Tobacco Manufacturers NAICS 312230

Oct 28, 2025 - Arizona Law Tightens Youth Access to Tobacco Products

• According to AZPM, Arizona’s new law raising the minimum age to buy or possess tobacco products from 18 to 21 brings the state into compliance with federal regulations enacted in 2019. For tobacco manufacturers, this new law, effective in September 2025, reinforces the need for age-restricted marketing and distribution strategies across all product categories, including cigarettes, cigars, smokeless tobacco, and vaping devices. The law introduces stricter penalties for retailers, making compliance essential throughout the supply chain. While the military exemption exists, enforcement remains limited, minimizing its market impact. Manufacturers should anticipate reduced youth access and potential shifts in demand in Arizona, particularly for flavored and vape products, which are popular among younger consumers. This regulatory alignment may also influence packaging, labeling, and retailer education efforts to ensure consistent enforcement and avoid liability.
• Economic activity in the manufacturing sector contracted for the seventh consecutive month in September, with the Manufacturing PMI registering 49.1%, according to September’s Manufacturing ISM Report on Business. Food, Beverage, and Tobacco Products manufacturers reported growth in production, while reporting slower supplier deliveries, a decline in new orders, lower order backlogs, higher raw materials prices, and lower employment. Manufacturing industries reporting contraction during the period were Wood Products; Apparel, Leather & Allied Products; Transportation Equipment, Plastics & Rubber Products; Paper Products; Furniture & Related Products; Chemical Products; Electrical Equipment, Appliances & Components; Nonmetallic Mineral Products; Machinery; and Computer & Electronic Products. Five industries reporting growth were Petroleum & Coal Products; Primary Metals; Textile Mills; Fabricated Metal Products; and Miscellaneous Manufacturing.

• According to a Reuters report, the United States Postal Service (USPS) has cracked down on distributors of unregulated vapes using its services for business shipments, considered a positive development for US tobacco makers. Letters from the USPS to US-based Demand Vape blocked the company from using its services after being alerted to the illicit shipments by the New York City Law Department. Unregulated vapes do not have authorization from the US FDA to be legally sold in the US. Per the report, “USPS' action stands to benefit tobacco giants including Altria and British American Tobacco, which have for years battled against unregulated vapes, mostly from China.” Demand Vape is contesting the revocation, saying the company operates in a “regulatory grey zone.” The USPS is restricted from mailing vapes directly to consumers under a 2021 law, with a limited exception for domestic shipments between businesses with a “mailing exception.”
• A recent survey by the Premium Cigar Association showed improvement for manufacturers, with 67% saying they performed better in 2024 compared to 2023, 17% of manufacturers performing the same, and 17% doing worse. The First Quarter 2025 survey also revealed that 51% of retailers said they did better in 2024 compared to 2023, with 29% performing the same and 20% performing worse. Cigar manufacturers were asked to list their top concerns, which included rising costs, competitors over-discounting products, connecting with retailers on a timely and regular basis, finding quality sales help, and tariffs and complexity of different state taxes. Retailers were asked what they would like to communicate with manufacturers to help sell their products, and the most common answers were controlling moderate price increases and shipping, limiting high-end offerings and creating more economy cigars, better education/communication, fixing supply issues, and focusing on core lines and not “what’s new.”