Interview with IJOY: The Spanish Vaping Market on a Decline, New Brands Struggle to Survive under TPD Regulations

Jun.04.2023
Interview with IJOY: The Spanish Vaping Market on a Decline, New Brands Struggle to Survive under TPD Regulations
Chinese e-cigarette companies entering Spanish market due to oversupply. However, regulations and market saturation limit growth.

Special announcement:

This article is for internal industry research and communication only and does not endorse any specific brand or product. Minors are prohibited from accessing it.

 

At 10:00 am on June 3rd, according to Madrid time (4:00 pm Beijing time), the Vapexpo, an electronic cigarette exhibition, was officially inaugurated at the Pabellón de Cristal exhibition center in Madrid, Spain.

 

Spain, located in southwestern Europe, lags behind countries such as the UK, France, and Germany in terms of electronic cigarette sales. According to data from statistics website Statista, the country's total revenue from electronic cigarettes is expected to reach $194.6 million by 2023. However, 2FIRSTS learned from a recent electronic cigarette trade show that an increasing number of Chinese electronic cigarette manufacturers have entered the Spanish market.

 

The electronic cigarette market in Spain has more supply than demand.

 

The head of IJOY's Netherlands branch, Zhu Zhihui, has stated that Spain will experience a boom in the electronic cigarette industry starting from July 2022. Zhu believes that new brands will enter the market and attempt to gain a competitive edge by lowering prices, in an effort to attract new users.

 

He said, "Nowadays, the competition in the Spanish market is not about a specific product or flavor.

 

Secondly, and most importantly, IJOY has chosen to establish its European subsidiary headquarters in the Netherlands due to the country's leading position in European logistics. Furthermore, there is currently an excess of e-cigarette inventory in the market compared to the demand.

 

Zhu Zhihui stated:

 

Absolute supply exceeds demand.

 

In order to expand their markets, many electronic cigarette brands have resorted to risky tactics in Spain, evading regulations and even selling electronic cigarettes with a capacity of up to 8000 puffs to retailers.

 

According to regulations in Spain, the sale of e-cigarette products in the market is only allowed if their capacity is below 2ml (equivalent to approximately 600 puffs).

 

These actions have led to increased government regulation, with Spain introducing a series of policies to strengthen e-cigarette regulation starting from the end of 2022.

 

In reality, electronic cigarette vendors in Spain are not deliberately breaking the law by selling their products. The 600-puff limit allowed by the European Tobacco Products Directive (TPD) has discouraged consumers from purchasing compliant products and instead turned to buying illegal ones. With an oversaturated market, sellers have resorted to competing based on high quantities.

 

Indeed, this is a reflection of market demand. Consumers have little interest in the 600 product.

 

The market is declining.

 

According to Zhu Zhihui, the electronic cigarette market in Spain is declining. Under restrictive regulations, all manufacturers are competing within a limited range of 600 units, with price being the sole determinant of market value.

 

He gave an example that, if a product were to be sold at a price of 1 yuan to the market, as long as someone helped him clear the stock, it would be fine. However, the cost of customs clearance and logistics would already be between 0.3-0.4 euros.

 

I too can create a brand, and I can even abandon my brand for someone else to take up.

 

Manufacturers are struggling to maintain profit margins in the face of high costs and fierce price competition. When introducing new products, they are immediately met with competition from similar companies. As a variety of products flood the market, lesser-known small and medium-sized brands lack the recognition to establish dominance, ultimately leading to a lack of visibility for new products in the market.

 

Zhu Zhihui said to 2FIRSTS:

 

Currently, it is actually quite difficult to launch new products.

 

He and his team participated in the Madrid Electronic Cigarette Exhibition in Spain with the aim of expanding their customer base and increasing brand recognition.

 

2FIRSTS will continue to report on the latest developments from the exhibition. Stay tuned for updates.

 

Background:

 

On May 15th, 2FIRSTS and VAPEXPO SPAIN announced a partnership as media collaborators aimed at promoting the development and exchange of the global electronic cigarette industry.

 

Vapexpo Spain is the largest and most important exhibition for the vaping industry in Spain, bringing together manufacturers, suppliers, retailers, and industry experts from around the world. As a global technology media and think tank, 2FIRSTS shines a spotlight on hot topics and trends in the global vaping market, dedicated to promoting information and communication in the global e-cigarette industry and leveraging media influence to support the development of the vaping industry worldwide.

 

*This article is an original article of 2FIRSTS Technology Co., Ltd. The copyright and license rights belong to the company. Any entity or individual shall make link and credit 2FIRSTS when taking actions to copy, reprint or distribute the original article. The company retains the right to pursue its legal responsibility.

Product | KT&G Expands lil AIBLE 3.0 Sales to Seoul Convenience Stores, Launches Two New AIIM Variants
Product | KT&G Expands lil AIBLE 3.0 Sales to Seoul Convenience Stores, Launches Two New AIIM Variants
According to South Korean media reports, KT&G has expanded sales of its heated tobacco device lil AIBLE 3.0 to convenience stores across Seoul starting May 13. The convenience-store version is offered in the exclusive OUD GRAY color. On the same day, KT&G also launched two new dedicated consumables for the lil AIBLE platform—AIIM REMIX and AIIM ICESPOT—at convenience stores nationwide, each priced at KRW 4,800.
Market
Jun.01
South Korea’s Cigarette Smoking Rate Falls to 17.9%, E-Cigarette Use Continues to Rise
South Korea’s Cigarette Smoking Rate Falls to 17.9%, E-Cigarette Use Continues to Rise
Data released by the Korea Disease Control and Prevention Agency (KDCA) showed South Korea’s conventional cigarette smoking rate fell to 17.9% in 2025, while heated tobacco and liquid e-cigarette use continued to rise, particularly among young adults and women.
Jun.01
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
AHA Journal Study: WS-23 Triples Premature Heartbeats, Raising Concerns Over Vape Cooling Agents
AHA Journal Study: WS-23 Triples Premature Heartbeats, Raising Concerns Over Vape Cooling Agents
A University of Louisville research team published a study in an American Heart Association journal suggesting that synthetic cooling agents used in e-cigarettes, including WS-3 and WS-23, may disrupt cardiac electrical activity and increase arrhythmia risk. In animal experiments, WS-23 tripled premature heartbeats.
Jun.16
North Carolina Adds $1,000 Vape Shop Tax and 21+ Age Verification Requirement
North Carolina Adds $1,000 Vape Shop Tax and 21+ Age Verification Requirement
North Carolina’s new state budget introduces additional vape retail regulations, including a $1,000 tax on vape shops and mandatory age verification requiring customers to be at least 21.
Jul.08
ITGA Americas Meeting Calls for Balanced Regulation as Tobacco Growers Warn of Pressure on Farms and Legal Supply Chains
ITGA Americas Meeting Calls for Balanced Regulation as Tobacco Growers Warn of Pressure on Farms and Legal Supply Chains
ITGA said tobacco grower organizations from five Americas countries called for stronger regional cooperation and balanced regulation, warning that restrictive policies could pressure farmers and legal supply chains. The article also provides data on major tobacco-producing countries in the Americas.
Special Report
Jun.02