Plain packaging laws, which ban any branding, colours or design on cigarette packs, have been called a ‘major threat’ to the tobacco industry by a prominent anti-smoking campaigner. Simon Chapman, professor of public health at the University of Sydney, commented that "this is unequivocally the biggest thing ever to hit the tobacco industry – the biggest threat it's ever faced”.

Chapman has been instrumental in the plain packaging row in Australia, proposing the ban in a research paper in 2008 and thereafter leading the campaign that eventually saw the legislation pass in 2011. Mr Chapman made the comments whilst visiting the UK last week, where he has been advising the public health community ahead of the consultation on bringing plain packaging into law over here.

Whilst Australia has led the way with the plain packaging ban, several other states and countries around the world are said to be considering bringing similar bans into force, with seventeen states recently attending a World Health Organisation summit on the topic.

Although the ban on branded packaging is aimed at reducing the temptation for young people to take up smoking, there is likely to be a huge impact on the profits of tobacco companies. One area where profits are expected to be hit is premium priced cigarettes. If tobacco firms are no longer allowed to print any branding on their packets of cigarettes, leaving only the name on the packet, there will be little room to create appeal to different target markets. It may therefore become difficult for manufacturers of premium-end cigarettes to sustain their premium price, therefore cutting their profit margins.