In fiscal year 2022, almost 93 billion sticks of cigarettes were sold in Japan. Referred to as a smokers’ paradise in the past, cigarette sales reached record lows in recent years. The tobacco industry used to be able to thrive unobstructed with the support of the Japanese government in the past, generating trillions in tax revenue. But reforms in the recent decade have been encroaching on the success of cigarettes as the go-to tobacco product.
One monopoly to face outside competition
The Japanese tobacco market is dominated by the formerly state-owned monopoly Japan Tobacco. While the Government of Japan still owns one-third of the company’s outstanding shares under the supervision of the Ministry of Finance, the domestic market has been opened to foreign cigarette brands. British American Tobacco and Philip Morris International were successfully establishing their presence in the market, but the businesses are not authorized to manufacture tobacco products in the country. As such, Japan Tobacco remains the sole authorized manufacturer within the country, while foreign competitors distribute their brands as imported products. In turn, the Japanese company is obliged to purchase the entire harvest of tobacco leaves produced within the domestic agriculture industry.
Bringing a shift into tobacco control policymaking
Japan used to have lenient smoking regulations, particularly for indoor smoking, where it was mostly unregulated unless it infringed on fire safety codes. But with Japan’s role as a host to the 2019 Rugby World Cup, 2020 Summer Olympics, and 2020 Summer Paralympics, policymaking shifted towards regulations to reduce passive smoking. While outdoor smoking is still frowned upon outside of dedicated smoking areas, indoor smoking bans were enforced for public buildings like schools and hospitals. Enclosed smoking rooms became a solution for other places like food service establishments, but the majority of businesses have a ban enforced on their entire premises. As a factor pushing smokers to look for alternatives to their cigarette consumption habits, stick sales remain on a continuous decline.
Sales volume of cigarettes in Japan from fiscal year 2013 to 2022
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Sales volume in billion sticks
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Tobacco Institute of Japan. (May 29, 2023). Sales volume of cigarettes in Japan from fiscal year 2013 to 2022 (in billion sticks) [Graph]. In Statista. Retrieved July 03, 2024, from https://www.statista.com/statistics/747313/japan-cigarette-sales-volume/
Tobacco Institute of Japan. "Sales volume of cigarettes in Japan from fiscal year 2013 to 2022 (in billion sticks)." Chart. May 29, 2023. Statista. Accessed July 03, 2024. https://www.statista.com/statistics/747313/japan-cigarette-sales-volume/
Tobacco Institute of Japan. (2023). Sales volume of cigarettes in Japan from fiscal year 2013 to 2022 (in billion sticks). Statista. Statista Inc.. Accessed: July 03, 2024. https://www.statista.com/statistics/747313/japan-cigarette-sales-volume/
Tobacco Institute of Japan. "Sales Volume of Cigarettes in Japan from Fiscal Year 2013 to 2022 (in Billion Sticks)." Statista, Statista Inc., 29 May 2023, https://www.statista.com/statistics/747313/japan-cigarette-sales-volume/
Tobacco Institute of Japan, Sales volume of cigarettes in Japan from fiscal year 2013 to 2022 (in billion sticks) Statista, https://www.statista.com/statistics/747313/japan-cigarette-sales-volume/ (last visited July 03, 2024)
Sales volume of cigarettes in Japan from fiscal year 2013 to 2022 (in billion sticks) [Graph], Tobacco Institute of Japan, May 29, 2023. [Online]. Available: https://www.statista.com/statistics/747313/japan-cigarette-sales-volume/