China's Innovation in Non-Tobacco HNB Market

Jun.23.2022
China's Innovation in Non-Tobacco HNB Market
Chinese e-cigarette companies introduce innovative no tobacco solid vapor products, challenging the dominance of traditional tobacco brands.

In 2014, the world's largest tobacco company, Philip Morris International, launched its innovative product, "IQOS" in Nagoya, Japan and Milan, Italy. The product uses a heat-not-burn (HNB) system to produce an aerosol without combustion, which Philip Morris claims reduces the risks and harms associated with tobacco combustion. IQOS quickly gained popularity in the European and American markets.

 

In 2016, two tobacco giants launched their own HNB brands: British American Tobacco's "GLO" and Japan Tobacco's "PLOOM". In 2017, China Tobacco introduced their first HNB cigarette, "Kuanzhai Bullet Head," in the South Korean market for the first time. Meanwhile, IQOS has provided significant data showing its popularity in major cities in Japan and South Korea. The product's market share in the new tobacco market is around 80% in Greece and over 50% in countries such as Russia, Serbia, and Portugal.

 

Although other leading tobacco companies invested heavily in researching similar products, FiMo has completely dominated this category in terms of market performance ever since. FiMo quickly filed for patents worldwide.

 

Chinese e-cigarette companies have now introduced a new method that partially overcomes the technological barrier in the heated not burned (HNB) market competition with "Herbal HNB." The core principle involves using HNB capsule technology without tobacco.

 

During the innovation and research process of HNB, some e-cigarette companies are considering stepping away from the technology path of Philip Morris International. Unlike PMI's tobacco-based products, Chinese companies are developing products that primarily consist of plant fibers containing nicotine.

 

Innovation, from product to regulation.

 

In October 2018, a new type of e-cigarette called "solid-state e-cigarettes" made its debut at the E-Cyke exhibition in Shenzhen. This privately owned innovation, outside of China's tobacco industry, caught people's attention by combining the trend of heat-not-burn (HNB) with avoiding tobacco control regulations. The media dubbed it as one of this year's "innovative electronic cigarette technologies" at the tradeshow.

 

In 2021, the State Council revised the "Regulations on the Implementation of the Tobacco Monopoly Law" and added a new provision: "New tobacco products such as electronic cigarettes shall be subject to the relevant provisions of this regulation on cigarettes." The review was issued for public comment on March 22 and officially implemented on November 10.

 

According to the specifications set by HNB and the definition of "tobacco products" in China's Tobacco Monopoly Law, HNB is not classified as a "tobacco product". Therefore, it is not considered a cigarette, nor does it comply with the same regulations as "heated tobacco". The new national standard for electronic cigarettes defines it as an e-cigarette, with the "particles" in its smoke cartridges defined as "solid vapor materials".

 

In recent years, China's domestic tobacco industry has made significant progress in the research and development of HNB tobacco products. The total number of patent applications has far exceeded those of foreign tobacco companies and other applicants. Yunnan Tobacco and Hubei Tobacco stand out with the highest number of patents.

 

What will happen now?

 

China's smokeless HNB products have already secured patents in international markets including Japan and Europe. The product's advantages of small size, lightweight, and simplified production processes have enabled it to penetrate the market actively and dominate amidst large-scale manufacturing and strong financial support from international tobacco conglomerates engaged in price wars for marketing activities. Consumers stand to benefit greatly from this competition.

 

Before publishing this article, a Chinese private enterprise engaged in the "solid electronic cigarette" industry is still waiting for the production license from the State Tobacco Monopoly Administration and a technical review of their products.

 

The China National Tobacco Corporation has released a draft of the "Electronic Cigarette Management Measures," which apply to their defined "solid-state vapor materials" and "liquid-state vapor materials." The measures were announced on March 11th, 2022 and will be enforced starting May 1st, 2022, with a transition period ending on October 1st, 2022.

 

Source: VAPINGTODAY.

 


Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

UK Proposes Stricter Vape Packaging Rules as Retailers Warn of £330 Million Impact
UK Proposes Stricter Vape Packaging Rules as Retailers Warn of £330 Million Impact
The UK government has launched a nationwide consultation on vape packaging, appearance and retail displays, proposing tighter rules to reduce youth appeal while industry groups warn of significant compliance costs.
Innovation
Jul.20
Haypp Report: Women Emerge as a Key Growth Driver in the UK Nicotine Pouch Market
Haypp Report: Women Emerge as a Key Growth Driver in the UK Nicotine Pouch Market
According to Haypp’s 2026 UK Nicotine Report, women are a key growth driver in the UK nicotine pouch market. Overall sales for Haypp and Northerner rose 60% year‑on‑year in 2025, but purchases by women surged 202%, versus 25% for men. Women’s share of consumers jumped from 22% to 40%. The report attributes this to discretion, perceived health benefits, and more gender‑neutral product positioning, suggesting future growth will come from a broader range of adult nicotine users.
Jul.01
Vuse Alto Adds New U.S. Price Tier as BAT Pushes Deeper Into Mass-Market Vaping
Vuse Alto Adds New U.S. Price Tier as BAT Pushes Deeper Into Mass-Market Vaping
British American Tobacco (BAT) subsidiary Vuse Alto has recently adjusted its price tiers in U.S. convenience store channels, leveraging low-cost device kits and pod promotions to reinforce its positioning in the mid-priced closed-system e-cigarette market.
Jun.17
BAT Regional Director Fred Monteiro Supports Spain’s Nicotine Rules but Opposes 0.99mg Nicotine Pouch Limit
BAT Regional Director Fred Monteiro Supports Spain’s Nicotine Rules but Opposes 0.99mg Nicotine Pouch Limit
Spanish newspaper El Confidencial interviewed Fred Monteiro, Regional Director for Americas and Europe at British American Tobacco (BAT). Monteiro said BAT supports setting regulatory limits for nicotine products but opposes Spain’s proposed 0.99mg nicotine-per-pouch limit, arguing that such a restriction could affect adult smokers’ transition to alternatives. He said nicotine regulation should be based on scientific evidence and harm reduction principles. Monteiro also said smoke-free products now account for around 25% of BAT’s Americas and Europe business and nearly 30% of its Europe business
BAT
Jul.30
Indonesia’s BNN Pushes Total Vape Ban as Health Ministry Tightens Tobacco Packaging Rules, Putting $40 Billion Industry at Risk
Indonesia’s BNN Pushes Total Vape Ban as Health Ministry Tightens Tobacco Packaging Rules, Putting $40 Billion Industry at Risk
Indonesia is entering a new phase of debate over vape and tobacco regulation. The National Narcotics Agency (BNN) has proposed a total vape ban, with some lawmakers supporting stronger restrictions. At the same time, the Health Ministry is advancing tobacco and nicotine regulations under Government Regulation No. 28/2024, including measures such as plain packaging and product controls. Tobacco and vape industries have warned that tighter rules could affect a sector worth around $40 billion, supporting about 6 million jobs and contributing significant tax revenue.
Jul.27
U.S. Convenience Stores Rebalance Backbar as Nicotine Pouches Outpace Cigarettes
U.S. Convenience Stores Rebalance Backbar as Nicotine Pouches Outpace Cigarettes
As cigarette volumes continue to decline, U.S. convenience-store operators are reconfiguring backbar space to accommodate modern oral nicotine products such as nicotine pouches. Industry data show nicotine pouches have become one of the fastest-growing nicotine categories while generating higher margins for retailers.
Jun.12