The WHO's demonising of lower-risk alternatives to cigarettes is giving governments seeking to protect their tax base both moral and legal justification for restricting reduced-harm products and is perpetuating 8+ million tobacco-related deaths a year.

Declines in RLX and Smoore highlight the importance of rigorous regulatory risk assessment. Governments' desire to protect revenue and the abstinence-based approach of the WHO suggests growing regulatory pressure. Still, investors remain positive.

Nicotine pouches have a significant role in tobacco harm reduction in Emerging Markets but will require engagement with all local stakeholders and lower product costs.