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.

China’s Jinhua Tobacco Launches CNY 2.7 Million Procurement for E-Cigarette Violation Lead Monitoring Services
China’s Jinhua Tobacco Launches CNY 2.7 Million Procurement for E-Cigarette Violation Lead Monitoring Services
Jinhua Tobacco, a municipal tobacco company in China’s Zhejiang province, has launched a public tender for e-cigarette-related violation lead monitoring and consulting services. The project is valued at CNY 2.7 million and covers data resource integration and analytical consulting services for 36 months from contract signing. The procurement reflects the use of external data and analysis services to support local tobacco companies’ market oversight activities related to e-cigarettes.
Aug.07
From Border-Logistics Insiders to Retail Service Stations, Australia Mounts a Sweeping Crackdown on the Illicit Nicotine Trade as iGET Vapes Surface in A$80 Million Crime Networks
From Border-Logistics Insiders to Retail Service Stations, Australia Mounts a Sweeping Crackdown on the Illicit Nicotine Trade as iGET Vapes Surface in A$80 Million Crime Networks
Australian authorities have disclosed two major enforcement actions that go beyond product seizures and retail closures to examine how illicit tobacco and vape networks operate. On Aug. 14, the Multi Agency Strike Team said seven people had been charged and two criminal networks were valued by authorities at a combined A$80 million, or about US$56.8 million. Investigators allege the groups used bonded warehouses, freight businesses and “trusted insiders” in legitimate industries to circumvent border controls. In a separate operation on Aug. 11, more than 100 service stations were targeted as authorities sought information on illicit tobacco importation, distribution networks and the movement of sales proceeds.
Aug.17
Japan’s Heated Tobacco Tax Reform Drives Price Increase as JT Raises All Ploom Sticks by ¥40
Japan’s Heated Tobacco Tax Reform Drives Price Increase as JT Raises All Ploom Sticks by ¥40
Japan Tobacco Inc. (JT) has applied to Japan’s finance minister for approval to revise retail prices of its Ploom heated tobacco sticks following planned changes to the heated tobacco tax system from October 1, 2026. If approved, all 31 Ploom stick products will increase by ¥40. After the adjustment, EVO products will cost ¥620 per 20-stick pack, MEVIUS products ¥590 and CAMEL products ¥570. JT said the price revision is intended to respond to tax changes while maintaining product quality and brand value. The tax reform is expected to narrow the tax gap between combustible cigarettes and heated tobacco products, potentially reshaping pricing strategies in Japan’s heated tobacco market.
Jul.22
Germany Expands Take-Back Rules for Disposable Vapes From July 1
Germany Expands Take-Back Rules for Disposable Vapes From July 1
Germany has expanded take-back obligations for disposable vapes from July 1, 2026, requiring consumers to be able to return used devices at stores that sell such products, including kiosks, petrol stations and vape shops, as e-cigarette regulation extends from sales to waste management and lithium-battery safety.
Market
Jul.06 by 2Firsts Perspectives
Product | Vapsolo Launches Sixer 180K, Introducing a 6-in-1 Architecture for Disposable Vapes
Product | Vapsolo Launches Sixer 180K, Introducing a 6-in-1 Architecture for Disposable Vapes
Vapsolo has launched the Sixer 180K, a flagship disposable vape built around a 6-in-1 architecture featuring six independent e-liquid tanks and six dedicated mesh coils. Alongside a claimed up to 180,000 puffs, the new device reflects a broader shift in disposable vape development from increasing puff counts toward modular hardware design and multi-flavor user experience.
Jul.03
Product | PMI Japan Expands ZYN by IQOS Strength Portfolio With Strong Series, Increasing Lineup to 12 Products
Product | PMI Japan Expands ZYN by IQOS Strength Portfolio With Strong Series, Increasing Lineup to 12 Products
Philip Morris Japan (PMJ) has expanded the ZYN by IQOS oral tobacco pouch portfolio in Japan with four new ZYN Strong products, adding a third intensity level alongside the existing Low and Medium ranges. The Strong series first entered selected duty-free channels in Japan on July 1, 2026, before expanding to IQOS stores, the ZYN Online Store and selected tobacco retailers from August 18. The expansion increases the Japanese ZYN by IQOS lineup from eight to 12 products.
Aug.20