From “Burj Khalifa” to “Nile River”, a “golden line” of electronic cigarettes!
Recently, many customers have asked about Egypt. Some brand companies also said, “Everyone is grabbing the Egyptian market.”
Just walked out of the 828-meter Burj Khalifa in Dubai, whether the next stop is the direction that many factories/brands have to think about, how to find a golden line to penetrate the Middle East and North Africa market, and then use electronic cigarettes in the Middle East and Eurasia Connect to a line to form a global strategic layout with extremely high concentration!
At this time, many factories paid attention to the “Nile River”. The sphinx, pyramids and other symbols of ancient civilization and culture stand proudly on the land of Egypt by the Nile River, blending with the desert hills and the quietly flowing river, which is fascinating.
From the Persian Gulf to the Nile River and the Mediterranean Sea, a golden bay commercial line!
On the Nile River, on the shore of the Red Sea, there is a key country-Egypt.
Egypt connects Europe and Asia, with the Mediterranean Sea to the north, Europe in the past, and a large area of Africa to the west, such as Libya, Algeria, Morocco, and Tunisia.
To the south is Sudan. In the northeast are Syria, Turkey, Iran, Iraq, Armenia, Georgia, etc.
To the east are Saudi Arabia, United Arab Emirates, Jordan, Kuwait, Bahrain, Yemen, Oman, etc.
Such a “central hub” of Egypt has an open economic system, just like a golden bay business bloodline, which is especially critical for the deployment of e-cigarettes in Africa and other regions. Its commercial status is particularly high, and it is the transportation hub of Asia, Africa, and Europe. It is an international trade channel area that connects the Mediterranean Sea and the Red Sea, and then connects the Atlantic Ocean and the Indian Ocean.
Egypt, the “strategic portal” for the layout of e-cigarettes.
Egypt, the “gateway” connecting the Middle East and Africa.
Egypt is the gateway to Africa from the Middle East, and the “central hub” of the e-cigarette vapor industry in Africa. Since the legalization of e-cigarettes in 2021, Egypt has opened a “legal door” for the African market to enter.
It is worth noting that the MEVS Egypt Electronic Cigarette Exhibition has entered the countdown. From July 6th to 8th, 2023, (MEVS – Middle East Vape Show 2023) will be held at the Cairo International Exhibition Center in Egypt. MEVS2023 is the largest e-cigarette exhibition in Egypt so far. Preliminarily, more than 80 e-cigarette companies will participate, including well-known brands such as UWELL, ELF BAR, SMOK, MKGVAPE, LAFIVAPE, etc. The main exhibits will include open oil filling, disposable, and large vaping equipment. Especially under the background that one-offs have not yet occupied the Middle East and Africa, many brands are also rushing to enter Egypt at one-off time.
Due to the short time since the ban was lifted, e-cigarettes in Egypt are still an emerging market. Therefore, for overseas e-cigarette companies, compared with Europe, America and Southeast Asia, the Egyptian e-cigarette market obviously has much greater growth potential.
In terms of policy, Egypt has incorporated electronics into legal regulation and actively supports the commercialization of e-cigarettes. In terms of e-cigarette taxation, according to the Egyptian Customs’ response to e-cigarette distributors, Egypt has confirmed the tax to be paid on e-cigarette oil, which is 2 Egyptian pounds (about 0.4 yuan) per milliliter of e-cigarette oil, and the scope of collection includes Various flavors of nicotine and non-nicotine e-liquids. In 2021, Egypt will include the definition of e-cigarettes and heated tobacco into the implementation regulations of the “Law on Prevention of Smoking Harm”, and officially lift the ban on e-cigarettes, marking a new milestone for e-cigarettes in the region.
There are several considerations for doing Egypt:
1. Behind Egypt lies the Middle East and Africa.
2. Egypt has stepped into the market path of special regions. E-cigarettes are also highly recognized.
3. E-cigarettes in Egypt are being commercialized, which is a good starting point.
4. In a country that has just lifted the ban on e-cigarettes, the annual growth rate is expected to be 15%, and the growth potential is visible.
Statistics show that smoking rates in Egypt are very high, with 18 million people smoking in the country of more than 104 million people. Smokers concentrated in the age group of 35 to 44 years old. The survey also shows that the average annual expenditure of Egyptian families on smoking is 2,665 Egyptian pounds (about 612 yuan).
There is also concern that many adult smokers are gradually switching from smoking to vaping as a way to quit or reduce harm. Of course, the lifting of the ban highlights the progressive attitude of the Egyptian authorities towards vaping and lays the foundation for the creation of a regulated market full of business opportunities by satisfying the demand of legal-age (adult) consumers for easily accessible quality products.
At present, there are already large-scale distributors launching e-cigarette retail layout in North Africa. For example, ANDS, a large dealer and brand this year, is looking for a market for tens of millions of tourists. The e-cigarette channel in the Middle East and North Africa has been opened from tourism retail to reach 140 million adult smokers in the Middle East and North Africa and provide them with better alternatives. . Egypt’s Eastern Company, the largest tobacco company in Egypt, also stated that studies have shown that e-cigarettes are less dangerous alternatives to traditional cigarettes, and users have a high demand for them. E-cigarettes have been developed and produced locally in Egypt.
At present, Egypt is joining the globalized regional market, and the future can be expected. Egyptian authorities have now opened the door to numerous business and investment options. Licensed vaping products are traditionally retailed by small and medium-sized businesses, so the move will support existing businesses selling such products and will attract entrepreneurs looking to set up new retail locations across the country.
The development potential of the Middle East is huge. Dubai is the “key” to open this market, and Egypt is a “window” to enter the African continent!
In what way, the most original way to open the Egyptian market?
A large number of Chinese electronic products are sold to Africa, and electronic cigarettes are also developing such a market.
The Egypt Vape Expo 2023 in Cairo, Egypt in the summer of May this year attracted attention and attracted many Chinese e-cigarette brand companies to participate. It is worth noting that there will be an exhibition in Egypt in the next July, from July 6th to 8th, 2023, (MEVS—Middle East Vape Show 2023) will also be held at the Cairo International Exhibition Center in Egypt.
Look carefully at the list of Chinese companies, such as SMOK, YUOTO, VOOPOO, INNOKIN, VAPORESSO, OXVA, PURA, VOZOL, ESMOO, EXTRA, FirstUnion, Geek VAPE, PRO VAPE, HQD, FUMOT, LANSVAPOR, MR FOG, REKA , Silvaper, WEETO, aiir, JWEL, ANYX, MYLE, FOGER (fogger technology), KINGZONE, MKGVAPE,LAFIVAPE,etc., more than 30.
(Many companies on the list are from China)
In terms of scale, compared with some e-cigarette events in the United Kingdom, Spain, Germany, Italy, and the United States, the scale of exhibitors is smaller, but it also shows that there are a lot of e-cigarette companies in a regional market.
(The picture shows the booth map of the Egyptian Electronic Cigarette Exhibition in May)
Well-known Chinese e-cigarette brands such as YUOTO and VGOD (Huadian Times Technology) are also important sponsors of this event in Egypt.
At the same time, FUMMO, a popular brand in the Middle East, also participated in the activities in Egypt.
Older and well-known brand companies such as Jier Technology, Smoore, AVPS, kingzone, Hqd, Heyuan Group, and Juwei Group have all participated in the snatching of the North African market.
What kind of e-cigarette regional market is Egypt?
Looking at the development of e-cigarettes in the Middle East from North Africa.
Egypt, with a population of 109 million, is the true central hub of the Middle East and North Africa. It is located in the middle of the world and has a unique geographical location.
To the east are Israel, Iraq, Kuwait, Saudi Arabia, the United Arab Emirates, Turkey and other Middle Eastern countries; to the west are African countries such as Libya, Tunisia, and Morocco; to the north are European countries such as Greece, Bulgaria, and Italy.
After Egypt lifts the ban on the sale, import and marketing of e-cigarettes in 2021, it will become another country in the Middle East that has legalized e-cigarettes. As an emerging market, the growth potential of the Egyptian e-cigarette market is obviously much greater.
Thousands of professional e-cigarette channel buyers from North Africa and the Middle East gather here every year, establishing new business contacts with e-cigarette suppliers, manufacturers, and brand owners from all over the world gathered here, and promoting e-cigarette business in Egypt and other regions .
Egypt pays attention to the maintenance of the e-cigarette business environment and the fight against counterfeiting of e-cigarettes. Last year the Industry Committee of Egypt’s House of Representatives passed new legislation targeting counterfeit brands and products, both locally and globally, imposing severe penalties on producers. The Egyptian authorities’ decision reflects their commitment to supporting legitimate businesses in the country, while combating the illicit trade in some products.
The country encourages channel opening. Licensed vaping products are traditionally retailed by SMEs and attract entrepreneurs looking to set up new retail outlets in the country to set up shop in the country, and market-oriented vaping brands attract investment in the country.
At the same time, Egypt has a high smoking rate and fertile ground for business and investment. The smoking rate in Egypt is relatively high now (33.8% of men over 15 years of age smoke). The good news is that adult smokers are gradually switching from smoking to e-cigarettes as a way to quit smoking or reduce harm.
In terms of policy, the Egyptian Organization for Standards & Quality is responsible for regulating e-cigarettes. Relevant requirements, such as if the e-liquid contains nicotine, the nicotine concentration must not exceed 30 mg per milliliter. The volume of the e-cigarette liquid filling container of e-cigarettes shall not exceed 10 milliliters, and the volume of disposable cartridges (cans) containing e-cigarette liquid shall not exceed 2 milliliters. Companies that import and produce e-liquid must set up a special committee for registration, and only e-liquid companies registered by the committee can be imported or produced in Egypt. On the packaging, in the case of imports, the name of the manufacturer or importer and the country of origin must be stated…
Smoke oil is taxed. According to the Egyptian Customs, Egypt has confirmed the tax to be paid on e-cigarette oil, which is 2 Egyptian pounds (about 0.4 yuan) per milliliter of e-liquid. Oil. Tobacco sticks are subject to VAT as general items. In addition, Egypt will deduct 10% of the price of each sales unit from the price of retail terminal sales to support the health insurance system.
In North Africa, what direction should the brand and product export focus on?
Egypt’s geographical location determines its market position in Africa and the Middle East.
Going to Egypt is to open the country from Egypt to enter the e-cigarette market in various regions of Africa, which is very important for the brand’s regional strategy.
At the same time, some differences can be seen from the e-cigarette products in Egypt.
For example, the product focuses on the design of some Egyptian culture, such as products with ancient Egyptian cultural elements such as snakes, and e-liquid designed in the shape of Egyptian pyramids. In terms of appearance or packaging, there are certain regional differences, and the colors tend to be black, purple, and gold.
The demand and market characteristics of e-cigarettes in Egypt are similar to those in the Middle East.
Users also pay attention to the demand for large number of puffs, as well as features such as e-liquid volume, large battery, and smart screen display.
For example, the product form that Zunyipin brought to the scene this year is a disposable electronic atomization device with a smart display screen, and the number of ports is also large; every time it is used, the real-time oil level and power will be displayed on the screen to help eliminate low power Anxiety, avoid dry burning; different from conventional rod-type disposable electronic cigarettes, it is square box-shaped, compact, stylish in appearance, excellent in workmanship, colorful in color, and simple and smooth in overall shape.
VAPORESSO exported new LUXE XR MAX and XROS 3 NANO devices in Egypt, with longer battery life and excellent flavor performance, focusing on open devices.
Geekvape exported the Geekvape Wenax K2, Geekvape Q series and Geekbar meloso series in Egypt with the smartest touchscreen box ever, sleek and well polished metal pod system, impressive battery life and smart LED indicators to deliver Hassle-free experience. There are open oil fill and also disposable.
However, judging from the scene in Egypt, there are a lot of e-liquids, which shows that the demand for canned e-liquids in this region is very strong.
To occupy a leading position in the regional market, many brand companies are working hard on technology, products and channels.
Since Egypt’s e-cigarettes were legalized, the market has shown further growth and development, and it has become the first position for enterprises to enter the North African market.
At present, Egypt is replicating some markets in Europe and the United States a few years ago, with rapid growth, joining the global and regional market competition, and will also be a country of concern for many Chinese e-cigarette factory brands to grab the market. Especially with the legalization and commercialization of e-cigarette consumption in the Middle East, it will continue to grow steadily in the next few years!
