New Zealand has accomplished its Smokefree 2025 goal sooner than anticipated, marking a major advancement in public health. The success is made possible by the recent Smoke-free Environments and Regulated Products (Amendment) Bill that has lowered smoking rates to below 5%.
Aotearoa’s retail market is undergoing a transformation, with fewer tobacco outlets and heightened scrutiny on vaping. Retailers now face both obstacles and opportunities. The success of the bill necessitates that businesses dependent on vaping products pivot and explore new avenues for growth.
Policy and Public Health
The achievement is largely credited to the measures introduced by the Smoke-free Environments Amendment Bill, which limits the number of licensed tobacco retailers to 600 nationwide, restricts tobacco advertising, and imposes rules on youth access to vaping products.
These legislative changes aim to reduce smoking rates and also tackle concerns about the growing prevalence of youth vaping. Convenience stores and other businesses that rely on tobacco sales will need to adapt by seeking new revenue streams to avoid financial difficulties.
The reduction in smoking will likely decrease the incidence of respiratory diseases, easing the burden on New Zealand’s healthcare system.
Nancy Loucas, Executive Coordinator of the Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA), has issued a statement regarding the success of achieving the smokefree goal sooner. “Our success story should serve as a wake-up call for countries like Australia that are still clinging to prohibitionist policies,” Loucas concluded. “It’s time to set aside preconceived ideas and concentrate on what works—a pragmatic, harm-reduction approach that prioritises public health over ideology.”
Reaching the smoke-free target comes at the right time, given the ongoing health crises in Aotearoa such as the whooping cough outbreak and the lingering effects of Long COVID. These health issues emphasise the importance of flexible public health strategies. At the same time, New Zealand has also managed to set an example for other countries to focus more on public health by implementing sustainable targets.
Decreasing smoking rates is likely to reduce respiratory complications, which could lessen the impact of whooping cough.
A study published in the European Respiratory Journal, which involved 5,887 smokers aged 35 to 60, found that the prevalence of chronic cough, phlegm, wheeze, and dyspnoea decreased by over 80% after five years of smoking cessation. The most significant improvements were observed within the first year after quitting.
Furthermore, better respiratory health may facilitate recovery for those enduring the effects of Long COVID, particularly among individuals who continue smoking out of habit, whether with tobacco or vaping products.
Business Adaptations and Opportunities
The shift towards a smoke-free future presents both challenges and opportunities for business leaders. Small retailers, particularly in the convenience sector, must navigate the shrinking tobacco market. While the immediate impact may be a loss of sales, for those who sell vape products, these changes also create avenues for growth.
Kiwi businesses can position themselves within a market increasingly committed to healthier living. By focusing on the rising demand for smoking cessation products and services, businesses can align themselves with a growing market prioritising healthier lifestyles.
According to ResearchAndMarkets.com, the global smoking cessation and nicotine de-addiction market is projected to reach USD 50.90 billion by 2030, with a compound annual growth rate (CAGR) of 10.4% from 2024 to 2030.
Another report estimates that the market will expand from USD 28.9 billion in 2024 to USD 69.8 billion by 2034, reflecting a CAGR of 9.2%. Nicotine Replacement Therapy (NRT) is expected to represent a substantial portion of this market, with an anticipated value of USD 10.2 billion in 2024, growing at a CAGR of 9.5% to reach USD 25.4 billion by 2034.
Companies focused on sustainability may find opportunities by aligning their offerings with the government’s green initiatives.
Conclusion
New Zealand’s swift move towards a smokefree future marks a significant turning point for the business industry, reflecting the government’s commitment to public health. Kiwi business leaders, particularly those in retail sector, must adopt innovation and adaptability to thrive.
The change also opens new avenues in the growing health-conscious market while also highlighting the importance of the smoke-free amendment bill to address ongoing health challenges like whooping cough and Long COVID. As business leaders, it would be best to actively contribute to a healthier, more sustainable Aotearoa.