Global E-cigarette Industry Weekly (Dec.12-18)

1. On December 15, the State Tobacco Monopoly Administration updated the list of certified e-cigarette inspection and testing organizations, with a total of 27.

2. On December 16, in order to regulate and strengthen the administration of the price of case-involved e-cigarettes, the State Tobacco Monopoly Administration issued the Detailed Rules on Price Management of E-cigarettes Involved in Cases.

3. To reduce smoking rates, the Hong Kong Council on Smoking and Health has proposed raising the current tax on a pack of cigarettes from HKD 38 (about USD 5) to HKD 76 (about USD 10).

4. On December 15, the Independent British Vape Trade Association (IBVTA) held an online seminar. Jason, international PR manager of 2FIRSTS, was invited to talk about the Chinese e-cigarette market and policies.

# Global #

• The global cannabis market could reach USD 18.6 billion by 2027, according to research firm Krungsri Research Intelligence.

#Europe#

• At 18:00 on December 11, the Russian e-cigarette exhibition Vape Club Show was officially closed. A total of 65 exhibitors and over 5,000 professional visitors were present at this year's show. During the show, 2FIRSTS, a professional media agency in the global e-cigarette industry, signed a cooperation agreement with the organizer of the show as an official partner. Together, the two parties will pursue more sincere cooperation in the future.
• Tobacco products are the best-selling goods on the black market in Bosnia and Herzegovina, with an estimated 49% of the country's citizens buying cigarettes and e-cigarettes in the black market.
• In 2023, Russian e-cigarette prices could rise by 30% and juice prices by more than 70% due to increased demand and higher excise taxes.

# North America #

• According to US market research firm IRI, sales of e-cigarettes in the US convenience channels increased by 13.2% to USD 6.87 billion as of October, while unit sales were essentially flat. The company said the spike in sales was likely due to a nearly USD 2 increase in the unit price of e-cigarettes.
• Adult cannabis sales in California hit a record low of USD 853 million in the first three quarters, down 17.2% year-over-year.
• This year, many alternative tobacco products have flooded the US retail market, such as low or no nicotine cigarettes.

# North America #

• US smokers have been turning to lower-priced cigarettes due to inflation. In Q3 2022, cheaper tobacco brands increased their share of the US cigarette market to 27.1%, up 1.8% from a year earlier.
• In the US, Connecticut stipulates that all nicotine products must be sold behind store counters, and stores must also post notices regarding the legality of selling nicotine and THC products.
• The city of Columbus will vote this week on the issue of whether to ban the sale of flavored tobacco within the city boundaries, which is receiving a lot of attention from stakeholders.
• The Canadian province of Quebec plans to impose a new tax on the e-cigarette industry later next year, supported by the anti-tobacco group, the Quebec Coalition for Tobacco Control (QCTC).
• The US Supreme Court denied a request by tobacco companies to block California's ban on flavored tobacco products, which received overwhelming voter support in November.
• Columbus, the capital of the US state of Ohio, will ban the sale of all flavored e-cigarette products, including mint flavors, in 2024.
• In Westchester, the legislature decided to lift the ban because of strong opposition from minority groups, to the ordinance banning flavored tobacco products there.
• Baton Rouge, the capital of Louisiana, has banned the use of e-cigarettes and hookahs in bars.
• Health Canada completed amendments to the Cannabis Act, which increased possession restrictions on cannabis beverages and relaxed research and testing requirements for cannabis.
• A report by the US HHS Office of Inspector General (HHS-OIG) says the FDA failed to follow through with follow-up tasks after issuing warning letters to sellers of online tobacco products and e-cigarette products.
• The Vaping Industry Trade Association (VITA) is opposed to a nationwide federal tax on e-cigarette products because it believes that higher e-cigarette prices will lead to an increase in the number of smokers.

#Europe#

• Russia's North Ossetian border guards seized two cases of cigarette smuggling at the border with an estimated value of more than 74 million rubles (about USD 1.1 million) and are currently conducting the next stage of the investigation.
• The mayor of Bristol, Marvin Rees, has vetoed a decision to name South Bristol Road after a tobacco brand, following opposition from the Action on Smoking and Health (ASH).
• Russia's "Honest Shops" program to combat the illegal distribution of tobacco products will soon be applied to the online retail sector.
• Belgium will enact a ban on disposable e-cigarettes. It is learned that the ban will soon be officially announced in the official gazette, and retailers will be given a six-month transition period, after which the ban will officially take effect.

#Oceania#

• New Zealand banned the sale of tobacco to anyone born on and after January 1, 2009, with a fine of up to NZD 150,000 (about USD 96,000) for violators.
• To protect minors, Australian Federal Health Minister Mark Butler is in discussions with the states to implement new regulatory measures to limit the number of people using e-cigarettes.
• The New Zealand Parliament passed the Smokefree Environments and Regulated Products (Smoked Tobacco) Amendment Bill, the implementation of which is expected to phase out the use of combustible tobacco products in the country.

#Asia#

• Indonesia has decided to raise the excise tax on e-cigarettes by 15% in 2023 but has not yet formulated specific regulatory rules. For this reason, the East Java Chamber of Commerce and Industry has requested the government to immediately issue a tobacco excise tax for 2023 to regulate the market.
• The Indian parliamentary committee proposed a ban on the sale of single cigarettes and the closure of smoking areas at airports and also recommended increasing the service tax on tobacco products and using the tax money to treat cancer patients.
• Bangkok, Thailand plans to amend the Bangkok Metropolitan Administration Act to collect more tax revenue by imposing a tobacco tax and a hotel accommodation tax to achieve its goal of collecting THB 80 billion (approximately USD 2.3 billion) in the current fiscal year.
• The Federation of Cigarette, Tobacco, Food, and Beverage Workers-All-Indonesian Workers Union Indonesia (FSP RTMM-SPSI) in Jakarta has refused to support foreign groups interfering with tobacco policy in the country.
• The Japanese government plans to generate JPY 1.1-1.2 trillion (approximately USD 8.1-8.8 billion) in revenue by imposing corporate and tobacco taxes in order to increase the defense budget.
• To control the number of smokers, the average increase in excise tax on traditional cigarettes in Indonesia is expected to be 10% over the coming two years; the average increase in excise tax on e-cigarettes is expected to be 15% over the next five years.
• Bertu, a member of the Indonesian committee, proposed to categorize the excise tax on e-cigarettes to accommodate the production of small industries.

Philip Morris International (PMI)

• Philip Morris International (PMI) has taken advantage of a loophole in Israel's ban on advertising tobacco products to place ads, according to the Jerusalem Post.
• The Russian Ministry of Justice suspected that the Electronic Cigarette Fighters Association had illegally received funds from British American Tobacco (BAT) and Philip Morris International (PMI) to tarnish e-cigarette products.

British American Tobacco (BAT)

• British American Tobacco said that the company's full-year revenue will grow by 2%-4% as more people use e-cigarettes and oral nicotine products.
• According to the latest data published by Nielsen Convenience Store, the US market share of British American Tobacco's e-cigarette brand Vuse increased to 40.7% in November, ahead of Juul's 27%.

Avail Vapor

• Recently, the United States Court of Appeals for the Fourth Circuit ruled in favor of the FDA and denied Avail Vapor LLC's petition for a review of its application to sell flavored e-cigarettes.

Totally Wicked

• Totally Wicked, the UK's largest e-cigarette company and online retailer, has released its latest fiscal year results. The report shows that the company's performance this year set a new record high.

Chill Brands Group

• Callum Sommerton, CEO of UK-based Chill Brands Group PLC, announced that the company has begun the production of a nicotine-free disposable e-cigarette product that will be available in the first quarter of 2023 and will re-enter the US market.