IQOS Smoking Room at Manila International Airport

During its coverage of Altria's booth at NACS Show 2026, 2Firsts documented product displays that prompted questions about U.S. tobacco advertising warning requirements. Following public comments from a former FDA official, 2Firsts sought responses from Altria and independently consulted U.S. regulatory lawyer Azim Chowdhury. Altria maintained that its B2B communications complied with applicable laws, while Chowdhury explained that federal warning rules provide no general trade-show exemption for e-cigarettes and nicotine pouches. The special report examines the broader regulatory implications.

Germany collected €9.789 billion in total tobacco tax revenue from January through August 2026, down 10.8% from a year earlier, according to the Federal Ministry of Finance. Germany's tobacco tax base covers not only cigarettes and fine-cut tobacco but also heated tobacco and vaping liquids taxed as tobacco substitutes. The German Association of the Tobacco Industry and Novel Products, or BVTE, citing federal statistical data, said tax-paid cigarette volume fell 12.6% to 40.6 billion sticks. BVTE is using the latest figures to argue against further tax increases planned from 2027 through 2030, while Germany's parliament is scheduled to hold a first reading of the bill on September 24.

Germany's Bundestag passed amendments to the Tobacco Tax Act on October 15, 2026, setting out annual excise tax increases from 2027 through 2030 for e-cigarette liquids, heated tobacco, cigarettes and other tobacco products. Under the Finance Committee's amended bill, duty on qualifying e-liquids will rise from €0.32/ml in 2026 to €0.44/ml in 2030, an increase of 37.5%. Heated tobacco will retain its tax calculation based on 80% of the corresponding cigarette excise duty. The average price of a 20-cigarette pack is projected to approach €12 by 2030, with some brands potentially reaching €14. The legislation is projected to generate approximately €11.8 billion in additional tax revenue over four years and remains subject to further legislative procedures.

AIR Global PLC (NASDAQ: AIIR), a producer of flavored shisha tobacco and next-generation nicotine products, reported an 11.1% increase in third-quarter 2026 revenue to $99.8 million and a 7.7% rise in adjusted EBITDA to $30.9 million. Revenue for the first nine months increased 6.0% to $306.7 million, but the company posted a $74.2 million net loss, affected by listing-related expenses and other costs. Its New Growth Categories (NGC) business generated $2.1 million in nine-month revenue and an adjusted EBITDA loss of $10.8 million. AIR maintained its 2026 revenue growth guidance of 4%–6%, while lowering its capital expenditure outlook and raising its year-end leverage forecast from approximately 2.1 times to 2.5 times. The company has submitted a U.S. PMTA for its Crown Switch pod vape, with future contributions from new products dependent on regulatory progress and commercialization.

At the 2026 New Approaches Summit in New York, former FDA Center for Tobacco Products Director Mitch Zeller called for the tobacco harm reduction debate to shift from the traditional “end game” toward defining a desired “end state.” He also highlighted unresolved concerns around dual use, argued that biomarkers of exposure may be more meaningful than cigarettes-per-day in assessing risk reduction, and said nicotine misperceptions remain a major barrier to public health progress.

Philip Morris International (PMI) is expanding the international footprint of BONDS by IQOS, its lower-priced heated tobacco platform. The company's third-quarter 2026 SEC filing shows that BONDS devices and BLENDS tobacco sticks were available in 15 markets at the end of September, up from eight at the end of June. In November, PMI announced plans to extend sales from three to 17 Japanese prefectures and introduced BONDS in Spain and Morocco. The platform uses ROUNDHEAT external heating technology and proprietary tobacco sticks, separate from the IQOS ILUMA system. In Japan, BONDS retails for ¥2,980, approximately 25% below ILUMA i ONE, while BLENDS costs ¥570 per pack. PMI management says BONDS targets cigarette smokers who have not adopted heated tobacco. Separate sales and revenue figures remain undisclosed.