Findings from EVO NXT – Buzz@Bruss!

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EVO NXT brought together key players in the reduced-risk products (RRP) industry from across Europe and beyond. Independent manufacturers and distributors showcased their latest innovations and expanding portfolios, focusing on nicotine pouches, vaping and heated tobacco products. The event also featured insights from practitioners, retailers, lab service providers, knowledge outlets (e.g. Tamarind, Euromonitor, et al.) and public affairs experts, who provided valuable snapshots and updates on market dynamics. JTI’s Francesco Gaglioppa attended the conference and shares his findings on the sector’s perspective regarding the policy landscape, particularly in light of the upcoming revision of the Tobacco Products Directive (TPD) and the inclusion of the RRP category therein.

Misleading statements on alternative nicotine products: a dangerous trend

The EU’s constrictive approach: More and more Member States decide to impose restrictions and limits on alternative nicotine products, not recognizing their reduced-risk potential and the available scientific evidence.
When banning or restricting, the argument of youth access prevention often comes into play; however, this approach has the unintended consequence of ultimately depriving adult nicotine users of access to less harmful products.

Lack of uniformity: Participants noted the lack of uniformity in RRP regulations and definitions across Member States; this inconsistency is significantly complicating commercial operations within the Single Market.

E-cigarettes: Solid framework, urgent need for better enforcement

There was an unspoken consensus that TPD2 is seen as providing a solid legislative framework for e-cigarettes. The real need now is for better enforcement and market monitoring to prevent non-compliance and ‘free-riding’.
Retailers echo this concern: when new products aren’t delivered through controlled channels, such as licensed retailers, consumers turn to illegal sources for e-cigarettes. It’s challenging to regulate wholesalers and suppliers without robust and balanced regulations across the supply chain. Unlike neighborhood tobacconists, illegal channels ignore existing regulations and don’t self-restrict from selling to underage consumers.
However, good practices do exist around the EU:
Belgium included e-cigarettes under its excise regime, requiring importers to set up fiscal warehouses, which aids public authorities in monitoring duties.

Austria subjected nicotine pouches to the same channels as tobacco products, tailoring restrictions to ensure tax collection and that consumers only get products from official wholesalers.

Italy addressed the rise of herbal nicotine products by creating a dedicated category under its excise regime, limiting distribution to licensed tobacconists, prohibiting sales to minors and imposing a moderate, easy-to-administer excise tax.

Nicotine Pouches: Growing up and taking center stage

The nicotine pouches category, as the newest addition to the RRP portfolio, has seen significant development and continues to be a central topic of interest and debate.
Panels reminded us that these products offer alternatives to adult smokers who are concerned about the health impacts of smoking but seek different sensory experiences.
Meanwhile, several Member States proposed a complete ban on the category and called for EU-wide prohibition. There is growing resistance, also from the ranks of independent producers, against this short-sighted approach, arguing it limits consumer choice and fuels illegal channels. They suggest instead that more balanced measures should be pursued – if former cigarette users then return to smoking, public health goals will literally “go up in smoke.”

Buzz@Bruss!

#6

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