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.

Multi-State Coalition Urges F1 to End Nicotine Sponsorships, Citing Zyn and Velo
Multi-State Coalition Urges F1 to End Nicotine Sponsorships, Citing Zyn and Velo
Hawaii Attorney General Anne Lopez is co-leading a coalition of 19 states and jurisdictions urging the Fédération Internationale de l’Automobile (FIA) and Formula 1 to end sponsorships involving tobacco and nicotine products, including nicotine pouch brands such as Zyn and Velo.
News
Jun.09
PMI Expands IQOS and VEEV Presence at Frankfurt Airport Through Travel Retail Pop-Ups
PMI Expands IQOS and VEEV Presence at Frankfurt Airport Through Travel Retail Pop-Ups
According to The Moodie Davitt Report, PMI Global Travel Retail and Frankfurt Airport Retail have launched new IQOS and VEEV retail spaces at Frankfurt Airport. The installations, located inside and outside duty-free areas, showcase IQOS heated tobacco products and VEEV e-vapor products through product education, consumer interaction and brand experiences. Frankfurt Airport Retail, operated by Fraport Group and Gebr. Heinemann, manages key retail activities at Frankfurt Airport. The initiative follows PMI’s broader strategy of expanding smoke-free products through global travel retail channels. PMI has previously introduced VEEV products across multiple European airports while continuing to expand IQOS and VEEV availability in international markets.
Jul.17
Former FDA Scientist Questions ZYN Review Over Pouch Material and Microplastic Risk
Former FDA Scientist Questions ZYN Review Over Pouch Material and Microplastic Risk
A former FDA toxicologist has questioned whether the agency fully assessed the material used in ZYN nicotine pouches before authorizing them for sale, raising concerns over possible microplastic exposure, according to STAT and The Examination.
Jul.16
IQOS Global Flagship Space to Open in Tokyo Ginza as PMI Expands Consumer Experience Strategy
IQOS Global Flagship Space to Open in Tokyo Ginza as PMI Expands Consumer Experience Strategy
Philip Morris Japan (PMJ) announced that it will open “IQOS Flagship Ginza” in Tokyo on September 4, 2026. The location will become the first global flagship space for PMI’s IQOS brand. PMJ said the venue will target adult smokers aged 20 and above and combine product experiences, community engagement and local cultural elements. The design will incorporate Japanese natural aesthetics and traditional craftsmanship. The launch reflects PMI’s broader strategy of strengthening consumer engagement through experiential retail and brand spaces. The existing IQOS Store Ginza is scheduled to close on August 30, 2026.
Jul.21
Product | OLIVEBAR Launches RAZ PRO 85K, Combining Up to 85,000 Puffs With a Transparent Pod Design
Product | OLIVEBAR Launches RAZ PRO 85K, Combining Up to 85,000 Puffs With a Transparent Pod Design
OLIVEBAR has introduced the RAZ PRO 85K disposable vape, featuring up to 85,000 puffs, a transparent e-liquid pod, and a Mega HD display. As competition in the ultra-high-puff disposable segment continues to intensify, the new device reflects an industry shift from simply increasing puff counts toward enhancing visual interaction and user experience.
Jul.03
PMI Oral Products Chief Says Lack of Rules May Push Nicotine Pouch Market Into Illicit Trade
PMI Oral Products Chief Says Lack of Rules May Push Nicotine Pouch Market Into Illicit Trade
Nick Ricketts, President of Oral Products at Philip Morris International (PMI), told Logos Press that nicotine pouches should be brought under clear regulatory frameworks covering nicotine limits, flavor rules, age verification, sales controls and marketing standards, arguing that the absence of clear rules or blanket bans may push consumer demand into illegal or semi-legal channels.
Jul.06