The tobacco industry finds itself at a crucial point, facing the challenges of regulation while needing to innovate. To move forward effectively, it’s vital to find a balance that considers consumer preferences, public health goals, and the potential for new products.

While the U.S. FDA has the right intention of protecting public health, its lengthy pre-market tobacco application (PMTA) process often stifles innovation. Right now, only 7 percent of tobacco products are authorized for sale, meaning a staggering 93 percent are unavailable to consumers. This gap limits choices and slows down the introduction of products that could better serve today's market.

The trend towards reduced-risk products like e-cigarettes and nicotine pouches is promising. These options can provide similar satisfaction while potentially lowering health risks. However, their adoption has not been as quick as many hoped. The industry is grappling with how to keep up with fast-changing consumer preferences and the psychological factors that shape smoking behaviours.

Another significant issue is the rise of illicit trade, particularly in places like Australia, where it undermines legitimate businesses and disrupts market stability. To tackle this, it’s crucial for the industry and regulators to work together more effectively, enhancing enforcement and education to curb the demand for illegal products.

Pricing strategies also need careful thought. Companies are trying to balance necessary price increases with what consumers can afford. Given the high taxes on tobacco products, many consumers are changing their purchasing habits instead of quitting smoking altogether.

Emerging markets present exciting growth opportunities, especially for reduced-risk products. The U.S. market remains substantial, with relatively low prices for cigarettes suggesting that increasing taxes could positively shift market dynamics.

Despite these challenges, there’s a sense of cautious optimism in the industry. Companies like Imperial Brands are buying back shares and aiming for modest profit growth. Overcoming the hurdles ahead will require a focus on innovation, education, and collaboration.

A more cooperative approach to regulation is needed—one that prioritises public health, safety, and innovation. By focusing on consumer-centric development and adopting more flexible regulatory processes, the industry can bring innovative products to market more quickly.

The future of tobacco hinges on achieving a sustainable balance between regulation, innovation, and consumer choice. The industry should actively engage with regulators to combat illicit trade, focus on emerging markets, and create reduced-risk products that meet consumer needs.

Now is the time for the tobacco industry to take action. A balanced regulatory approach that prioritises consumer interests and encourages innovation is crucial. Streamlining regulatory processes and addressing the challenges posed by illicit trade will play a pivotal role in shaping a responsible future for tobacco—one that benefits both consumers and the industry as a whole.

The author, Dr. Vivian Manyeki, is a harm reduction advocate.