2Firsts Annual Review: Top 10 Global NGP Industry News of 2024

Explanation:

The top ten news stories of the year were selected and analyzed independently by 2Firsts.

The company, brand, and product names mentioned in this article are used solely for industry analysis purposes and should not be considered as endorsements or investment advice.

At the 2025 NGP Global Compliance Development New Year Symposium, 2Firsts CEO Zhao Tong revealed the top ten news stories in the global new tobacco industry for 2024, reviewing key events that profoundly impacted the industry over the past year and focusing on industry reform and development trends.

At the same time, the editing team of 2Firsts provided in-depth analysis of the top ten news stories, offering attendees a comprehensive professional perspective and insight.

In 2024, the global new tobacco industry is undergoing a profound reshaping driven by increased regulation and technological innovation. Every policy announcement and technological breakthrough in this year leaves a lasting mark on the industry. As a leading media outlet and think tank in the new tobacco industry, 2First has compiled and released a list of the top ten news events that will have a significant impact on the global new tobacco industry in 2024.

Regulatory actions on e-cigarettes are increasing in the United States, and the market is bracing for major changes

The first non-tobacco flavored product has passed PMTA, making a significant breakthrough in the market.

In June 2024, the U.S. Food and Drug Administration (FDA) approved the pre-market tobacco product application (PMTA) for four NJOYmint flavored e-cigarette products, marking the official FDA recognition of non-tobacco flavored e-cigarettes.

Law enforcement efforts continue to increase.

In June 2024, the FDA, along with the Department of Justice (DOJ), Customs and Border Protection (CBP), and other agencies, formed a task force to crack down on the illegal distribution and sales of e-cigarettes.

In the year 2024, the Chicago office of CBP conducted a total of 121 seizure operations, confiscating over 3.2 million illegal e-cigarette products with a total value exceeding $81.5 million.

The FDA is taking a comprehensive approach to regulating and enforcing against illegal e-cigarette retailers, manufacturers, importers, and distributors by issuing warning letters, civil penalties complaints, injunctions against tobacco sales, import alerts, detentions, import bans, and criminal prosecutions.

Political forces take action to crack down on illegal e-cigarette products.

On December 4th, U.S. House Representative Raja Krishnamoorthi announced the official launch of an investigation into the illegal importation of e-cigarettes. He sent inquiry letters to five Chinese manufacturers and six American wholesalers and distributors. This signifies the involvement of political forces in cracking down on illegal e-cigarettes.

The American market is poised for significant changes.

At least three parties are driving the crackdown on illegal e-cigarettes, including administrative enforcement agencies such as the FDA, political forces, and international tobacco companies. Their determination and goal is to change the current situation of illegal e-cigarette prevalence in the US market. By 2025, the US e-cigarette market can expect to undergo significant changes.

Multiple European countries have announced a ban on disposable e-cigarettes: the product boom may be reaching a critical turning point.

Since 2021, disposable e-cigarette products have swept the globe, profoundly changing the entire e-cigarette industry chain, from the supply chain, distribution channels, to consumer behavior. The popularity of disposable e-cigarettes has greatly increased the consumption penetration rate of e-cigarettes, encouraging more tobacco consumers to try e-cigarettes. However, on the other hand, the significant environmental and youth-related issues associated with disposable products have also attracted deep concern from governments around the world.

On January 29, 2024, the UK government announced that it will ban the sale of disposable e-cigarettes. In October of the same year, they confirmed once again that sales of disposable e-cigarettes will be banned nationwide from June 1, 2025, in response to the rising rates of youth use and increasingly prominent environmental issues. Prior to this, several European countries including France and Belgium have also announced or are in the process of implementing legislation to ban disposable e-cigarettes.

• France: In February 2024, the Senate passed a bill banning the production, sale, distribution, or free provision of disposable e-cigarettes, with violators facing fines of up to 100,000 euros.
• Belgium: In March 2024, the European Commission announced its support for Belgium's ban on the sale of disposable e-cigarettes. As the first country in the European Union to prohibit the sale of disposable e-cigarettes, the ban will come into effect in January 2025.
• Poland: The ban, originally scheduled to be implemented before the summer vacation, has been delayed until early 2025 due to legislative progress.
• Germany: The Federal Ministry for the Environment (BMUV) will push for regulations restricting disposable e-cigarettes across the European Union in October 2024. In December 2024, representatives from most federal states supported amending the Electrical and Electronic Equipment Act to further limit the use of disposable e-cigarettes.
• Ireland: From March 2024, multiple rounds of legislative discussions have been held on disposable e-cigarettes, and in September, the Cabinet approved a draft legislation to ban disposable e-cigarettes.
• Spain: In October 2024, it was announced that there will be revisions to the Royal Decree 579/2017, which will include provisions banning disposable e-cigarettes and their flavors.

Disposable e-cigarettes are gradually moving from being a "hot seller" to being subject to strict regulation, signaling a new turning point in the development of these products.

Australia and China collaborate to combat illegal e-cigarette trade: An innovative exploration in global governance of illegal e-cigarette trade.

Australia has become the first country in the world to implement a prescription system for e-cigarettes. The strict sales and purchasing restrictions have led Australia to face significant challenges in illegal e-cigarette trade. As we enter 2024, Australia continues to strengthen its regulation of e-cigarettes, with a particular focus on its collaboration with China in combating illegal e-cigarettes.

On May 6, 2024, the Deputy Commissioner of the Australian Border Force, Mr. Fitzgero, traveled to Beijing to meet with the Director of the State Tobacco Monopoly Administration, Mr. Zhang Jianmin.

Chinese Premier Li Keqiang made an official visit to Australia from June 15th to 18th, 2024. The two countries released a joint statement titled "Annual Meeting Outcome Joint Statement by Chinese and Australian Prime Ministers," which included a commitment to strengthen cooperation in combating illegal tobacco and e-cigarette smuggling.

On July 30, 2024, Director of the Australian Illegal Tobacco and E-cigarette Authority, Alan Dai, traveled to Beijing to meet with Deputy Director of International Affairs at the State Tobacco Monopoly Administration, Wang Gongcheng.

In just six months, the governments and regulatory agencies of both countries have held multiple high-level meetings to discuss cracking down on illegal e-cigarette activities.

Illegal e-cigarette trade is facing multiple challenges in various countries due to its complex communication channels and easily concealable product features. The regulatory cooperation between Australia and China on e-cigarettes has become an innovative and exploratory approach to combatting illegal e-cigarette trade globally, providing new ideas for e-cigarette regulation in other countries and strengthening global cooperation in e-cigarette regulation.

Southeast Asia tightens e-cigarette regulation: Compliance barriers raised in emerging markets.

Southeast Asia has become an important destination for China's e-cigarette exports due to its geographical advantage. In 2024, countries such as Malaysia, the Philippines, and Indonesia have all strengthened their regulations on e-cigarettes. Contrary to expectations of policy relaxation, Vietnam and Thailand further clarified their prohibitions on e-cigarettes in the same year.

Malaysia: Tightened Tobacco Regulations in 2024

In June 2024, Malaysia passed the 2024 Public Health Tobacco Control Product Act (Act 852), banning tobacco sales in educational institutions and online marketplaces. The law also introduced new requirements for the registration and packaging of tobacco products. Additionally, individual states have legislative authority, such as Johor, which has prohibited the sale of e-cigarettes in commercial spaces since 2016.

The Philippines: Intensified Crackdown on Illegal E-Cigarettes

The Philippines launched a series of actions to combat illegal e-cigarettes throughout 2024. In February, the Bureau of Customs’ Intelligence and Investigation Service seized a shipment of Flava-branded e-cigarettes worth $70 million. This event marked the start of a months-long enforcement campaign targeting illegal e-cigarettes. Besides cracking down on unauthorized products, the country also implemented strict product certification procedures (PS Licenses), mandating that only certified products may be sold legally.

Vietnam: A Ban on E-Cigarettes and Heated Tobacco

In November 2024, Vietnam issued a resolution prohibiting the production, trading, importation, storage, transportation, and use of e-cigarettes and heated tobacco products, effective January 2025.

Indonesia: New Regulations for Tobacco Packaging

Under Government Regulation No. 28 of 2024, Indonesia mandated more prominent health warnings on tobacco packaging. Additionally, e-cigarette sales are now banned within 200 meters of educational institutions and children's playgrounds.

Thailand: Legislative Push to Ban E-Cigarettes

In December 2024, the Chair of Thailand’s Special Committee on E-Cigarette Legislation and Regulation proposed classifying e-cigarettes and heated tobacco products as illegal substances. The proposal includes drafting new laws to completely ban the production, importation, sale, advertising, marketing, possession, and use of e-cigarettes.

Major Tobacco Companies Embrace "Smoke-Free" Transformation

The world’s four major tobacco companies (Philip Morris International, British American Tobacco, Japan Tobacco, and Imperial Brands) reported growth in their new tobacco businesses—led by heated tobacco, e-cigarettes, and nicotine pouches—in their 2024 half-year reports. Their commitment to "smoke-free" transformation highlights the industry's accelerated shift from traditional cigarettes to new tobacco products.

• Philip Morris International (PMI): PMI posted a net revenue of $18.261 billion in H1 2024, with operating profits rising by 22.5% year-over-year to $6.489 billion. The company shipped 68.678 billion units of heated tobacco products and 486 million cans of oral nicotine products, with the latter seeing a 31.2% year-over-year increase, driven by the U.S. market's ZYN nicotine pouch sales, which surged by 50.3% to 135.1 million cans.
• British American Tobacco (BAT): BAT recorded H1 revenue of £12.34 billion, down 8.2% year-over-year, with operating profits falling by 28.3% to £4.258 billion. However, revenue from new tobacco products rose to nearly 18%, up 1.4% from 2023, as smoke-free product consumers reached 26.4 million.
• Japan Tobacco (JT): JT reported H1 revenue of ¥1.5699 trillion ($10.6 billion), up 12.7% year-over-year, and a net profit of ¥305.2 billion ($2.05 billion), a 6.3% increase. Heated tobacco product sales grew by 25.5%, with its flagship Ploom product showing 36% growth in Japan and steady expansion across 21 markets worldwide.
• Imperial Brands (IMB): IMB reported a 2.3% drop in revenue to £15.1 billion in H1 2024 but saw adjusted operating profit grow by 2.8% to £1.67 billion. Sales of its new tobacco products (NGP), including Pulze heated tobacco and Blu e-cigarettes, increased by 16.8%, with European revenue growth driven by markets like Italy, Greece, and Portugal, where NGP accounted for over 25% of total tobacco and NGP net revenue.

E-Cigarette Supply Chain Debt Crisis: Restructuring Accelerates

China, the global manufacturing hub for e-cigarettes, provides over 90% of the world’s e-cigarette production. After nearly five years of rapid growth, the industry is entering a consolidation phase. Fierce competition among brands and markets has led to differentiation in the supply chain, with leading companies securing a dominant share, while smaller firms struggle with insufficient orders, cash flow shortages, and debt crises, leading to bankruptcies.

• Key Examples:
  • Juste: Announced self-liquidation in June, applied for bankruptcy restructuring in August, and released an investor recruitment notice in December.
  • Voopoo Tech: Ceased operations in July and entered bankruptcy proceedings.
  • Max: Employee representatives filed for bankruptcy liquidation in September, with formal proceedings announced in December.

CNIHK Hong Kong’s Accelerated Push into Global Markets

In September 2024, CNIHK, the only tobacco-focused publicly listed entity under China Tobacco, led a 66-member team to exhibit at InterTabac in Dortmund, Germany. Showcasing over 100 heated tobacco product SKUs and 30 cigar products from 13 Chinese industrial companies, the event marked a historic milestone for China Tobacco’s international presence.

The debut of tea-based heated tobacco products and naturally flavored tobacco technology demonstrated CNTC’s drive toward innovation and catering to diverse consumer preferences. Its COO brand climbed to the fourth spot among international brands in the Czech market, with notable market shares in the Philippines and beyond.

IQOS at 10: The Growth of the Global Heated Tobacco Market

2024 marked the 10th anniversary of IQOS, a revolutionary heated tobacco product by PMI. Backed by its “smoke-free future” strategy, IQOS has maintained its leadership position in the global heated tobacco market. Covering over 70 countries and serving more than 30 million users, IQOS remains a driving force in the industry’s transition from combustible to innovative tobacco products.

In 2025, PMI is set to re-enter the U.S. market with IQOS, bolstered by a recent settlement with British American Tobacco. This move, alongside advancements by other major tobacco companies, could signal an explosive year for heated tobacco.

• BAT: Launched Glo Hilo in Serbia in December 2024, a lighter and more elegant device compared to competitors.
• JT: Plans to expand Ploom X to over 40 countries by 2026, aiming for heated tobacco sales to surpass traditional cigarettes by 2035.
• Altria: Began selling SWIC in the UK, featuring HeatGrid technology and tobacco-filled capsules.
• FirstUnion: Debuted Alkaid light heating technology, which reduces preheating time by 75%, at InterTabac 2024 via the 2Firsts platform.

The collective efforts of international tobacco companies, China Tobacco, Chinese supply chain leaders, and top e-cigarette brands are set to drive the global growth of heated tobacco products in 2025.

The Rapid Rise of Nicotine Pouches and Emerging Regulatory Risks

Nicotine pouches have become the fastest-growing category in the global NGP market in 2024. According to market forecasts, the global nicotine pouch market was valued at approximately $2.77 billion in 2023 and is expected to reach $23.6 billion by 2030, with a compound annual growth rate (CAGR) of 35.8% from 2023 to 2030. Together with e-cigarettes and heated tobacco products, nicotine pouches form the three major pillars of the global NGP sector.

Driven by robust market demand and the strong backing of international tobacco companies, nicotine pouches have witnessed rapid development across both the supply chain and the market.

Supply Chain:
In addition to traditional supply chains in Europe and India, China’s nicotine pouch supply chain has quickly emerged and undergone significant upgrades. China has established a comprehensive supply chain system that includes equipment, raw materials, OEM production, product development, and supporting services, making it one of the world’s primary centers for nicotine pouch production. Meanwhile, international tobacco companies like Philip Morris International have invested heavily in new factories to meet growing demand.

Market:
International brands like PMI’s ZYN and BAT’s VELO are investing heavily to expand their market presence. At the same time, e-cigarette brands have also launched nicotine pouch products under their own names or created new brands, intensifying market competition.

Scientific Research:
Both scientists from international tobacco companies and independent research institutions have conducted extensive studies on the safety of nicotine pouches.

However, as the industry rapidly expands, issues such as counterfeiting, illegal trade, and the potential appeal to minors have come to the forefront, drawing the attention of regulators worldwide. Stricter regulations on nicotine pouches are expected to emerge in 2025.

Multi-Adjustable Technology Gains Popularity: The Customization Era of E-Cigarette Consumption

In the second half of 2024, disposable e-cigarettes featuring multi-adjustable technologies became a key focus for many brands. These products allow consumers to adjust nicotine levels, flavors, sweetness, and cooling intensity, providing a more personalized experience. Numerous brands have followed this trend by introducing new products, marking this as the next major innovation trend after the large-screen e-cigarettes of 2023–2024.

The shift from aesthetic gimmicks to innovations that enhance the core consumption experience reflects a maturing industry. However, whether consumers will embrace these new features remains to be seen in the market tests of 2025.

• Key Product Launches in 2024:
  • Dawsons: Released the Pillow Talk Ice Control IC40000, claiming to be the first disposable e-cigarette with adjustable cooling intensity.
  • Lost Mary: Introduced the Adjust Series, offering multiple adjustable options, including cooling, flavors, sweetness, and nicotine levels.
  • OXBAR: Launched the ICE-NIC Control 35K in October, marketed as the first disposable e-cigarette with dual adjustment for nicotine concentration and cooling intensity.
  • HQD: Rolled out the HQD FLEX, combining features of "2+10" products and "4-in-1" e-cigarettes, allowing users to adjust sweetness or cooling intensity while switching flavors.

Reflections on 2024 and Prospects for 2025

Looking back on 2024, the global NGP industry underwent significant changes across regulations, commerce, and product technology. Never before has the industry experienced such a sharp contrast of opportunities and risks, posing a challenge to regulators, entrepreneurs, scientists, developers, and other stakeholders to demonstrate their faith, wisdom, and courage.

As we stand at the dawn of 2025, predicting the year ahead remains difficult. However, driving high-quality development through compliance and innovation should be the guiding path for the global NGP industry’s sustainable growth.