On January 5th, 2023, 2FIRSTS conducted an interview with Ciprian Boboi, a board member and director of finance and membership for the European E-cigarette Association (IEVA), regarding the organization's plans for growth in 2023 and the future direction of the industry.
As European regulations on the e-cigarette industry become stricter, what role will IEVA play in 2023? Additionally, what are the work plans for IEVA in 2023?
Ciprian Boboi stated that IEVA is the only association capable of influencing EU regulations on electronic cigarettes at the EU level. He also mentioned that IEVA will use its influence in the European electronic cigarette industry and at the EU level to promote the improvement of electronic cigarette legislation across Europe. This legislation will mainly focus on:
The European Union had intended to discuss a taxation policy on tobacco and electronic cigarettes, including efforts to minimize the impact of the tobacco tax on the e-cigarette industry, by December of 2022. However, this plan has been delayed due to a few reasons.
Secondly, it is essential to ensure that disposable electronic cigarettes and a diverse range of flavors can be sold in the European market without any hindrances.
How does IEVA predict the future development direction of the electronic cigarette market? Will disposables continue to dominate?
Ciprian Boboi believes that the introduction of disposable e-cigarettes has fundamentally changed public perception of vaping. Prior to their arrival, few people used e-cigarettes, with many believing they were even more harmful than traditional tobacco products. However, the appearance of disposables quickly made them popular throughout Europe, leading to a recognition that e-cigarettes are a safer alternative. Boboi suggests that disposable e-cigarettes have likely already peaked in terms of popularity, with their market share set to decline. Firstly, some people use disposables to look cool or follow trends, rather than needing nicotine, and will move onto other products like hookah pipes. Secondly, those trying to quit smoking will soon realize that disposables are expensive compared to reusable alternatives like pods or open systems, leading them to switch. Lastly, the popularity of disposables has created numerous environmental problems, with packaging like milk tea cups becoming an attractive purchase for underage users. Therefore, Boboi believes reusable products like pods or open systems will likely become more common in the future.
2FIRSTS: We noticed that IEVA's membership fee is 5000 euros per month, totaling 60,000 euros per year. While this may not be a high cost for tobacco industry giants, it may be a significant expense for many medium and small-sized Chinese businesses. Will IEVA consider adopting a differentiated fee structure in the future?
Ciprian Boboi stated that they have considered this aspect and are willing to negotiate with 2FIRSTS and Chinese e-cigarette companies to develop a customized fee plan that is acceptable for all parties involved. They aim to find a differentiated solution.
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