Global E-cigarette Industry Weekly (Nov. 21-27)

BusinessNews

Nov.28.2022

Global E-cigarette Industry Weekly (Nov.21-27)

1. The China State Tobacco Monopoly Administration issued the Notice on Limited Delivery of E-Cigarette Products, Vaporizers, and Nicotine for E-Cigarettes. The Notice limits the delivery of e-cigarette products to 2 smoking sets per delivery.

2. The China State Tobacco Monopoly Administration issued the Notice on the Limited Carriage of E-Cigarette Products, Vaporizers, and Nicotine for E-Cigarettes to Other Places. The Notice stipulates that no more than 6 e-cigarette smoking sets and no more than 90 e-cigarette holders (liquid atomizers) (180 ml) shall be carried by each person to other places.

3. The Hong Kong police seized about 64 million illegally imported cigarettes, involving sums amounting to HKD 180 million. It's said that these cigarettes were illegally imported by smuggling groups, repackaged, and sold overseas.

4. The Hong Kong Special Administrative Region (HKSAR) wants to raise the price of a packet of cigarettes from HKD 59 to HKD 100 to achieve the goal of reducing the smoking rate from 10.2% to 7.8% by 2025. Henry Tong, Chairman of the Hong Kong Council on Smoking and Health (COSH), said raising the tobacco tax was the most effective way to achieve this goal, as the tax rate had not been significantly adjusted for a decade.

# Global #

 The research report by Transparent Market Research (TMR) provides a comprehensive analysis of the key aspects affecting the growth trajectory of the pod vape industry. The report predicts that the compound growth rate of the pod vape market is expected to peak in 2031.

 According to a report recently released by consulting firm P&S Intelligence, the e-cigarette market is expected to grow at a compound annual rate of 9.2% in 2020-2030. By 2030, the market revenue will increase from USD 15.7 billion in 2019 to USD 39 billion.

 Facts and Factors, a research institution, recently released its 2022-2028 E-cigarette Industry Forecast and Market Report, revealing main details such as CAGR and SWOT analysis. A number of Chinese companies were rated as "major players among the many e-cigarette operators worldwide".

# Australia #

 According to the New Zealand Ministry of Health on November 17, the country's smoking rate has fallen to 8%, the lowest level on record, lower than 9.4% last year. The country is striving to reach its smoke-free goal by 2025, but the number of e-cigarette users continues to climb.

# Russia #

 According to Rosstat, the output of legal cigarettes has fallen by 17% this year, while the share of counterfeit cigarettes is growing. A member of the State Duma of Russia said they would introduce policies to govern the market.

# Global #

 2FIRSTS had video talks with UK e-cigarette regulators. They said that 25% of Chinese products currently entering the UK market were non-compliant, especially popular products. MHRA expects to align UK inspection standards with Chinese regulatory authorities to achieve efficient cooperation.

# North America #

 The Vapor Technology Association (VTA) has filed an objection to the flavor ban with the U.S. Supreme Court. The trade group, citing the significant impact of tobacco product sales on the US economy, said the Supreme Court's review of the flavor ban was crucial.

 Columbus is currently discussing the issue of banning the retail sale of flavored tobacco and e-cigarette products, and has held a series of public meetings and virtual hearings to allow all parties to demonstrate the impact of such bans.

 The U.S. Food and Drug Administration (FDA) today issued warning letters to five companies that illegally sell products containing cannabidiol (CBD). These companies were accused of selling products containing CBD, and the FDA said that some people might confuse these products with traditional foods or drinks that do not contain CBD. This could lead to unintentional or excessive consumption of CBD.

# Asia #

 The Bureau of Internal Revenue (BIR) of the Philippines has issued its guidelines for the implementation of the Vape Law that also set the floor price for heated, vapor, and other e-cigarette products.

 The Philippine House Committee on Agriculture and Food has approved the legislation to attempt to include unprocessed and processed tobacco in the definition of "agricultural products" in the Anti-Agricultural Smuggling Act. The legislation aims to declare economic sabotage such as smuggling raw tobacco, cigarettes, cigars, and heated tobacco products.

# Australia #

 Since November 22, some town centers in Perth, Australia will become smoke-free areas, and smoking and e-cigarettes will be banned in several main streets of the city. There is a six-month preparation period for the implementation of the ban, after which violation of the ban will be fined.

#Europe#

 According to Bulgarian National Radio, due to the increase in the excise tax on tobacco products, the price of tobacco products will gradually increase from March to November 17 next year. The price increase comes from a 15% increase in the excise tax.

 National addiction policy makers and experts met in Brussels on November 15 to discuss the Czech presidency of the Council of the EU and the best way to tackle various addictions, including alcohol, tobacco, gambling and digital technologies, at the EU level. The consensus is that the priority should be a holistic, compassionate and realistic approach to help those in need.

 The World Vapers' Alliance has presented Portugal with a 7-step plan to combat cigarette consumption, which will contribute to Portugal's smoke-free goals. The plan will work in conjunction with the forthcoming update of the EU Tobacco Products Directive (TPD) and the implementation of the Portuguese Plan to reduce cancer (ENLCC). 、

 On November 22 local time, the Irish government approved a new plan to combat the sale of e-cigarettes, and persons under 18 years of age will no longer be allowed to buy e-cigarettes. The sale of e-cigarettes will be prohibited from self-service vending machines and at places or events for children.

# Russia #

 The Ministry of Finance of the Russian Federation has presented a package of bills to the Federal Government, which stipulate enhanced legal responsibility for the illicit production and trafficking of tobacco products and criminal accountability for mass production. The bills are expected to take effect on September 1, 2023 after their adoption.

 Russia's Finance Ministry is developing technology for digital excise tax on tobacco and beer. The tax service will automatically calculate tax liabilities when products are released into circulation, as based on data that is in the information systems for labeling tobacco and beer.

 According to TASS news agency, the Federal Customs Service of Russia disclosed that customs officials in Smolensk had seized 230 packs of cigarettes without excise tax stamps smuggled from Belarus to Russia, with the total value estimated at RUB 260 million (about RMB 30 million).

 According to the Ministry of Internal Affairs of the Russian Federation, the Federal Security Service seized RUB 13 million (about RMB 1.53 million) worth of goods, including 120,000 packs of smuggled cigarettes, when cracking down on the supply of counterfeit e-cigarettes in an investigation in the Chuvash Republic.

#Middle East#

 Due to the ban on vaping in Qatar, a large number of e-cigarettes carried by soccer fans traveling to the World Cup will be confiscated. In addition, fans will not be allowed to drink beer at the country's eight World Cup stadiums.

Philip Morris International (PMI)

 Philip Morris International (PMI) is committed to achieving its carbon neutrality goals with a transformative new solar project for Sampoerna, Indonesia, which includes planting trees and building solar panels.

 The PMI affiliates in Russia have turned from Europe to Asia for sourcing materials for nicotine-containing products, according to the PMI vice president of corporate affairs in Russia.

 Framtiden Management Co., a Swedish Match shareholder, tendered its shares to PMI despite reservations about the takeover.

British American Tobacco (BAT)

 To become a more sustainable business, British American Tobacco (BAT) has announced the plans and actions it will take to reach its climate targets. This includes halving absolute emissions across its value chain by 2030, from a 2020 baseline, and to be net zero across its value chain by 2050 at the latest.

JUUL

 After obtaining the new funding, Juul will reduce its operating budget by 30% to 40% and lay off its people. The new funding will allow Juul to continue advancing its administrative appeal of the FDA's marketing denial order and support product innovation, according to an informed source.

Indiva

 Canadian cannabis producer Indiva reported revenue of USD 8.8 million in the third quarter of 2022, down 1.1% month-on-month and up 5.9% year-on-year. Since the beginning of the year, the total revenue has increased by 9.3% year-on-year to a record high of USD 27.4 million. The company is a leading producer of cannabis edibles in Canada.