Metaverse and NFT: a new marketing opportunity for the tobacco industry

As the digital world transforms, fueled by the metaverse, NFTs, and virtual reality, the tobacco industry is moving into these new spaces in search of ever-younger consumers. Through smoking avatars in virtual environments and sponsored events in immersive worlds, tobacco companies continue to seize a digital territory that is largely uncontrolled, if not yet regulated.

A Guardian investigation[1] and a report from Vital Strategies[2] Shared at the World Conference on Tobacco Control in June 2025 in Dublin, the research shows how smoking avatars, sponsored events in virtual worlds, and digital objects bearing the image of tobacco brands are being used to reach young, often minor, audiences without any oversight.

A playground particularly exploited by cigarette manufacturers

The metaverse—defined as an immersive 3D internet where users interact through avatars—is already attracting millions of users. According to data cited by Vital Strategies, this market will reach nearly $4 billion by 2030, and could reach more than 500 million people worldwide by 2040. The tobacco industry's first uses of the metaverse have been observed in Indonesia and India. The Djarum brand shared images of avatars smoking at virtual parties organized as part of the campaign on Instagram. Iceperience, with packs of LA Ice cigarettes visibly placed on the tables. In India, ITC sponsored the first-ever wedding in the metaverse, highlighting its Fabelle and B Natural food products – brand extensions from a group whose core business is cigarette manufacturing.

Figure 1 - A pack of Djarum LA cigarettes, an Indonesian brand, is placed on the table. Photo: iceperience.id Instagram via Canary

NFTs, or non-fungible tokens[3], are another emerging promotional modality. These are unique digital assets, usually stored on a blockchain, that allow brands to offer virtual collectibles. The Vital Strategies report cites several initiatives in this area. The DS Group, a smokeless tobacco producer in India, developed an NFT to celebrate its 93rd anniversary, through a mosaic of images glorifying its founders. On a more international level, the partnership between British American Tobacco and the McLaren Formula 1 team resulted in the creation of 22 NFTs of collectible car parts, associated with rewards such as virtual coaching sessions or e-sports competitions.

Finally, advergaming, the integration of advertising into online games designed for promotional purposes, is a particularly effective technique for reaching young audiences. The report documents, in particular, a mobile game released in India to promote candy. Pass Pass Pulse from the DS Group — a brand belonging to a company also active in the tobacco industry. In this game, players collect candies in a playful universe, while the group's logo appears on the screen, creating an implicit association between the food brand and its tobacco products.

Young people massively exposed to these new digital environments

Targeting children and adolescents is central to the tobacco industry's digital strategies. In the metaverse, this exposure is particularly problematic. As the Guardian, more than half of active users of some metaverse platforms are under 13 years old. The Vital Strategies report confirms that "children are very likely to be exposed to tobacco and vaping product marketing in these new digital spaces, due to the demographic profile of users". With some exceptions in certain countries, these advertising practices are strictly prohibited. They are all the more problematic from a public health perspective because there is no effective age verification mechanism in place, and smoking avatars or sponsored brand environments are not accompanied by any health warnings.

This exposure also extends to other formats. "Vape trick" videos are widely shared on TikTok and Instagram by sponsored influencers, some as young as 16. An analysis conducted by TERM[4] A recent study in Indonesia revealed that brands like Vaporesso and GeekVape actively encouraged young people to create promotional content in exchange for free products, VIP status, or compensation. Such practices increase the appeal of vaping by associating it with creativity, online celebrity, and community, particularly among minors.

The effects are already documented. Research cited in the report shows that exposure to this sponsored content, particularly from influencers, increases the likelihood of initiation among young non-consumers. Unlike traditional advertising, marketing in these environments relies on direct interaction and high levels of personalization, further strengthening its behavioral impact.

A regulatory framework that is sometimes insufficient but essentially circumvented because it is difficult to control

In most countries, tobacco advertising is strictly regulated, or even prohibited, regardless of the medium, including these virtual activity platforms. In some countries, regulations need to be supplemented, but the challenge essentially lies in monitoring the application of the laws in force. The metaverse, NFTs, virtual reality environments, and private messaging systems often escape traditional control mechanisms. The tobacco industry takes full advantage of this difficulty to disseminate its brands, products, or values.

The Vital Strategies report highlights several techniques used by the tobacco industry to circumvent existing advertising bans. In India, some companies market food or confectionery products under brand names that are very similar—or even identical—to those of their tobacco products. This practice, known as brand stretching, aims to maintain tobacco brand awareness despite restrictions on their direct promotion.

This strategy isn't limited to food. It can also be seen in the sale of branded clothing or accessories, the sponsorship of concerts and festivals, and the creation of content on streaming platforms. These practices, already widely used in the past, allow the industry to maintain a presence in the public sphere by associating itself with cultural or leisure sectors popular with young people.

At the same time, the report notes that tobacco products, including vaping devices, continue to be promoted and sold via social media accounts like Instagram or private messaging apps like WhatsApp, including in countries where the online sale of these products is strictly prohibited. By circumventing national regulations, manufacturers are once again taking advantage of the difficulty of monitoring trade in private or cross-border digital environments.

Towards increased vigilance regarding these digital environments

Faced with the continued or even growing promotion of tobacco and vaping products in these poorly regulated digital spaces, public health authorities are being reminded of several avenues of action. It appears necessary to first verify that the legislation in force in each country includes this type of media within the scope of the ban on all advertising for these products.

However, strengthening digital monitoring systems is the essential lever for ensuring that current legislation is effective. Tools such as the TERM system make it possible to document these developments, identify problematic campaigns, and provide useful evidence to decision-makers and in the event of prosecutions.

Moreover, in a context where legal boundaries are often difficult to apply to digital environments, enhanced cooperation between states, international institutions, and civil society actors is essential. This coordination would make it easier to apply current regulations and limit disparities in treatment between territories.

©Generation Without Tobacco

AE

---

[1] Kat Lay, Smoking avatars and online games: how big tobacco targets young people in the metaverse, The Guardian, published July 22, 2025, accessed the same day [2] Vital Strategies. The Next Frontier in Tobacco Marketing: The Metaverse, NFTs, Advergames and More. New York, NY; 2023. Available from: termcommunity.com/the-next-frontier-in-tobacco-marketing [3] An NFT is a unique digital object (such as an image, video, or music) that can be bought, sold, or collected, and comes with a digital certificate proving ownership. This object cannot be duplicated because its ownership is securely recorded on the blockchain. [4] THE Tobacco Enforcement and Reporting Movement (TERM) is a digital intelligence system developed by the Vital Strategies organization, designed to monitor and analyze the tobacco industry's marketing strategies on online platforms. National Committee Against Smoking |