Fedadov, Russia’s first tobacco consulting company, held a sharing session with the theme of “Digital” (ЦИФРЫ) at the Moscow Digital Business Center.
The conference is a business conference hosted by Fedadov for industry leaders in alternative tobacco products. At the meeting, representatives will analyze the current situation of the Russian market, current laws and other situations.
Fedadov introduced the current situation of the Russian e-cigarette market. According to reports, there are currently a total of 1,025,000 retail stores in Russia, of which 308,000 sell tobacco products, accounting for about
Calculated based on retail prices, the market size of disposable e-cigarettes is as high as 180-200 billion rubles, the market size of e-cigarette oil is 45-50 billion rubles, and the market size of heat-not-burn products is 200-220 billion rubles.
Fedadov shared the top 10 brands of disposable e-cigarettes in the Russian legal market. The following is the brand list.
· ELFBAR · NOQO ·OXIDE · HQD · PONS · XPIPE
· PLONQ · YA MILANO · IGNITE · LOST MARY
Analyzing the Russian e-cigarette market
The Russian e-cigarette market is expected to witness growth during the forecast period 2020-26 due to the increasing desire among smokers for various flavors in cigarettes, which is an easier and more convenient way to smoke, thereby reducing the consumption of harsh substances such as nicotine tobacco. In addition, the increase in e-cigarette flavors has caused many smokers to no longer choose traditional tobacco. The Russian e-cigarette market is expected to grow steadily in the coming period and will provide potential investors in the market with huge investment opportunities.
From a product perspective, the rechargeable e-cigarette segment of the Russian e-cigarette market is expected to dominate the overall market revenue share in the next few years. Rechargeable e-cigarettes are a cheap and effective option. Various new product releases have attracted consumers to choose high-quality e-cigarettes. The market growth of the Russian e-cigarette market is expected to accelerate in the coming years. Due to the lower nicotine usage in e-cigarettes, e-cigarettes are increasingly being used instead of traditional cigarettes, which has stimulated the interest of most consumers in this product. With the diversification of e-cigarette flavors, the country’s growing desire to smoke has attracted the interest of many consumers, resulting in increased demand for the product in Russia, which is expected to benefit the potential growth of the Russian e-cigarette market in the next six years.
With the various fashionable designs of e-cigarettes, more and more women are using e-cigarettes. The increase in female smokers is expected to stimulate considerable revenue for the entire Russian e-cigarette market in the coming period.
Explore business opportunities in the Russian e-cigarette market
The growth of Chinese e-cigarettes in Russia has been enabled by the war in Ukraine, the withdrawal of European and American tobacco manufacturers, and the gradual reduction of foreign e-cigarette brands operating in Russia.
Since the Russian tobacco industry relies heavily on the support and investment of foreign brands, the withdrawal of international tobacco companies will cause a large shortage in the Russian tobacco market, resulting in a significant increase in the price of tobacco products sold in Russia.
As of the end of 2022, there were more than 6,000 stores selling e-cigarettes in Russia, including more than 2,100 in the Moscow region.
According to real estate platform DNA REALTY, the number of tobacco shops in Russia will grow by at least 20% in 2022, with most of the profits coming from e-cigarette sales.
British American Tobacco has announced that it will withdraw from the Russian and Belarusian tobacco markets in 2023. Philip Morris International (PMI) and its subsidiary Philip Morris International are also considering retaining operations in Russia, which is PMI’s seventh-largest tobacco market.
Japan Tobacco suspended investments in Russia and Imperial Brands transferred its Russian operations to a Russian successor.
The article pointed out: “In Russia, e-cigarettes have great potential as an alternative to the tobacco market, and Russian e-cigarette consumers account for 6.8% of the total number of smokers.” “After the United States and Europe, Russia is the third largest electronic nicotine delivery system in the world (ENDS) Importing country.
“China accounts for 90% of the global market. In 2021, China’s exports to Russia reached 82.5 billion rubles. This year it may increase by 35% to 111 billion rubles.”+
Russian e-cigarette bill
On April 1, Russia’s “Honesty Mark” officially came into effect.
On April 11, the Russian State Duma plenary session passed a package of e-cigarette regulatory bills in three consecutive readings, including banning e-cigarette flavoring additives and online sales, offline display of e-cigarettes, and increasing the minimum price of e-cigarettes. Electronic cigarettes, etc.
On April 14, according to Russian media 59.RU, some e-cigarette retail stores in Perm underwent relevant rectifications. Some businesses use blinds to cover their e-cigarette counters, while others use dark glass windows to hide their counters. 59.RU stated in the report that the new e-cigarette ban will not affect large companies, but is likely to cause small companies to exit the market.
Existing dealers only accept legal customs products. Starting from April, e-cigarettes imported from Russia need to provide EAC certification for e-liquid products.
Under a series of regulatory policies, the Russian e-cigarette market can be roughly divided into three situations: large-scale compliance dealers remain on the sidelines; some large wholesalers are dumping goods and hoarding categories. According to feedback from logistics providers, there is currently a slight increase in orders.
The price of disposable e-cigarette products in Russia may rise. The reason is that the government has stated that it will set a minimum price so that e-cigarettes cannot be purchased at a low price anywhere. Retailers say that the cost of e-cigarettes may increase by 200-250 rubles, depending on how the supplier sets the price.
Some domestic e-cigarette practitioners also said that it is beneficial for Russia to set a minimum price, because the current price chaos of e-cigarettes in Russia will disrupt the market.
Most of the e-cigarette practitioners interviewed are relatively optimistic about regulatory policies. Russia has no clear ban on flavored e-cigarettes, nor has it clearly defined the scope of additives, indicating that the Russian e-cigarette market can continue to be presser
There are still opportunities to maintain the market, and adequate supervision will also allow Russia to expand the Belarusian customs market.
