Australia’s plain packaging smoking legislation came into force back
in December 2012, forcing all tobacco products to be sold in dull, drab
boxes with no fancy design, branding, or manufacturer information.
Instead, there was only permitted to be graphic and disturbing health
warnings, aimed to deter smokers from continuing with the habit, and
non-smokers from actually beginning to start smoking.
Logically, one would naturally expect sales of tobacco to maybe drop a
year on after the world’s first law for such a requirement. However,
remarkably the complete opposite has happened, and industry figures show
that sales of tobacco products have actually increased since the plain
packaging legislation kicked in.
The Australian Labor health minister
Nicola Roxon pushed through the law almost 18 months ago as an attempt
to discourage people from smoking, a habit which claims around 15,000
lives each year in the country, with social and economic costs estimated
at $31.5 billion annually.
Unfortunately, the plan has clearly backfired tremendously with sales
skyrocketing by an incredible 59 million cigarettes in 2013, up by 0.3%
on the previous year. This rise comprises of both packaged cigarettes
and the roll-your-own equivalents, according to ‘The Australian’
newspaper.
This increase marks a stark turnaround in broader trend of tobacco
sales in Australia, which had previously declined by 15.6% in the four
years prior.
However, the introduction of plain packaged tobacco appears to have
boosted the demand for cheaper cigarettes, with reports of a more than
50 per cent rise in the market for lower cost cigarettes.
The findings stem from research conducted by industry monitor
InfoView, demonstrating an increase in the market share of cheaper
cigarettes, rising from 32% to 37% last year. This appears to be
corroborated by retailers, consumer markets and the industry. For
instance, cigarette maker Philip Morris claims its information has
indicated absolutely no decline in demand.
Australasian Association of Convenience Stores chief executive Jeff
Rogut said that sales by his members had risen by $120 million, or 5.4%
last year. He commented: “Talking to members, one of the most common
refrains they get from people coming into stores is, ‘What are your
cheapest smokes?’.”
In addition, there has been more worrying statistics to emerge in
recent weeks by the NSW and South Australian governments that show
smoking appears to be increasing at a rapid rate.
The 2013 population health survey for NSW was published last month
and stated that 16.4% of all adults residing in the state smoked, up
from 14.7% in 2011. Moreover, for South Australia, a similar pattern was
evident. The rate of adults smoking has increased from 16.7% in 2011 to
19.4% last year.
However, the opposition health spokesperson Catherine King spoke to
The Australian and said she would ignore industry data and instead rely
on information obtained from the Australian Bureau of Statistics, which
showed that rates of smoking were still dropping.
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