2Firsts Data｜China Vape Exports Sink to Three-Year April Low After Tax Rebate Ends, Falling to $694 Million

Key Points

• China’s e-cigarette exports reached $694 million in April 2026, down 20.9% year-on-year.
• April 2026 was the lowest April level in the past three years.
• Exports fell 23.2% from March and were also below the average monthly level in the first quarter.
• January–April exports remained 1.5% above 2025, but April’s decline sharply narrowed the cumulative gain.

2Firsts

May23, 2026 Shenzhen

China’s e-cigarette export value fell to $694 million in April 2026, down 20.9% year-on-year and 23.2% from March. It was the first full month after China removed export VAT rebates for certain e-cigarette products. The April figure was not only lower than the same month in both 2024 and 2025, but also below the average monthly level recorded in the first quarter of 2026. Although cumulative exports for January to April remained slightly above the same period in 2025, April’s decline sharply narrowed the year-to-date growth margin.

April Exports Fell to $694 Million, the Lowest April Level in Three Years

China’s e-cigarette export value reached $694 million in April 2026, down 20.9% from $877 million in April 2025 and 22.3% from $893 million in April 2024.

A comparison of April figures over the past three years shows a clear decline. Both April 2024 and April 2025 were close to the $900 million level, while April 2026 fell below $700 million, making it the lowest April figure in the three-year period.

The timing makes the April figure particularly important. April 2026 was the first full month after China removed export VAT rebates for certain e-cigarette products. Previously, some e-cigarette exports benefited from a 13% VAT rebate. Starting April 1, 2026, the rebate was removed for certain product categories.

As a result, the April data is not merely a regular monthly trade figure. It also provides the first monthly snapshot of China’s e-cigarette exports after the rebate policy change took effect.

Down 20.9% Year-on-Year and 23.2% Month-on-Month

On a year-on-year basis, China’s e-cigarette export value in April 2026 fell 20.9% from April 2025. Compared with April 2024, the decline was 22.3%. This means April 2026 was not only below the same month last year, but also below the level recorded two years earlier.

On a month-on-month basis, China’s e-cigarette exports fell from $903 million in March 2026 to $694 million in April, a decline of 23.2%.

The figures show that April’s decline was not limited to a single comparison. It was lower both against historical April levels and against the immediately preceding month.

Because April 2026 was also the first full month after China removed export VAT rebates for certain e-cigarette products, the figure carries particular significance. However, it should still be interpreted with caution. Since the policy change took effect on April 1, some orders may have been shipped and declared before the effective date, potentially widening the gap between March and April. As a result, the April decline may reflect a combination of year-on-year comparison, policy transition, order timing and customs declaration schedules.

January–April Exports Remained Slightly Higher Than 2025, but April Narrowed the Gain

On a cumulative basis, China’s e-cigarette export value reached about $3.29 billion in the first four months of 2026. That was slightly higher than the $3.24 billion recorded in the same period of 2025, representing growth of 1.5%. Compared with the $3.37 billion recorded in the same period of 2024, however, exports were down 2.5%.

For January to March alone, China’s e-cigarette exports totaled about $2.60 billion, up around 9.8% from $2.36 billion in the same period of 2025. After April was included, the cumulative year-on-year increase narrowed to 1.5%.

This shows that April’s decline placed clear pressure on the year-to-date performance. Although exports for the first four months of 2026 remained slightly above the same period in 2025, the margin was significantly reduced.

The 2025 monthly trend also showed considerable volatility. China’s e-cigarette exports stood at $812 million in May 2025 and $673 million in June, before rising to $1.10 billion in both October and November. This means that further monthly data, especially for May and June 2026, will be needed to assess whether April was a one-month adjustment or the beginning of a more sustained shift.

Overall, the key signal from April 2026 is clear: in the first full month after the export VAT rebate removal, China’s e-cigarette export value fell below the same period in the previous two years and significantly narrowed the cumulative growth recorded in the first four months. The next two months will be important in determining whether April’s low level was a temporary policy-transition effect or the start of a more continuous change.

(Cover Image: generated by AI)

2FIRSTS | After Export Tax Rebates Go to Zero: How China’s E-Cigarette Supply Chain Is Being Reshaped, According to 2Firsts Research

China’s e-cigarette industry is adjusting to a major policy shift. From April 1, 2026, China will scrap the 13% export VAT rebate on e-cigarette products, a move affecting manufacturers centered in Shenzhen. Industry participants told 2Firsts the change is forcing a reassessment of pricing and capacity, with competition shifting toward cash flow resilience, regulatory compliance, and multi-location strategies.

www.2firsts.com

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