Japan's domestic tobacco market is shrinking as smoking rates decline and health consciousness grows. At the same time, tobacco tax remains an important source of tax revenue, while a move from a state monopoly to privatization is reportedly underway.
Japan's domestic tobacco market continues to shrink against a backdrop of declining smoking rates and growing health consciousness. The market's contraction is viewed as a long-term trend.
Tobacco is considered an important source of tax revenue for the national and local governments, and its fiscal significance is said to remain substantial. In addition, a move from a state monopoly to privatization is reportedly underway as part of the tobacco industry's structural transition.