Global E-cigarette News in August

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Top 20 countries for China’s e-cigarette exports?

News on July 30, I saw a set of data recently, which is worth sharing. That is, from January 2022 to the present, China’s monthly export of e-cigarettes to various countries and regions.


The data shows that from January 2022 to the present, the top 20 countries and regions in China’s e-cigarette exports are the United States, the United Kingdom, South Korea, Germany, Japan, Russia, Hong Kong, Canada, Australia, Malaysia, France, Croatia, and Kyrgyzstan. , Netherlands, Belgium, United Arab Emirates, Philippines, Switzerland, Kuwait. Among these data, the United States has consistently ranked first in China’s e-cigarette exports, and is far ahead of the second-ranked United Kingdom. The third place is constantly changing among Germany, South Korea, Russia, and Japan. It can be seen from these data that the export rate of Eastern European countries is seriously low.

E-cigarette brand “blu” foundry (OEM) performance decline?


According to news on July 30, Tianchang Group, a company listed on the Hong Kong Stock Exchange, recently announced that the group expects that its revenue recorded in the six months ending June 30, 2023 will be about 30% lower than the revenue of HK$571 million in the same period in 2022. , and the net profit recorded for the six months ended June 30, 2023 will be approximately 60% lower than the net profit of HK$48.6 million for the same period in 2022.


The board of directors of Tianchang Group believes that the decrease in expected revenue and net profit is mainly due to the decrease in sales of electronic cigarette products. Tianchang Group stated that, as disclosed in the company’s announcements dated March 14, 2022 and June 14, 2023, with the cancellation of the exclusivity clause among major customers of electronic cigarette products, sales orders for electronic cigarette products are hereby decreased during the period. It is reported that Tianchang Group is an integrated injection molding solution provider, focusing on mold design and production services as well as injection molding component design and manufacturing services. In recent years, the business has expanded to manufacture electronic cigarette products by OEM. Tianchang Group once carried out OEM (OEM) for the e-cigarette brand “blu” of Imperial Tobacco.


Skier Electronic Cigarette Market!


According to news on July 30, it is reported that Skier’s revenue in the first quarter of this year is 470 million, which is equivalent to the sum of the second half of last year. It is expected that the second quarter of this year will grow by 100% compared with the first quarter. This is a very rare type of company with explosive performance. According to the data on the official website, 20 million vapes are currently shipped per month (at the beginning of the year, the total global disposable e-cigarette market size was 150 million per month, which shows the strength of SKE). Last year, Skier’s revenue was 545 million yuan, and its non-net profit was 87 million yuan. Based on last year’s 16% net profit, the annualized net profit was nearly 600 million yuan. The second half of the year is the peak season for e-cigarettes, which may bring more explosive.


In 2022,Skier launched his own brand SKE overseas, which quickly gained market popularity. According to SKE’s official website, SKE currently has 5,000+ employees, with monthly shipments of 20 million+ sold to 50+ countries.


The Philippines requires e-commerce platforms to stop selling e-cigarettes! ?


According to news on July 30, recently, the Department of Trade and Industry (DTI) of the Philippines plans to issue instructions requiring e-commerce platforms such as Shopee and Lazada to stop selling e-cigarettes until they have sufficient inspection mechanisms to Make sure sellers follow the laws about selling these products.


At present, the e-commerce platform does not implement an age verification system. DTI Deputy Secretary Ruth Castelo (Ruth Castelo) said: “We have talked to them and told them that they need to fix their age verification system and ensure that the e-cigarette products sold No violation of the law. But when was that? Until now, they still haven’t solved these problems.” DTI’s response is to ask them to stop selling e-cigarettes until they solve this problem. These e-commerce platforms include Shopee, Lazada, as well as Facebook marketplaces and TikTok stores, DTI officials said. DTI statistics show that,They have monitored 37,808 online vaping shops. Of these, only 274 were found to be fully compliant, 1,649 were found to be non-compliant but had valid addresses, and 35,885 were found to be compliant but did not provide an address. As of the end of June, the DTI said it had confiscated 1,503 e-cigarettes with a total value of 4.56 million pesos (about 600,000 yuan) from non-compliant stores. Venues and retailers who sell e-cigarette products to minors for the first time will be fined 10,000 pesos (approximately RMB 1,300) or imprisoned for up to 30 days, at the discretion of the court. For repeat offenders, the same fine will be imposed, but the offending business establishment will have its business license or permit revoked. Both physical and online stores need to register with the government to sell e-cigarettes,, Violators will face a fine of 100,000 pesos (about 13,000 yuan) for the first violation and 200,000 pesos (about 26,000 yuan) for the second violation. For the third violation, a fine of 400,000 pesos (approximately RMB 52,000) will be imposed and its business license will be revoked.


American e-cigarettes, will more supervision be strengthened in the future?


News on July 30, the CTP of the US FDA has recently initiated the development of a 5-year strategic plan aimed at advancing its mission.

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According to an announcement on the official website of the US Food and Drug Administration (FDA), the Center for Tobacco Products (CTP) of the FDA will hold a virtual hearing starting at 10:00 a.m. Eastern Time on August 22, 2023, to give the public the opportunity to discuss the five-year strategy. The development of the plan (including the proposed strategic objectives) is open for oral comments, and registered speakers will each have approximately 4 minutes to make oral comments on any topic related to the strategic plan. These target areas will interlink with four cross-cutting themes of health equity, science, transparency and stakeholder engagement. The center plans to publish its strategic plan by the end of 2023, including the collection and consideration of public comments. The proposed target areas are as follows: develop, advance, and communicate comprehensive and effective tobacco regulations and guidance; ensure timely, clear, and consistent product reviews to protect public health; ensure compliance of regulated industries and tobacco products through strong enforcement; Improve public health by increasing knowledge and understanding of the risks of tobacco product regulation and use; continuously improve operational excellence.


Has Russia’s “e-cigarette additive ban list” changed?


According to news on July 30, the members of the Russian Expert Committee recently agreed that the Ministry of Health is developing a “e-cigarette additive ban list” that lists flavoring additives that will be prohibited from being used in tobacco and nicotine-containing products. Expert committee members agreed that the Ministry of Health task force should include relevant federal executive agencies and industry experts. And prepare to submit relevant applications to the government. Make it clear that the Ministry of Health’s list of “flavoring additives” should take into account the views of various interested parties.


Georgi Golovanov, Adviser to the Deputy Minister of State of the Ministry of Finance of the Russian Federation, introduced the work after the adoption of the law “On State management of the production and distribution of tobacco products, nicotine-containing products and their raw materials”, and The specific implementation rules of the regulations. Members of the expert committee paid special attention to the discussion of the procedures for applying for production and import licenses.


British American Tobacco officially launches VUSE in Korea!


According to news on July 30, British American Tobacco (BAT) recently announced that it has launched its vaporized electronic cigarette brand VUSE in the Korean market.


The e-cigarette launched in the Korean market this time is the “VUSE GO 800” model, which has the characteristics of built-in e-cigarette liquid and battery. The product will first be sold in limited quantities in Seoul and surrounding areas, and plans to gradually expand the scope of sales to cover the whole country. According to the information released by BAT, the e-cigarette oil capacity of the “VUSE 800” model is 1.95ml (nicotine content 0.9%). The battery has a capacity of 515mAh and can draw up to 800 puffs on a single charge. According to BAT’s own survey data, as of June 2023, its market share in the United States reached 46%, making it the No. 1 e-cigarette brand in the United States this year.


In 2022, the United States will import about 400 million e-cigarettes


According to the news on July 30, recently, according to the international trade data of e-cigarettes released by the United States International Trade Commission, the import proportion of e-cigarettes in each state of the country and the proportion of e-cigarettes imported by the top five ports were counted.


According to statistics, in 2022, the United States will import about 400 million e-cigarettes, and 99% of the imported e-cigarette products will come from China. Among them, Chicago, Illinois is the most important distribution port for e-cigarettes in the United States. After more than 50% of e-cigarettes enter the United States from Chicago, they radiate the entire Great Lakes region and supply the eastern and central US markets. The Los Angeles port in California on the west coast ranks the second largest e-cigarette distribution port in the United States. More than 30% of e-cigarettes enter the US market through Los Angeles. The Los Angeles port has become the core import port of e-cigarettes in the western United States. The other two ports with an annual import volume of more than 10 million are New York, New York and Savannah, Georgia. The annual import scale of the three major ports in Miami, Florida, Norfolk, Virginia, and Seattle, Washington is at the million level. Since February this year, the proportion of e-cigarettes imported at the Los Angeles port has begun to decline, accounting for only 5%-12% of the national import volume. The proportion of San Francisco, another port in California, rose from less than 1% in January to 8.4% in May, temporarily becoming the third largest import port of e-cigarettes in the United States. Chicago, the largest port, is also growing, with the highest proportion reaching 84%.


Russian President has signed the bill on the personal transportation of nicotine-containing products


News on July 30, recently according to media website 1prime news, Russian President Vladimir Putin (Vladimir Putin) signed a bill that limits the amount of nicotine products that are not marked in compliance with Russian law in Russia. . According to the document, individuals over the age of 18 can now carry no more than 200 heated tobacco products, no more than 5 units of other nicotine-containing products (excluding heated tobacco products), and a total of no more than 20ml of nicotine-containing liquid. At the same time, there is also a limit on the total weight of unmarked non-tobacco heated mixtures transported, which must not exceed 250 grams.


The bill sets limits on the quantity of unlabeled nicotine products carried by individuals in order to comply with Russian law. The annexes provided by the bill show that the illicit market for e-liquid and disposable nicotine delivery devices (disposable electronic cigarettes) has grown by an average of 20% per year, accounting for about 90% of the total market for such products in Russia by mid-2022.


According to news on July 30, it is reported that the Russian VAPE CLUB SHOW will be held in Russia from December 9th to 10th, 2023. The exhibition is the largest exhibition event of the Russian electronic cigarette industry. The exhibition venue covers an area of ​​15,000 square meters.


Yekaterinburg, where the exhibition is held, is the fourth largest city in Russia. It is also the economic center and main transportation hub of the Ural region of Russia. It covers most of the smoking areas and has a relatively good e-cigarette management policy. The exhibition lasts for two days. The first day is a B2B mode, with professional forums, quick meetings and other activities to discuss the development of the Russian e-cigarette market, quickly link dealers and brands, and facilitate transactions and cooperation between all parties; the second day is a B2C mode, and audience interaction will be set up on the spot During the competition and awards, enterprises can sponsor products as prizes to expand brand awareness. In June, VAPE CLUB SHOW attracted 195 brands, more than 8,500 people, and more than 4,000 retail stores to participate.


Ukraine approves electronic excise tax on alcohol and tobacco!

An EU report on the health and environmental risks of e-cigarettes is due by the end of 2020. EU regulations also restrict e-cigarette liquids

According to news on July 30, Zelensky recently approved the imposition of an electronic consumption tax on tobacco and alcohol.


It is reported that the President signed the law on the imposition of electronic excise tax on alcohol, tobacco products and liquid products. At the same time, the electronic excise stamping and traceability system will start operating in Ukraine in January 2026.


Japan Tobacco International Enters Korean Convenience Stores!


According to news on July 30, industry insiders recently revealed that Japan Tobacco International (JTI) South Korea plans to replace the cigarette display cabinets in convenience stores in early 2024 and put its own heated tobacco products on the shelves.


At present, the specific type of new electronic cigarette products has not been determined, but the launch of new electronic cigarette products has been considered. When the Korean heated tobacco market is developing rapidly, JTI entered the market relatively late and lagged behind its competitors. Now there are three major competing product brands in the Korean heated tobacco market. KT&G’s “Lil” occupies the first market share, Philip Morris International’s “IQOS” ranks second in the market, and BAT’s “Glo” ranks third in the market. JTI plans to launch new heated tobacco products in more than 10 countries in the near future, and will expand to 20 countries by the end of 2024. This plan provides impetus for JTI’s second attack in the Korean market.


Production of e-cigarettes without a license in Russia will be fined or reeducated through labor!


On July 25, according to the Russian Parliament newspaper, the Russian State Duma passed a package of laws on the regulation of nicotine-containing products (No. 310899-8, No. 310855-8, No. 1123777-7).


The bill stipulates that from March 2024, a licensing system will be implemented for the production, storage and distribution of tobacco and nicotine-containing products. Without a license, the equipment will be confiscated and the company will be fined up to one million rubles. Large-scale underground production will be punished with up to three years in prison or re-education through labor. From March 1, 2024, the production, storage and supply of cigarettes and nicotine products will only be permitted with a license. If the license does not exist or is suspended, the device should be archived. Retail sales are exempt from licensing requirements. The government plans to track tobacco and e-cigarette turnover through a special monitoring system.


Azerbaijan requires warnings on e-cigarettes


News on July 30, recently according to reports, Azerbaijan, an Eastern European country with a population of more than 10 million, is requiring all e-cigarettes to be marked with potential health risks in Azerbaijani on the packaging to comply with current regulations. This move is to protect the rights and health of consumers and ensure that people get the necessary information.


According to Azerbaijan, retailers (producers) must provide consumers with necessary and accurate information about the characteristics of the goods they sell, conditions of purchase, methods of use, storage and safe use of goods. According to Article 13, paragraph 1, of the law, this includes providing consumers with the necessary and accurate information on the characteristics of use of goods, conditions of acquisition, methods and rules for the use, storage and safe use of goods. All imported tobacco products, including disposable e-cigarettes, must have warnings in Azerbaijani language on their packages informing the public about their harmful effects on health.


British American Tobacco e-cigarettes contribute £201 million in profits!

According to news on July 30, British American Tobacco (BAT) recently released its semi-annual performance report. In the first six months ending June 30, 2023, its revenue increased by 4.4%. 16.6% of revenue; reported operating profit up 61.4%. The financial performance of the new tobacco has improved significantly, contributing 201 million pounds to the group’s profit, and plans to achieve the profitability target of this business in 2024.


BAT pointed out in the report that its vaporized e-cigarette brand Vuse and snus Velo continued to achieve strong revenue growth. At the same time, the launch of the heat-not-burn product glo Hyper X2 Air laid the foundation for future innovation. Novel tobacco contributed around £201m ​​to the profit increase. New types of tobacco are playing an increasing role in performance, with revenue increasing by 29% year-on-year, and users of non-combustible products increasing by 1.5 million compared with last year. He is confident in his future contribution and expects positive growth in 2024. At the same time, he also said that the US market still needs more attention, but the gradual improvement in the performance of the high-end tobacco business since 2023 is encouraging.


Over 60% of the public in Ireland supports the ban on one-off sales?


According to news on July 30, a recent survey conducted by the Irish independent polling agency Ipsos found that 64% of respondents supported the ban on the sale of disposable e-cigarettes, only 28% opposed the measure, and 8% expressed uncertainty.


The charity’s submission also highlights the environmental hazards of single-use e-cigarettes, which cannot be recycled and contain plastic, copper and lithium batteries. Ireland has announced a public consultation on vaping.

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