As tobacco use has fallen in the United States and other Western countries in the past 20 years, tobacco companies have directed their efforts towards the developing world, especially Asia, with increasing success. Currently, 1.3 billion people worldwide are regular tobacco users, or roughly one-third of the world population. Around 85 percent of these tobacco users smoke some form of cigarette. Three hundred million men smoke cigarettes in China alone, more than the entire population of the U.S.

It is estimated that 5 million people die every year from tobacco-related complications and diseases, which is roughly 9 percent of annual global deaths, more than all the annual deaths from AIDS, motor accidents, and murders combined. Tobacco-related illnesses account for a $200 billion annual loss in worker productivity.

The “Growth Market”

Tobacco companies refer to these developing countries as “growth markets” and have indeed been able to offset declining U.S. sales by picking up market shares in other countries where advertising legislation and consumer education are almost non-existent. Youth smoking rates have skyrocketed in Eastern Europe, India, and the Pacific Islands. It is estimated that half of the current smokers today, or 650 million people, will die prematurely as a result of tobacco use.

The most immediate way to fight this global epidemic is through prices. The World Bank estimates that for every 10 percent increase in tobacco prices, usage falls 4 percent in developed countries and 8 percent in developing countries. Though education and youth smoking prevention are also important, tobacco taxation remains the most immediate and potent way to combat global tobacco use.