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Regulatory Background In early January 2026, the State Tobacco Monopoly Administration (STMA) issued a regulatory announcement on nicotine pouches , clarifying that products meeting specific criteriaincluding nicotine as a primary ingredient and oral consumption without combustionwould be classified as tobacco monopoly products

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Given the concerning trends highlighted in this report, including the first increase in cigarette sales in two decades, the Commission will continue to expand its approach in reporting shifts in the tobacco industry, the FTC said