Interference in Mexico, STOP
• México, Organización Panamericana de la Salud

Tobacco Tactics Resources

• E-cigarettes: British American Tobacco
• Futuro Sin Humo
• Flavoured and Menthol Tobacco in LMICs
• PMI’s IQOS: Use, “Switching” and “Quitting”

TCRG Research

• Developing more detailed taxonomies of tobacco industry political activity in low-income and middle-income countries: qualitative evidence from eight countries, B.K. Matthes, K. Lauber, M. Zatoński, L. Robertson, A.B. Gilmore, BMJ Global Health 2021;6:e004096.

For a comprehensive list of all TCRG publications, including research that evaluates the impact of public health policy, go to TCRG publications.

References

The post Mexico Country Profile appeared first on TobaccoTactics.

Image source: © Guillaume Piolle/CC BY 3.0

Key Points

• Lebanon is located on the eastern shore of the Mediterranean Sea. It is served by the World Health Organization’s Regional Office for the Eastern Mediterranean (EMRO).
• It has a population of 5.5 million, with an estimated tobacco use prevalence for those aged 15 and over of 39%.
• Lebanon ratified the WHO Framework Convention on Tobacco Control (WHO FCTC) in 2005. It has not ratified the Protocol to Eliminate Illicit Trade in Tobacco Products.
• Lebanon has a state-owned tobacco monopoly, the Regie Libanaise de Tabacs et Tombacs, known as the Regie, which controls the domestic market. Transnational tobacco companies only have access to the Lebanese market through the Regie.
• In recent years, tobacco industry lobbying has prevented the introduction of graphic health warnings; the Regie has sought to influence Lebanon’s delegation to the Conference of the Parties (COP) to the WHO FCTC; and the industry has conducted extensive corporate social responsibility activities, some of which have involved Lebanese state institutions.

Lebanon has some of the highest rates of tobacco use in the world. It is ranked third in the world for cigarette consumption per capita.¹⁵¹ A 2019 survey also suggested that waterpipe use prevalence is particularly high, and higher amongst women than men.¹⁵² Tobacco products were easily affordable until the start of Lebanon’s economic crisis in 2019.¹⁵¹ Though they have become less affordable since then, the decline in affordability has been weaker compared to that for other goods.¹⁵³ At just 9.9% of the retail price, the tax imposed on tobacco products falls well short of the 75% recommended by the World Health Organization (WHO).¹⁵⁴¹⁵⁵ Though a comprehensive tobacco control law was introduced in 2011, there have been major challenges with implementation and enforcement.¹⁵⁶

Tobacco Use in Lebanon

In 2022, the population of Lebanon was 5.5 million.¹⁵⁷ In 2019, the WHO estimated overall tobacco use prevalence to be 39% amongst the population aged 15 and over, based on all national survey data from 1990.¹⁵⁸ An academic study carried out in 2019 found similar results. Based on a cross-sectional household survey, it found prevalence of cigarette smoking among adults aged between 18 and 69 of just over 35% (49% males; 21.5% females).¹⁵² It also found overall waterpipe use prevalence of 39.5%, and at over 46%, prevalence for women was higher than for men (nearly 33%).¹⁵² Almost half of current cigarette smokers reported smoking more than 20 cigarettes per day, while most waterpipe users smoked at least three sessions per week.¹⁵²

In 2017, Lebanon reported tobacco use among boys aged 13-15 of 35% – the highest amongst the 19 EMRO countries which carried out the Global School-based Student Health Survey between 2001 and 2018.¹⁵⁹ The corresponding figure for Lebanese girls that year was 28%.¹⁵⁹ A study carried out amongst Lebanese adolescents aged 11 to 18 between 2016 and 2017 found ever use of waterpipe of 34%.¹⁶⁰

There were an estimated 7,810 deaths attributable to smoking in 2019, accounting for over 23% of all mortality in Lebanon for that year.¹⁶¹ A study published in 2014 put the economic burden of tobacco use in Lebanon in 2008 at US$326.7 million, or 1.1% of national GDP.¹⁶²

A 2019 study on e-cigarette use amongst school and university students aged from 17 to 23 found that 14.5% reported ever use, with 8% reporting current use.¹⁶³ However, at the time of writing, data on e-cigarette use amongst Lebanese adults remains scarce.

Tobacco in Lebanon

The Lebanese state tobacco monopoly

The Lebanese tobacco industry is controlled entirely by a state-owned company, the Regie Libanaise des Tabacs et Tombacs (referred to here as “the Regie”).¹⁶⁴¹⁶⁵ The Regie has exclusive rights to tobacco manufacturing and distribution, tobacco imports and exports, and to the purchase of locally grown tobacco leaf. It also oversees an anti-smuggling unit.¹⁶⁶ The Regie distributes local and imported tobacco products to licensed wholesalers, at prices it determines with the Ministry of Finance (MoF).¹⁶⁶¹⁶⁷ These wholesalers then sell the tobacco products to retailers across Lebanon.¹⁶⁶ Though these retailers are also licensed by the Regie, they are not under its direct control and largely depend on the wholesalers for their tobacco supply.¹⁶⁶ The Regie sets the profit margin and weekly quota of sold tobacco for both wholesalers and retailers.¹⁶⁶

Overseen by the MoF, the Regie’s performance has a direct impact on the public treasury.¹⁶⁶ Not only does this provide the Regie with significant access to policy makers, it also creates conflict with other government departments (such as Health), as the MoF may oppose measures which damage the Regie’s profitability.¹⁶⁶¹⁵⁶

Market share and leading brands

As of 2022, the Regie had a share of over 55% of the tobacco market, up from 45% in 2017.¹⁸ The leading transnational tobacco company (TTC) in Lebanon was Philip Morris International (PMI), with a market share of nearly 15%, followed by Japan Tobacco International (JTI) on over 11%, Imperial Brands on almost 10%, and British American Tobacco (BAT) on 6.5%.¹⁸

Transnational tobacco companies (TTCs) only have access to the Lebanese market via the Regie. In return for purchasing Lebanese tobacco leaf, the Regie imports manufactured tobacco products to sell on the Lebanese market and buys Virginia tobacco leaf for the manufacture of local brand cigarettes.¹⁶⁶ Since 2016, international brands have also been made in Lebanon at Regie manufacturing facilities, as per agreements with the Big Four TTCs.^168169170171

The Regie brand Cedars is by far the most popular brand of cigarettes in Lebanon, with a market share of 55% in 2022.⁹⁹ PMI’s Marlboro is in second place with a share of around 14%.⁹⁹ JTI’s Winston is third (8%), followed by BAT’s Kent and Imperial Brands’ Gitanes (both around 5%).⁹⁹ All other brands have a market share of 3% or less.⁹⁹

Tobacco farming and child labour

In 2020, tobacco was being cultivated on 1.32% of Lebanon’s agricultural land.¹⁷² In 2021, tobacco production was just over 10,000 tonnes, down slightly from a high of 12,800 tonnes in 2001.¹⁷³ This makes Lebanon the fifth-largest tobacco producer amongst the 14 EMRO countries for which data is available.¹⁷⁴

Lebanese tobacco leaf is purchased exclusively by the Regie via a price support programme, under which the Regie purchases from farmers at a given yearly price and quantity which is determined by the MoF.¹⁶⁶ According to Hamade (2014), the price paid is well over the average paid to farmers in other sectors in Lebanon; essentially, it is a subsidy which reinforces farmers’ dependence on tobacco growing and disincentivises any transition towards other crops.¹⁶⁴¹⁶⁶

Lebanese tobacco featured on the 2022 List of Goods Produced by Child Labor or Forced Labor produced by the U.S. Department of Labor.¹⁷⁵ Tobacco production is very labour intensive and involves all or most members of the household, which includes women and children.¹⁶⁴ On top of enduring poor wages and working conditions, female workers are also at risk of sexual violence in tobacco-growing communities.¹⁷⁶

• For information on tobacco industry responses to accusations of complicity in child labour, please see the pages on CSR: Child Labour and the Eliminating Child Labour in Tobacco-Growing Foundation (ECLT).

Tobacco and the economy

Lebanon is a net importer of raw tobacco. According to Comtrade data, in 2022, it imported over US$40.5 million in raw tobacco, compared to under US$16.4 million in exports.¹⁷⁷¹⁷⁸

Lebanon is also a net importer of cigarettes. In 2022, Lebanese cigarette imports were nearly US$16.5 million, compared to less than US$1 million in exports.¹⁷⁹¹⁸⁰

It is also a net importer of waterpipe tobacco. Its imports were worth US$17.3 million in 2022, compared to exports of under US$70,000.¹⁸¹¹⁸²

Illicit trade

Industry documents suggest that illicit trade was used by the TTCs as a means of building market share and furthering regional expansion during the Lebanese Civil War (1975-1990).¹⁸³ With governance weak and legal cigarette production in decline, the TTCs flooded the Lebanese market with cheap contraband products.¹⁸³ Though the government made direct appeals to these companies, requesting that they stop supplying distributors involved in this illicit trade, it had little effect.¹⁸³ The documents also show that the TTCs sought to use the issue of illicit trade as leverage in negotiations on establishing manufacturing presence in the country.¹⁸³

Today, reliable data on the scale of the illicit trade in Lebanon are not available. An industry-funded report by the consultancy Oxford Economics (OE) indicated that by the first quarter of 2019 the illicit trade accounted for 28.1% of the market in tobacco products.¹⁸⁴¹⁸⁵ However, this data may not be reliable given OE’s long relationship with the tobacco industry. Not only was this particular study funded by PMI, BAT and JTI, but also prepared according to terms of reference agreed with all three companies.¹⁸⁵ These terms of reference are not disclosed, while the methodology used is highly susceptible to industry interference.¹⁸⁶

Exaggerating the scale of illicit trade is a well-documented tactic which has been used by the tobacco industry all over the world as a means of opposing tobacco control regulations. See Illicit Tobacco Trade for further details.

• For more information on the tobacco industry in Lebanon, please see the Tobacco Supply Chain Database.

Roadmap to Tobacco Control

Lebanon ratified the WHO FCTC in 2005.¹⁸⁷ It has yet to ratify the Protocol to Eliminate Illicit Trade in Tobacco Products.¹⁸⁸

In August 2011, Lebanon passed Law No. 174, its first ever tobacco control law.¹⁵⁶ This was the result of years of advocacy led by the National Tobacco Control Program (NTCP) (a government organisation within the Ministry of Public Health), alongside academics, tobacco control advocates, civil society organisations, local and international NGOs, and policy makers.¹⁵⁶ Law No. 174 banned smoking in all indoor public spaces; banned tobacco advertising, promotion and sponsorship; and introduced larger text warnings on tobacco products, with the potential to add graphic health warnings at a later date.¹⁵⁶

However, enforcement remains a challenge, particularly regarding the provision for smokefree spaces. This measure was properly enforced for just three months, thanks in part to strong lobbying from restaurants and other establishments offering waterpipe.¹⁵⁶ There has also been a lack of political will to enforce the law.¹⁵⁶ In late 2012, the then Minister of the Interior implied that the police would be flexible about enforcing the law during the holiday period.¹⁸⁹ The Ministry of Tourism also stopped enforcing the law, alleging a negative impact on Lebanon’s tourist industry and stating that it did not have the resources necessary to monitor implementation.¹⁵⁶¹⁹⁰

For more details, please see the following websites:

• Legislation by country – Lebanon, Tobacco Control Laws, Campaign for Tobacco Free Kids
• Lebanon, WHO FCTC Implementation Database, WHO FCTC Secretariat
• Country profile – Lebanon, World Health Organization, WHO report on the global tobacco epidemic 2021

Tobacco Industry Interference in Lebanon

Tobacco industry tactics in Lebanon include lobbying, which has prevented the introduction of graphic health warnings; attempting to influence Lebanon’s delegation to the Conference of the Parties (COP) to the WHO FCTC; and corporate social responsibility.

Portraying tobacco as a symbol of resistance

Part of the revenue the Regie collects from imported tobacco products is used to cover the subsidies given to tobacco growers in rural areas, particularly in the south of the country.¹⁶⁶¹⁵⁶ Given that this area was previously occupied by Israel, keeping farmers on this land is seen by the state as an important geopolitical objective.¹⁵⁶ Indeed, both Nassif Seklaoui, Chairman and General Manager of the Regie, and the speaker of the Lebanese parliament, have explicitly linked tobacco growing to the struggle of the Lebanese people and their resistance to foreign occupation.¹⁹¹ Such strategies aim to instil the belief that tobacco is a strategic industry and a source of national pride. As the opening statement of a Regie pamphlet from 2011 reads, “The tobacco crop has become a symbol of resilience, resistance and people’s attachment to the Nation’s land.”¹⁶⁴

Influencing policy: health warnings

Law 174 significantly increased the size of the textual health warnings on tobacco products in Lebanon, from 15% to 40% of the principal surface areas.¹⁵⁶¹⁹² A further decree in 2012 defined the text of the warnings, though implementation was delayed, reportedly due the Regie lobbying the Minister of Finance.¹⁹³¹⁹⁴ Since then, the larger text warnings have been widely implemented – though the measure still falls short of the 50% or more coverage recommended by the WHO FCTC.¹⁹⁵¹⁹⁶

Law 174 did also allow for the introduction of graphic health warnings (GHWs) at a later date, subject to the signing of an implementation decree by the Ministry of Health and the Ministry of Finance.¹⁹⁵ According to Lebanese tobacco control advocates, of all provisions in Law 174, this was the hardest to obtain, due to fierce opposition from the tobacco industry, including the Regie.¹⁹⁴ During discussions on Law 174 in 2011, some members of the Lebanese parliament objected to the inclusion of GHWs, echoing industry positions on the issue.¹⁹⁴ Though the implementation decree for GHWs was elaborated in 2011 and updated in 2016, it has still not been approved, reportedly due to industry interference and lobbying.¹⁹⁵ As of 2021, GHWs had yet to be implemented.¹⁹⁷

Interacting with the Lebanese delegation to the COP

In 2018, the Regie hosted a meeting attended by six government officials at its headquarters, ahead of the Eighth Session of the Conference of the Parties (COP8) to the WHO FCTC. In the Regie’s own words, the meeting aimed to define a position that “addresses the threats that the items on COP8 agenda for next October pose to tobacco sector”.¹⁹⁸ There was also a presentation laying out the Regie’s positions on decisions made at the previous COP, as well as the proposals to be discussed at COP8.¹⁹⁸

Delivering this presentation, Mariam Hariri, the Regie’s Head of General Management, stated:

“We cannot look at tobacco sector only from the perspective of health damage; we must rather look at it with a comprehensive and impartial view. We must take into consideration the economic benefits it offers and the specificity of Lebanon.”¹⁹⁸

This meeting contravened the implementation guidelines for Article 5.3 of the WHO FCTC, which urge parties to limit interactions with the tobacco industry to those strictly necessary for effective regulation of the industry and its products.¹⁹⁹

The Regie has also lobbied foreign diplomats. In May 2022, the German ambassador to Beirut visited Regie headquarters in Hadath. He was briefed on “the Regie’s achievements in agricultural, industrial, and commercial fields, among others, as well as about the societal role that it had played during the recent years.”²⁰⁰

• For more on the relationship between diplomats and the tobacco industry, please see Diplomats Lobbying for Tobacco Companies.

Corporate social responsibility

In 2016, the Regie launched its sustainable development plan, entitled “Development Vision for a Brighter Tomorrow”. Its stated aim was “promoting economic development, environment protection, fighting illicit trade & child labor, and improving the living of workers & farmers and the communities where we operate.”¹⁹¹ The plan was launched at a ceremony which was supported by the speaker in the Lebanese parliament, and attended by notable figures from business, politics, finance and the trade union movement.¹⁹¹ These included senior civil servants from government departments including the Ministry of Finance, the Ministry of Economy and Lebanese customs.¹⁹¹

Since then, the Regie has conducted extensive CSR activities, including some directed at or involving Lebanese state institutions. For example, it donated US$2.6 million to the Lebanese Army in 2021.¹⁶⁶ It also engaged in CSR during the COVID-19 pandemic, donating US$1 million to the Lebanese government to support repatriating Lebanese students abroad and to buy ventilators for COVID-19 patients.²⁰¹

The Regie has also organised “women empowerment training sessions” for the daughters of tobacco farmers in different areas of Lebanon. These sessions had the support of local authorities; for example, some were held in municipal buildings or involved the participation of local councillors.²⁰²²⁰³

The Regie has also carried out CSR in partnership with TTCs. In 2017, in an initiative financed by PMI Lebanon, the Regie offered scholarships to 136 children of tobacco farmers in the north of the country – the fourth consecutive year it had done so.²⁰⁴

• For more on tobacco industry activity during the pandemic, please see the COVID-19 Tobacco Tactics page and the COVID-19 monitoring database.

Relevant Links

• AUB tobacco researchers and Lebanese activists press conference on economic impacts of Law 174: The tobacco control law is good for the economy and public health, American University of Beirut
• Prevalence of cigarette and waterpipe tobacco smoking among adults in three Eastern Mediterranean countries: a cross-sectional household survey, R. Nakkash, Y. Khader, A. Chalak, R. Abla, N. M. E. Abu-Rmeileh, A. Mostafa, M. Jawad, J. H. Lee and R. G. Salloum, BMJ open, 2022, 12(3), e055201
• The passage of tobacco control law 174 in Lebanon: reflections on the problem, policies and politics, R.T. Nakkash, L. Torossian, T. El Hajj, J. Khalil and R.A. Afifi, Health Policy and Planning, 2018, Volume 33, Issue 5, pp. 633–644
• K2P COVID-19 Series: Prompting Government Action for Tobacco Control in Lebanon during COVID-19 Pandemic, R. Saleh, R. Nakkash, A. Harb and F. El-Jardali, 2020, Knowledge to Policy (K2P) Center, Beirut, Lebanon
• The Economics of Tobacco in Lebanon: An Estimation of the Social Costs of Tobacco Consumption, Salti, J. Chaaban and N. Naamani, Substance Use & Misuse, 2014, 49:6, 735-742

Tobacco Tactics Resources

• Eastern Mediterranean Region
• Oxford Economics
• Tobacco Farming

TCRG Research

• The Lebanese Regie state-owned tobacco monopoly: lessons to inform monopoly-focused endgame strategies, H. Alaouie, J.R. Branston and M.J. Bloomfield, 2022, BMC Public Health, 22, 1632.
• Developing more detailed taxonomies of tobacco industry political activity in low-income and middle-income countries: qualitative evidence from eight countries, B.K. Matthes, K. Lauber, M. Zatoński, L. Robertson, A.B. Gilmore, BMJ Global Health 2021;6:e004096.
• Tobacco industry commissioned reports on illicit tobacco trade in the Eastern Mediterranean Region: how accurate are they? Sandberg, A.W.A. Gallagher and R. Alebshehy, 2020, Eastern Mediterranean Health Journal, 26(11):1320–1322.

For a comprehensive list of all TCRG publications, including research that evaluates the impact of public health policy, go to TCRG publications.

References

The post Lebanon Country Profile appeared first on TobaccoTactics.

Key Points

• Bangladesh is a country in South Asia, part of the World Health Organization’s South-East Asia Region.
• It has a population of 171.2 million, with tobacco use prevalence of 43.7%.
• Smoking prevalence is high, at 23.5%. However, smokeless tobacco (SLT) use prevalence is even higher, at 27.5%.
• Bangladesh ratified the WHO Framework Convention on Tobacco Control (WHO FCTC) in 2004. It has not ratified the Protocol to Eliminate Illicit Trade in Tobacco Products.
• The Bangladeshi cigarette market is dominated by British American Tobacco Bangladesh, followed by Japan Tobacco International’s local subsidiary United Dhaka Tobacco Company Limited. There are also local cigarette, bidi and SLT producers.
• Recent tobacco industry tactics in Bangladesh include direct lobbying of civil servants, which successfully obtained an exemption to lockdown restrictions during the COVID-19 pandemic; using diplomats to lobby in its interests; and the mobilisation of third-party organisations against tobacco control.

In 2016, Prime Minister Sheikh Hasina declared her intention to make Bangladesh tobacco free by 2040.²⁰⁵ Bangladesh has in recent years increased its compliance with the World Health Organization Framework Convention on Tobacco Control (WHO FCTC), created a dedicated tobacco control cell and introduced a health surcharge on all tobacco products.²⁰⁵²⁰⁶ However, according to a study published in 2022, no measures have been adopted to implement Article 5.3 of the WHO FCTC.²⁰⁷ Industry interference in public policy – particularly by British American Tobacco Bangladesh (BATB), in which the state holds a share of over 9% – is an ongoing challenge.²⁰⁷²⁰⁸ The study’s authors argue that progress in minimising such interference is essential if the commitment to a creating a tobacco-free Bangladesh by 2040 is to be met.²⁰⁷

Tobacco Use in Bangladesh

In 2022, the population of Bangladesh was 171.2 million.²⁰⁹ Among adults aged from 18 to 69, overall tobacco use prevalence was nearly 44% as of 2018 (almost 60% of men and over 28% of women).²¹⁰

As of 2018, 23.5% of Bangladeshi adults smoked.²¹⁰ Cigarettes were the most popular product: amongst current tobacco smokers, over 99% reported using cigarettes, compared to 32.5% who reported smoking bidis (cigarettes rolled by hand in a dried leaf of the tendu tree).²¹⁰ There was a major gender difference, with nearly 47% of men reporting current smoking at the time of the survey, compared to 1% of women.²¹⁰

At 27.5%, smokeless tobacco (SLT) use is even more common than smoked tobacco.²¹⁰ This is due in part to the high prevalence of SLT use amongst Bangladeshi women. Over 28% of Bangladeshi women used SLT, compared to nearly 27% of men.²¹⁰Most female tobacco users in low- and middle-income countries are SLT users in India and Bangladesh.²¹¹ Popular SLT products include betel quid with zarda, betel quid with sadapata, pan masala with tobacco and gul.²¹⁰

Amongst adolescents aged from 13 to 17, nearly 10% used tobacco in some form as of 2014, with almost 14% of boys using tobacco compared to 2% of girls.²¹² The rate for cigarette smoking was nearly 8%, with 11% of boys smoking compared to 1.5% of girls.²¹²

There were an estimated 106,000 deaths attributable to smoking in 2019, accounting for over 12% of all mortality in Bangladesh that year.²¹³ The total annual cost of tobacco use in Bangladesh was estimated at BDT৳305.6 billion (US$3.6 billion) in 2018, which was equivalent to 1.4% of GDP in 2017-18.²¹⁴ Direct healthcare costs accounted for BDT৳83.9 billion, of which 24% was covered by public health expenditure. This is a significant outlay, representing 8.9% of the healthcare budget in 2018-19.²¹⁴ However, most of the costs attributable to tobacco use – both direct and indirect – are borne by tobacco users and their families.²¹⁴ While the economic contribution of the tobacco industry to Bangladeshi GDP was estimated at BDT৳229.11 billion ($US2.7 billion) in 2018, this was still BDT৳76.54 billion (US$911 million) less than the annual costs attributable to tobacco use. Tobacco therefore results in a net loss to the Bangladeshi economy.²¹⁴²¹⁵

Tobacco in Bangladesh

Market share and leading brands

In 2022, market research company Euromonitor International estimated the Bangladeshi tobacco market to be worth nearly BDT৳420 billion – over US$4.5 billion.²¹⁶²¹⁷

British American Tobacco Bangladesh (BATB) dominates the Bangladeshi tobacco market, with a market share of over 84.5% in 2022.¹⁸ Its portfolio includes the three bestselling brands of cigarette in the country: Royal, Derby and Hollywood.⁹⁹ The Bangladeshi state holds a stake of more than 9% in BATB, both directly, and through two state-owned assets.²⁰⁸

BATB’s closest competitor is Japan Tobacco International (JTI), which has a market share of over 9% following its 2018 acquisition of the United Dhaka Tobacco Company Limited (UDTCL), the tobacco business of the Akij Group conglomerate.^18218219 Its leading brands are Sheikh and Navy.⁹⁹

Smaller domestic companies include Abul Khair Tobacco Company, Alpha Tobacco Manufacturing Company and Nasir Tobacco Industries Ltd.²²⁰

• For more information on the tobacco industry in Bangladesh, please see the Tobacco Supply Chain Database.

Smokeless tobacco and bidis

Accurate, up-to-date information on the SLT industry in Bangladesh is scarce. SLT producers are mostly home based and work informally, which makes for a fragmented market.²²¹²²² However, larger companies include Kaus Chemical Works, which sells Hakimpuri Zarda, one of the most popular zarda products (made of dried and boiled tobacco leaves, lime, areca nut, additives, tannins and spices) in the country; and Baba Al-Tajer Dhaka.^221223224

Similarly, reliable and up-to-date information about bidi production is not available. However, a 2012 investigation found 117 bidi factories spread throughout the country.²²⁵ The leading bidi company in Bangladesh is the Akiz Bidi Company; others include Aziz Bidi, Maya Bidi and Bangla Bidi.²²⁶

Tobacco farming

Large-scale tobacco agriculture began in Bangladesh following independence in 1971, when BATB began growing in the greater Rangpur area.²²⁷ Today, tobacco is grown throughout the country, with significant tobacco-growing regions including Lalmonirhat, Nilphamari, Kushtia, Manikganj, Tangail, Bandarban and Cox’s Bazar.²²⁷

Bangladeshi tobacco production was steady at around 40,000 tonnes annually from the late 1970s until 2009, at which point it began to increase rapidly, peaking at just under 130,000 tonnes in 2019.²²⁸ In 2020 Bangladesh declared nearly 86,000 tonnes, making it the 12^th largest tobacco producer in the world.²²⁸²²⁹

Child labour

Human rights organisations have documented child labour in tobacco fields in Bangladesh.²³⁰ In 2020, a video report published by Unfairtobacco and Bangladeshi NGO UBINIG showed children missing school in order to help their families with the tobacco harvest.²³¹ Another video report documented the impacts of tobacco farming on Bangladeshi women, including the challenge of combining long hours working on the harvest with domestic tasks; negative health effects, including respiratory problems, fevers, and loss of appetite; as well as poor economic returns.²³²

In 2016, the Swedish NGO Swedwatch published a report based on research in three leaf cultivation areas which supply BATB.²³³ It documented widespread child labour and negative impacts on the health and wellbeing of farm labourers, both children and adults.²³³ It also showed how the use of flawed contracts and uncertain promises contributed to over-indebtedness and trapped many farmers in poverty.²³³ In response, BAT conducted an internal review which, according to the company, “did not raise any significant concerns and indicated that the report as a whole is not representative of the reality on the ground.”²³⁴ A subsequent investigation BAT commissioned to consulting firm DNV GL supported its internal review.²³⁵

Bangladeshi bidis feature on the U.S. Department of Labor’s 2022 List of Goods Produced by Child Labor or Forced Labor.²³⁶ It is estimated that at least half of the workforce in the Bangladeshi bidi industry is aged between 4 and 14; average wages are between US$0.77 and US$1.57 per day.²²⁶ A 2012 investigation found that most bidi workers were women and children.²²⁵ According to several workers, managers and people in communities around the bidi factories surveyed, this is because their labour is much cheaper and they are less capable of organising for higher wages or better working conditions.²²⁵

• For information on tobacco industry responses to accusations of complicity in child labour, please see the pages on CSR: Child Labour and the Eliminating Child Labour in Tobacco-Growing Foundation (ECLT).

Tobacco and the economy

Bangladesh is a net exporter of tobacco. In 2015, the last year for which data is currently available from UN Comtrade (as of September 2023), Bangladesh exported US$43.5 million in raw tobacco, compared to just over US$8 million in imports.²³⁷²³⁸ However, it is a net importer of factory-made cigarettes. The same year, it imported over US$3 million in cigarettes, compared to just over US$354,000 in exports.²³⁹²⁴⁰

Illicit trade

A World Bank report published in 2019 found that Bangladesh had a low estimated incidence of illicit trade in cigarettes (2%), compared to estimated global rates of 10-12%.²⁴¹ According to the report, annual revenue losses from the illicit cigarette trade are about US$100 million, around 4% of total tobacco revenues.²⁴¹ Bangladesh has strong legal and institutional structures to combat illicit trade, including a cigarette stamp and banderol system to ensure compliance with taxation, robust law enforcement and stiff penalties for smuggling.²⁴¹

Though the illicit bidi trade is likely to be larger than that for cigarettes, revenue loss has so far been low given that bidis were barely taxed at all until recently.²⁴¹ The illicit trade in smokeless tobacco is also likely to be significant, though in the absence of any track and trace system or even tax stamps on SLT products, it is impossible to estimate the illicit share of the SLT market accurately.²²¹ A 2022 study found that “Almost all ST [smokeless tobacco] products bought in Bangladesh (…) were non-compliant with the local packaging requirements and hence potentially illicit”.²²¹

Tobacco and the environment

A 2020 study found various forms of contamination due to tobacco growing in Bangladesh, both in the soil and in nearby water sources. The most important parameter found to be significantly higher in tobacco-growing land was the pesticide aldicarb.²²⁹ Classified as “extremely hazardous” by the WHO, this chemical is banned in 125 countries, though its use remains widespread.²⁴² The same study calculated the environmental cost of tobacco curing (due to carbon emissions) at US$310 per acre used for tobacco cultivation.²²⁹

Another report stated that contamination of water and soil by tobacco farming is endangering the livelihoods of nearly 800,000 people in the Bandarban and Cox’s Bazar districts who depend on the Matamuhuri river for fishing and cultivation of food crops.²⁴³ Swedwatch also documented deforestation and forest degradation linked to farms in Bandarban and Chakoria which supply BATB.²³³ It alleged that BATB has contributed to these problems by failing to prevent sourcing of fuel wood from natural forests and by supporting the construction of kilns in forest areas.²³³

• For more information on the tobacco industry in Bangladesh, please see the Tobacco Supply Chain Database.

Roadmap to Tobacco Control

Bangladesh was the first country to sign the WHO FCTC on 16 June 2003.²⁴⁴ It ratified the treaty a year later.²⁴⁵ However, it has not signed the Protocol to Eliminate Illicit Trade in Tobacco Products.²⁴⁶

The Smoking and Tobacco Products Usage (Control) Act (2005) is the principal law governing tobacco control in Bangladesh. The Act is comprehensive and covers smokefree spaces; tobacco advertising; the sale of tobacco to and by minors; and the packaging and labelling of tobacco products, among other areas.⁵¹ However, the law had some major limitations. For example, it mandated only textual health warnings on smoked tobacco products, which is problematic in Bangladesh given the popularity of smokeless tobacco.²⁴⁷ Similarly, although it banned advertising of tobacco products, it did not comprehensively cover sponsorship.²⁴⁷

The Act was amended in 2013 and implementation rules were introduced in 2015, increasing compliance with the WHO FCTC. However, the industry was given a 12-month transition period to fully comply.²⁴⁷ Even then, industry interference – principally by British American Tobacco Bangladesh (BATB) – has succeeded in delaying full implementation of the Amendment.²⁴⁷ For example, though the Amendment mandated graphic health warnings (GHWs) on the upper half of all tobacco packaging, as of May 2022 – over seven years since the implementation rules were first published in the country’s official gazette – GHWs were still printed on the lower half of tobacco products.²⁴⁷ Though this is considered a complete measure by the WHO, it means that the GHWs may be less visible to many Bangladeshi consumers. This is because tobacco products are often sold by mobile sellers out of steel trays which cover the lower half of the products.²⁴⁷

Other major loopholes remain. Designated smoking areas are still permitted in certain public places; there are no restrictions on the sale of individual cigarettes (single sticks), small packets of cigarettes, or tobacco products via the internet; and there are no restrictions on use, advertising, promotion and sponsorship, or packaging and labelling of e-cigarettes.⁵¹

However, as of June 2022, the Ministry of Health and Family Welfare (MoHFW) was preparing a new amendment to the Smoking and Tobacco Products Usage (Control) Act, which contains a number of global best practices.²⁴⁸ If passed, it would eliminate designated smoking areas; ban corporate social responsibility (CSR) by tobacco companies; ban the sale of single sticks; ban the display of tobacco products at points of sale; and increase the size of graphic health warnings (GHWs) on tobacco products from 50% to 90%.²⁴⁸ It also aims to ban the sale of e-cigarettes.²⁴⁸

In 2015, the Bangladeshi government began to levy a 1% Health Development Surcharge (HDS) on all tobacco products, which brings in around US$71 million a year, designed to support key government health initiatives including tobacco control.²⁴⁹ However, this funding has not always been easily accessible to the MoHFW. As of March 2021, the National Tobacco Control Cell (NTCC), which sits within the MoHFW, was working on a long-term tobacco control programme which would have smoother access to HDS funding.²⁴⁹

For more details, please see the following websites:

• Legislation by country – Bangladesh, Tobacco Control Laws, Campaign for Tobacco Free Kids
• Bangladesh, WHO FCTC Implementation Database, WHO FCTC Secretariat
• Country profile – Bangladesh, World Health Organization, WHO report on the global tobacco epidemic 2021

Tobacco Industry Interference in Bangladesh

Recent tobacco industry tactics in Bangladesh include direct lobbying of civil servants, which successfully obtained an exemption to lockdown restrictions during the COVID-19 pandemic; using diplomats to lobby in its interests; and the mobilisation of third-party organisations against tobacco control.

Influencing policy: conflicts of interest

According to a study published in 2022, no measures have been adopted to implement Article 5.3 of the WHO FCTC in Bangladesh.²⁰⁷ The tobacco industry continues to influence policymaking, particularly BATB, in which the government holds a share of over 9%.²⁰⁷²⁰⁸

This incident also demonstrates how much the tobacco industry (particularly BATB) is connected with government in Bangladesh.²⁰⁷ The Secretary at the MoI, who granted the lockdown exemptions to BATB and UDTCL, simultaneously had a seat on the BATB board as a non-executive director.²⁰⁷ This arrangement between the MoI and BATB appears to date back to at least 2010.²⁵⁵

Several other senior civil servants also sit as independent or non-executive members on the BATB board, including a secretary at the Prime Minister’s Office.^256257258255

A study published in 2022 stressed that the presence of senior government officials on the BATB board leads both to individual and institutional conflicts of interest.²⁰⁷ However, a former Secretary at the MoI has denied this, stating that tobacco control is not discussed at BATB board meetings.²⁵⁹

• For more on tobacco industry activity during the pandemic, please see the COVID-19 Tobacco Tactics page and the COVID-19 monitoring database.

Influencing policy: lobbying by diplomats

There have also been cases of lobbying of Bangladeshi authorities by foreign diplomats on behalf of the two main transnational tobacco companies operating in the country. In 2017, the British High Commissioner in Bangladesh intervened on behalf of BATB in a tax dispute between BATB and the NBR. Similarly, in 2021, the Japanese Ambassador sent a letter to the Bangladeshi Finance Minister criticising tax reforms which had impacted JTI, as well as restrictions on the marketing and sale of certain JTI products. The letter also complained of “anti-competitive” behaviour, alluding to BATB’s domination of the Bangladeshi tobacco market.

• For more information, please see the pages on UK Diplomats Lobbying for BAT: Bangladesh and Japanese Diplomats Lobbying for JTI.

Use of third parties

In June 2022, the Ministry of Health and Family Welfare (MoHFW) published another draft amendment to the Smoking and Tobacco Products Usage (Control) Act (2005) – Bangladesh’s main tobacco control law – and asked for input from relevant stakeholders (see section Roadmap to Tobacco Control).²⁶⁰

In response, the MoHFW received letters criticising the amendment from various trade associations, including the Federation of Bangladesh Chamber of Commerce and Industries (FBCCI) and the Foreign Investors’ Chamber of Commerce and Industry (FICCI), both of which have tobacco industry links.²⁶¹²⁶²

In July 2022, a “policy dialogue” event – widely reported in the press – was held at a five-star hotel in Dhaka by the Intellectual Property Association of Bangladesh (IPAB). Speakers argued the amendment would reduce tax revenue, increase illicit trade and threaten livelihoods, reportedly describing it as “unrealistic”, “unimplementable” and “counterproductive”.²⁶³ On its website, IPAB lists BATB among its corporate members, from which it acknowledges receiving “extensive support”, and two members of IPAB’s executive committee also hold senior positions at BATB.^264265266267

Another participant at the event was the executive director of FICCI, which lists BATB, Philip Morris Bangladesh and United Dhaka Tobacco Company Ltd (UDTCL) as member organisations.^263268269270 FICCI also includes tobacco industry executives on its board of directors, including the managing director of UDTCL, author of the letter to the Ministry of Industries requesting an exemption from COVID-19 restrictions in 2020 (see Influencing policy: conflicts of interest).²⁵²²⁷¹

A 2018 investigation by the public health NGO PROGGA concluded that BATB’s infiltration of influential business and trade organisations constituted a major barrier to greater tobacco control in Bangladesh.²⁷²

• For more information on business organisations in Bangladesh and neighbouring countries see Trade Associations.

Relevant Links

• Live: Tobacco Industry Interference on Amendment of Tobacco Control Law 2022, Center for Research and Advocacy to Fight Tobacco
• National STEPS Survey for Non-communicable Diseases Risk Factors in Bangladesh 2018, National Institute of Preventive and Social Medicine (NIPSOM)
• The economic cost of tobacco use in Bangladesh: A health cost approach, Bangladesh Cancer Society

Tobacco Tactics Resources

• South East Asian Region
• Trade Associations
• Greenwashing

TCRG Research

• Tobacco industry interference to undermine the development and implementation of graphic health warnings in Bangladesh, M.H. Shahriar, M.M. Hasan, M.S. Alam, B.K. Matthes, A.B. Gilmore, A.B.M. Zubair, Tobacco Control, 2023, doi: 10.1136/tc-2022-057538
• Achieving a tobacco-free Bangladesh by 2040: a qualitative analysis of the tobacco advertising environment and prohibitions in Bangladesh, A. Tselengidis, S. Adams, B. Freeman, S.M. Alam, P.A.S. Astuti, J. Cranwell, BMJ Open 2023;13:e069620, doi: 10.1136/bmjopen-2022-069620
• Advancing whole-of-government approaches to tobacco control: Article 5.3 and the challenge of policy coordination in Bangladesh, Ethiopia, India and Uganda, R. Barry, S.M. Abdullah, A. Chugh, S. Hirpa, P. Kumar, D. Male, R. Ralston, T. Wagner-Rizvi, J. Collin, Tobacco Control, 2022;31:s46-s52
• Developing more detailed taxonomies of tobacco industry political activity in low-income and middle-income countries: qualitative evidence from eight countries, B.K. Matthes, K. Lauber, M. Zatoński, L. Robertson, A.B. Gilmore, BMJ Global Health 2021;6:e004096.
• Estimating the magnitude of illicit cigarette trade in Bangladesh: protocol for a mixed-methods study, S. Abjullah, R. Huque, L. Bauld, H. Ross, A. Gilmore, R.M. John, K. Siddiqi, Int. J. Environ. Res. Public Health 2020, 17(13), 4791

For a comprehensive list of all TCRG publications, including research that evaluates the impact of public health policy, go to TCRG publications.

References

The post Bangladesh Country Profile appeared first on TobaccoTactics.

Malawi is one of Africa’s largest exporters of tobacco leaf. In July 2020, the population of Malawi was estimated to be approximately 21.2 million.²⁷³ The World Bank classifies Malawi as a low-income country.²⁷⁴

Tobacco Use in Malawi

The STEPS Survey, 2017 reported a current tobacco use prevalence of 22% male (18-69 years) and 3% female (18-69 years). The Global Youth Tobacco Survey, 2009 (ages 13-15) found that 16.7% of boys and 11.4% of girls were current tobacco users.⁵³

Tobacco in Malawi

Malawi is one of Africa’s largest tobacco leaf producers and in 2015, produced 22.6% of all of Africa’s output of tobacco leaf.²⁷⁵ In 2018, 95,356 tonnes of tobacco were harvested in Malawi.²⁷⁶ It is one of the world’s largest producers of burley tobacco. In 2015, tobacco farming took up more than 5% of all of Malawi’s farming land – the highest percentage anywhere in the world, at that time. In the same year, it also had the fourth highest deforestation rate in the world; according to the government, tobacco is a major driver of forest loss in the country.²⁷⁷

Government ministers have called tobacco a “strategic crop” for Malawi and defended the country’s continuing investment in its production.²⁷⁸ However, earnings from tobacco leaf export have declined sharply over recent years.²⁷⁹

Three of the big four transnational tobacco companies, Philip Morris International (PMI), Imperial Brands and British American Tobacco (BAT) all purchase tobacco leaf from the two main leaf distributors in the country: Universal Leaf (in Malawi, known as Limbe Leaf) and Alliance One.²⁸⁰ Japan Tobacco International (JTI) buys its own leaf from the country. The Chinese National Tobacco Corporation (CNTC), the largest tobacco company in the world, also buys small amounts of tobacco from leaf purchasing companies Limbe Leaf and Alliance One.²⁸¹

The cigarette market in Malawi in 2018 was estimated to be worth US$101.9 million and 2,408.9 million sticks by Euromonitor International.²⁸²

• For more information, please see the pages Tobacco Farming and Tobacco and the Environment.

Roadmap to Tobacco Control

Malawi ratified the World Health Organization Framework Convention on Tobacco Control (WHO FCTC) in August 2023.²⁸³ However, as of 2021, it lacked a tobacco control programme and had implemented almost no tobacco control measures.⁵³

In 2018, the Malawian Parliament passed the Tobacco Industry Bill to update the Tobacco Act (1970)²⁸⁴ and prevent the exploitation of farmers by tobacco companies.²⁸⁵ This is not, however, a tobacco control act: as researchers from the Centre for Agricultural Research & Development in Lilongwe commented in Tobacco Atlas, “although the Act was touted as protecting the growers, many farmers argue that the Act actually harms the farmers more than was the case before the new Act”.²⁸⁶ Instead, the Act and its update regulate tobacco growing and wholesale buying, selling and export of tobacco leaf.²⁸⁷ JTI said it had worked alongside government on the Bill’s formulation in 2018 with “stakeholders in the tobacco industry” and expressed its support for the Bill, saying it hoped it would “not be delayed”.²⁸⁸

For more details, please see the following websites:

• Legislation by Country/Jurisdiction – Malawi, Tobacco Control Laws, Campaign for Tobacco-Free Kids
• Malawi, WHO FCTC Implementation Database, WHO FCTC Secretariat
• Country profile – Malawi, World Health Organization, WHO report on the global tobacco epidemic 2021

Tobacco Industry Interference in Malawi

Leaf sourcing companies, including Alliance One, regularly publicise their corporate social responsibility (CSR) activities, including the construction of schools and donations to orphanages as a strategy to address child labour or to disaster relief funds, in press coverage.^{289290291292293} In one article, Alliance One was commended for building a school “in Malawi’s President Chakwera’s home area”. The company reportedly had spent MK153 million (approximately US$201,750) on primary school construction projects in the country.²⁹⁰ Tobacco industry CSR, and its promotion, is called “an inherent contradiction” by the WHO FCTC, which recommends against banning all such activities by tobacco companies.²⁹⁴

The Eliminating Child Labour in Tobacco-Growing Foundation (ECLT), an organisation funded and governed by tobacco companies, is active in Malawi. The Foundation for a Smoke-Free World, a front group wholly funded by PMI, also operates in the country. It has several grantees in the country, including the Centre for Agricultural Transformation (CAT) and the Malawi Agricultural Policy Advancement and Transformation Agenda (MwAPATA) Institute.

• You can read more about how the tobacco industry uses CSR as part of its corporate strategy on our CSR Strategy, CSR: Child Labour and Greenwashing.

Arguments about the importance of tobacco growing to Malawi’s economy are used by Malawian politicians to justify continued interaction and cooperation with the tobacco industry. In his September 2020 State of the Nation address, President Chakwera said:²⁹⁵

“while tobacco remains Malawi’s primary export and a key form of income for many Malawians, the crop is unlikely to provide a sustainable source of income in the longer-term given a decline in global demand. By working with tobacco companies, we can help blend other crop types into the farmers’ mix over time. Diversification efforts such as this can contribute significantly to household food security while supporting the establishment of a more resilient agricultural system. This is especially important given the resources, expertise, and strong domestic and international networks which tobacco companies can offer.”

The government of Malawi has engaged with the tobacco industry on tobacco pricing²⁹⁶ and foreign investment.²⁹⁷

In 2024, an investigation by media outlet ZAM and the Malawian Platform for Investigative Journalism reported that Alliance One paid almost no corporate income tax in Malawi in 2020 and 2021.²⁹⁸ Alliance One is Malawi’s second largest tobacco leaf merchant, with a market share of around 40%. It exported US$319 million in raw tobacco between 2020 and 2022, yet it paid no corporate income tax at all in 2020, and just US$41,000 in 2021.²⁹⁸ Corporate income tax in Malawi is supposed to be 30% of a company’s profit.²⁹⁹ During the same period, Alliance One sent payments abroad of around US$1.4 million and US$2.8 million.²⁹⁸

Alliance One, which is a subsidiary of the US agricultural company Pyxus International, supplies both BAT and Imperial Brands.²⁹⁸³⁰⁰

• For more information on Alliance One, see the Tobacco Supply Chain Database.

Attempts to influence international organisations using Malawi’s government

Another way that the tobacco industry gains access to policymakers, and therefore legislation, is through positioning itself as a ‘partner’ in development. Prior to the passage of the WHO FCTC in 2003, the tobacco industry influenced the government of Malawi to promote the arguments that tobacco control would result in job losses and foreign earnings that temporarily succeeded in distracting from the health benefits of tobacco control policies but was ultimately unsuccessful in weakening the WHO FCTC. This is an example of how tobacco companies use developing countries’ economic dependence on tobacco to lobby against global tobacco control.³⁰¹

Similarly, alongside the 2014 UN General Assembly (UNGA), which the industry is prevented from attending, the tobacco industry met with the Malawian President to urge him to represent its interests on a global stage. The then-Chairman and CEO of Universal Leaf Tobacco Company, George Freeman, met with the then-President Mutharika to “brief him on their operations in Malawi”. Freeman urged the President to “support the Integrated Production System (IPS)” and requested the government “lobby with the U.S. government” to request that tobacco be included in the renewed African Growth and Opportunities Act (AGOA) after 2015.³⁰² IPS is an industry-developed structure that adds supervision by technicians to the normal contract farming arrangement.³⁰³ The President responded that “Government will do everything possible to ensure a cordial relationship with companies in the tobacco industry”.³⁰²

Extensive research published in 2021 by the Tobacco Control Research Group at the University of Bath, a partner in STOP, and in conjunction with BBC’s Panorama, The Bureau of Investigative Journalism and the Organized Crime and Corruption Reporting Project uncovered multiple instances of British American Tobacco seeking to frustrate tobacco control measures in Africa.

• For more details visit The BAT Files.

Relevant Links

• Alliance One International website
• Limbe Leaf Tobacco Company (Universal) website
• JTI Malawi website
• BAT Malawi website

TobaccoTactics Resources

• Africa’s Tobacco Epidemic
• Centre for Agricultural Transformation
• Tobacco Farming
• British American Tobacco
• Japan Tobacco International
• A list of TobaccoTactics pages on Africa

References