Effects of Vape on Tobacco Industry in

Philippines
What is vape?

An electronic cigarette or e-cigarette is a handheld electronic device that

simulates the experience of smoking a cigarette. It works by heating a which
generates an aerosol, or "vapor", that is inhaled by the user. Using e-
cigarettes is commonly referred to as vaping. The liquid in the e-cigarette,
called or e-juice, is usually made of nicotine, propylene glycol, glycerin, and
flavorings. Not all e-liquids contain nicotine.
The health risks of e-cigarettes are uncertain. They are likely safer than
tobacco cigarettes but are of unclear effect in relation to other methods
of stopping smoking. Their long-term health effects are not known. They may
help some smokers quit. When used by non-smokers, e-cigarettes can lead to
nicotine addiction, and there is concern that children could start smoking after
using e-cigarettes. So far, no serious adverse effects have been reported in
trials. Less serious adverse effects include throat and mouth irritation,
vomiting, nausea, and coughing.
The majority of toxic chemicals found in tobacco smoke are absent in e-
cigarette aerosol. Those present are mostly below 1% of the corresponding
levels in tobacco smoke. The aerosol can contain toxicants and traces of
heavy metals at levels permissible in inhalation medicines, and potentially
harmful chemicals not found in tobacco smoke at concentrations permissible
by workplace safety standards. However, chemical concentrations may
exceed the stricter public safety limits.
An electronic cigarette or e-cigarette is a handheld electronic device that
simulates the experience of smoking a cigarette. It works by heating a liquid
which generates an aerosol, or "vapor", that is inhaled by the user. Using e-
cigarettes is commonly referred to as vaping. The liquid in the e-cigarette,
called e-liquid or e-juice, is usually made of nicotine, propylene glycol,
glycerine, and flavorings. Not all e-liquids contain nicotine
The health risks of e-cigarettes are uncertain. They are likely safer than
tobacco cigarettes but are of unclear effect in relation to other methods of
stopping smoking. Their long-term health effects are not known. They may
help some smokers quit. When used by non-smokers, e-cigarettes can lead to
nicotine addiction, and there is concern that children could start smoking after
using e-cigarettes. So far, no serious adverse effects have been reported in
trials.[  Less serious adverse effects include throat and mouth irritation,
vomiting, nausea, and coughing.
The majority of toxic chemicals found in tobacco smoke are absent in e-
cigarette aerosol. Those present are mostly below 1% of the corresponding
levels in tobacco smoke. The aerosol can contain toxicants and traces of
heavy metals at levels permissible in inhalation medicines,] and potentially
harmful chemicals not found in tobacco smoke at concentrations permissible
by workplace safety standards. However, chemical concentrations may
exceed the stricter public safety limits.

HOW VAPING IS DISRUPTING THE TOBACCO INDUSTRY

IN PHILIPPINES

The e-cigarette market is still relatively new. It was not until 2003
that Hon Lik released his original e-cigarette after watching his
father pass from smoking-related illnesses. The following decade
and a half have seen rapid growth in investment, development and
market value. This growth is showing no signs of slowing and is
making waves the world over. In doing so, it’s also massively
affecting the tobacco industry.

How the numbers stack up:

2018 saw the tobacco industry take a huge £100 billion hit ($127
billion USD). British American Tobacco lost half its stock market
value. Altria and Philip Morris lost around 30 percent. Imperial
Brands lost around a quarter, and Japan Tobacco lost around 20
percent.

While the global tobacco market was estimated to be valued at

around $560 billion in 2017, it has a relatively modest compound
annual growth rate (CAGR) of 2.8 percent by 2021. If the current
trend continues, this is likely to drop. Even with more than a billion
smokers in the world, increases in awareness surrounding health
and in safer alternatives mean the tobacco industry is fighting a
losing battle.
Conversely, the global e-cigarette market is predicted to see a 20.8
percent CAGR by 2025. As such, many of the big players in the
tobacco industry are trying to shift their focus to this growing
market. BAT has invested $1 billion into e-cigarette research and
development in the last five years. They also own e-cigarette brand
Vype, a pod system similar to the Juul. Imperial Tobacco is also a
part of the e-cigarette market, having released the myBlu to keep
up with the changing demand.

Juul was one of the biggest influencers in the e-cigarette market in

2018. Taking over a massive 74 percent of the US e-cigarette
market and with a current net value of $16 billion, they’ve since
signed a deal with Altria. Altria now hold a 35 percent stake for the
price of $12.8 billion, increasing the reach that Juul will have
through all of the sales channels of existing Altria products. This is a
significant move given Juul only hit the shelves in 2015, indicating
that even tobacco companies are aware where the consumers
preferences are shifting.

While Big Tobacco is breaking into the e-cigarette market, many

consumers will still be purchasing from non-tobacco associated
brands. Vapers who engage with the activity as a hobby will
purchase products from specialist vaping brands including the likes
of SMOK and Vaporesso, which offer niche and more advanced
options. While Big Tobacco caters to the entry level e-cig market,
there still exists a whole vaping subculture. These consumers are
the ones who spend big to update, modify and enhance their
experience; and it is a market that the tobacco industry has yet to
tap into.

The legislation:
Legislation that regulates packaging — that is, how cigarettes and
tobacco can be displayed — in addition to price hikes, is affecting
the popularity and accessibility for consumers. Combine that with
more research into the efficacy and comparative safety of e-
cigarettes as well as governing health bodies voicing their support,
you can see the clear trend away conventional tobacco toward e-
cigarettes.

In the United States, the FDA is considering a blanket ban on all

flavored tobacco products. While e-liquids only contain nicotine and
not tobacco, they are still classified as tobacco products. Since the
breadth of variety of e-liquid flavors is a key selling point, this will
significantly impact the e-cigarette market. However, it will also
apply to menthol cigarettes. If the flavor ban does come into play, it
will affect cigarette brands like Reynolds (a part of BAT) who sell
majority menthol cigarettes.

Internationally, many countries have been hiking the prices of

cigarettes and loose tobacco to reduce the accessibility while also
reconsidering their e-cigarette legislation. In New Zealand, they’ve
steadily been increasing the price of cigarettes; some 20-packs now
cost more than $25 NZD ($16.90 USD). They are also looking at
making vaping more accessible, since New Zealand smokers
typically come from lower income areas.

E-cigarettes are heavily regulated in Australia, but the country’s

parliament is re-considering how accessible they should be.
Smoking in Australia is even more expensive than in New Zealand
with a 20-pack ranging from $22.50 to nearly $30 ($21 USD). A
new Switch2Vaping campaign has launched to encourage smokers
to try alternative quitting methods. While e-cigarette users must
have a doctor’s prescription to use nicotine, the Australian market
shows significant potential for a growing e-cigarette market.

Like Australia, France has raising cigarette prices and enforced

neutral packaging on all tobacco products. Since then, France has
also had a significant uptake in e-cigarette use. The estimates are
that the market value will be around 500 million Euros by 2020,
with a current 1.2 million daily vapers and counting.

The UK has been one of the most progressive places for the e-
cigarette market to establish itself. Even with TPD regulations in the
EU limiting the tank size and nicotine strength, the number of
people using e-cigarettes to quit conventional smoking grows every
year. On top of that, governing health bodies like PHE (Public Health
England) and the National Health Service both support and promote
vaping as a safer alternative.

The health factor:

According to the World Health Organization, there are still more than a
billion smokers worldwide. However, with increased research and education
into the effects of the use of conventional tobacco, people are becoming
more motivated than ever to get away from the habit. Tobacco products kill
more than 7 million people a year, and not just the people using them.
Secondhand smoke causes around 890,000 of those deaths annually. Add to
that the study that every cigarette takes 11 minutes off your life, the
research proves time and again the negative health implications of
combustible tobacco. The statistics keep rolling in from the likes of Cancer
Research who have looked into the 7,000 chemicals in cigarette smoke and
the amount of cancers they cause. The National Health Service in England
has explained how every part of your body is affected by smoking.

Even the Royal College of Physicians has put to rest concerns that e-
cigarettes will lead people to conventional smoking. The uptake in smoking
amongst teens is at an all-time low. Secondhand vapor from e-cigarettes has
shown no ill effects and a landmark study from Public Health England has
established e-cigarettes as 95 percent safer than combustible tobacco. This
research is recognized outside of the UK and has affected the policies as far
afield as the US, Australia and New Zealand.
The future of tobacco:
Collectively and in a relatively short time frame, Big Tobacco has started to
see a slowdown in uptake from younger generations. People are more aware
of the health impact, while increasing costs and legislative changes have
made it harder for them to reach a new market. The fact alone that Altria
will be putting information about Juul inside their cigarette packets says a lot
to the future of how nicotine will be consumed by future generations.

E-cigarettes are more widely accepted and more affordable, offer more
flavors and varying nicotine strengths and feature none of the carcinogens
from conventional tobacco. They’ve already proven to be the most viable
means of quitting smoking.

The way the numbers stack up, vaping is taking a portion of what used to be
the smokers market. Juul alone has seen an 800 percent increase in 2018
and takes up a majority portion of the US e-cigarette industry. The UK is
adopting e-cigarettes faster than any other nation with more than 3 millions
regular vapers, around half of which have stopped smoking entirely. Less
youth adoption of smoking, combined with older generations quitting
smoking in favor of vaping means existing markets are waning and new
markets are drying up.

In the coming years, what will define the continued success of e-cigarettes
and decline of tobacco comes down largely to governments and consumer
accessibility to harm-reduction products. Low and medium-income countries
having the highest smoking rates, and incidentally often the strictest
regulations against e-cigarettes. With reforms in the laws against vaping,
they could potentially push the discrepancy between e-cig use and tobacco
use in favor of the safer option. This would further reduce the reach and
profitability of cigarettes, forcing advances in technology and deals like the
one Altria made with Juul. It makes sense — with consumers choosing
vaping products more and more and living longer when they do so, these
products allow brands like Altria and Reynolds to maintain their profit
margins. The shift would ensure Big Tobacco companies survive, even if it is
in a parallel market.
 The Filipino Legislation About Vaping

Tobacco is a major crop in the Philippines generating billions of revenues from

the taxes alone. However, tobacco use is a major culprit in the Philippine
statistical data showing high morbidity and mortality rates, affecting millions of
Filipinos every year. The Philippines House of Representatives surprisingly urges
vaping to be included in the tobacco control strategy in the country. The
legislative body just recently issued a resolution prompting the Department of
Health to promote the harm reduction of tobacco through the use of vapes.
Let’s find out what the Filipino legislation tell more about vaping and how it can
help control tobacco use to reduce its harmful health effects. 

Philippine Legislation About Tobacco

Control Measures
The said resolution was authored by Representatives Jose Tejada and Anthony
Bravo. It references the experience in the United Kingdom, where the public
health authorities have also promoted vaping as a safer option for cigarette
smokers. Vaping involves consumption of oil, concentrates, and dry herbs with
the use of electronic devices called vapes, including vaporizers and e-cigarettes
to produce vapor. Manila Standard (a broadsheet newspaper company in the
Philippines) says that the lawmakers have cited the landmark reports from the
UK’s Royal College of Physicians and Public Health England. The formulated
resolution is not a law or a binding on the Philippine regulators, rather, it’s just
a recommendation by the legislature made to help the health department
regulate vapes without actually banning them.
Some Philippine government officials, earlier this year, have attended a
conference on tobacco harm reduction which was organized by The Vapers
Philippines, a vape advocacy group. Konstantinos Farsalinos, a Greek
Cardiologist spoke about the advantages of substituting tobacco cigarettes with
low-risk nicotine products. He urged the country to adopt and reinforce
regulations recognizing the differences in the risks of smoking and vaping.
Based on the recent survey in 2015 in terms of national tobacco use, 23.8% of
the adult population are smokers. Philippine president Rodrigo Duterte remains
firm in his stance on tobacco control measures, even threatening retailers to be
imprisoned if they are caught selling cigarettes to minors.

The Philippine president is known for his powerful governance, driving a 360-
degree change in the country. Peter Paul Dator (The Vapers Philippines
President) thanks the legislators because they have an open mind when it
comes to vaping as backed up by the scientific evidence that supports e-
cigarettes, vapes, and vaporizers are less harmful alternatives over traditional
tobacco cigarettes. He encourages the Department of Health to also do the
same to save the lives of millions of Filipinos getting sick and dying every year
because of first-hand and second-hand smoke. 

Why is Tobacco Use Alarming in the

Philippines
While the tobacco industry helps many farmers in the Philippines, the
morbidity and mortality rates associated with tobacco smoking are soaring
high every year. In fact, many Filipinos die every year due to smoking-
related diseases which translates to 240 deaths per day or 87,000 deaths
yearly. Lung cancer is the second most common type of cancer in the
Philippines. There are over 12 types of cancers associated with tobacco use.
Experts associate the increasing number of smokers in the country because
of the retail or “tingi” system of selling tobacco cigarettes which are sold
“per stick” in local stores. While western countries directly or indirectly
promote vaping by using vape, mods, vaporizers, and e-cigs, the Philippines
still has a tough clamor for cigarette sticks. There’s also laxity on the part of
the retailers when selling to minors. In fact, cigarette prices in the
Philippines are far more affordable than any other country.  

The Framework Convention on Tobacco Control has recommendations

helping developing countries in fighting against tobacco cigarette hazards.
They recommend raising the awareness of the public about the harmful and
addictive nature of tobacco products in an attempt to encourage the
promulgation of tobacco measures and policies. They also recommend
a stricter implementation of bylaws, avoiding any conflicts of interest among
government officials and cigarette manufacturers and merchants. The
majority of smokers in the Philippines are poor so there is a really great
challenge on how to reduce smoking in the country.

Why Should Filipino Tobacco

Smokers Shift to Vaping 
There are many good reasons why Filipino smokers need to shift to vaping.
Vaporization does not undergo the process of combustion that produces tar
and harmful smoke byproducts. There are a lot of studies and research and
development showing that vaping is a safe and healthy alternative to
smoking. E-liquids or vape juices consist of ingredients found in food such as
vegetable glycerin. Vaporizers and e-cigarettes are electronic devices that
produce vapor which is less harmful than smoking. In fact, some studies
show that vaping can reduce the incidence of lung cancer and other
respiratory problems associated with second-hand smoke.  
Vaporization is a cleaner method of consuming nicotine and this is a good
way to quit smoking. Initially, a smoker may need a higher dose of nicotine
e-juice to prevent withdrawal symptoms, until a gradual reduction in the
dosage will eventually result in total cessation of the smoking habit. There
will be future policies and laws governing the regulation of vaping devices in
the Philippines, opening more gates to Filipino vape manufacturers and
retailers. Vapes have a promising future in the country given the right
support and education dissemination. More than that, these devices can help
smokers get rid of tobacco smoking and resort to a better habit. 

Conclusion
Filipinos have an access to vaping devices through social media channels
and online stores. We see a growing demand for vapes in the last two years
and the recent legislation encouraging the use of these devices to control
tobacco smoking. While it is true that the upfront cost of vaping devices is
more expensive, vaping is cheaper in the long run. The government believes
that vaping can somehow reduce the tobacco use in the country for healthier
Filipino citizens. Vaporizers and vapes have gone a long way globally, and
they are continuously invading different countries, helping smokers quit and
promote a healthier alternative to smoking.  
.