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.

Fifth Circuit Hears Challenge to FDA’s Standard for Reviewing Flavored Vape Applications
Fifth Circuit Hears Challenge to FDA’s Standard for Reviewing Flavored Vape Applications
A three-judge panel of the U.S. Court of Appeals for the Fifth Circuit heard oral arguments on Tuesday in a case brought by seven small vape-liquid companies challenging the Food and Drug Administration’s denial of marketing authorization for their flavored electronic nicotine products.
Apr.30 by 2FIRSTS.ai
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
Sweden Becomes First EU Country to Reach Smoke-Free Status as Daily Smoking Falls to 4.8%
Sweden Becomes First EU Country to Reach Smoke-Free Status as Daily Smoking Falls to 4.8%
According to the latest CAN report and multiple media reports, Sweden’s daily smoking rate fell to 4.8% in 2025, below the commonly used 5% smoke-free threshold, making it the first EU country to reach that benchmark.
News
Jun.05
2Firsts Exclusive Analysis | RLX Q1 Revenue Rises 96.2%, International Business Points to a More Integrated Global Strategy
2Firsts Exclusive Analysis | RLX Q1 Revenue Rises 96.2%, International Business Points to a More Integrated Global Strategy
RLX Technology’s Q1 net revenues rose 96.2% year over year, with international business accounting for 72.3% of total revenue. Beyond the headline growth, the results point to deeper globalization: European operations, Nexus supply-chain integration and a broader product portfolio are becoming key signals to watch.
Special Report
May.20
Türkiye Records 4,163 E-Cigarette Smuggling Raids Over Five Years, With Seizures Worth TRY 1.84 Billion
Türkiye Records 4,163 E-Cigarette Smuggling Raids Over Five Years, With Seizures Worth TRY 1.84 Billion
Turkish Trade Minister Ömer Bolat disclosed enforcement figures on e-cigarette smuggling in response to a written parliamentary question. Over the past five years, Türkiye recorded 4,163 raids targeting e-cigarette smuggling, preventing illegal e-cigarettes, liquids and components worth TRY 1.84 billion, or about USD 40.68 million based on an exchange rate of USD 1 = TRY 45.2339, from reaching the market.
May.07 by 2FIRSTS.ai
Capital Group Takes 5.61% Stake in KT&G, Joining Major Foreign Shareholders
Capital Group Takes 5.61% Stake in KT&G, Joining Major Foreign Shareholders
KT&G disclosed in a regulatory filing on Friday that Capital Research and Management Company, the investment management arm of Capital Group, had acquired a 5.61% stake through purchases made on April 22 and May 4. The move places Capital Group among KT&G’s prominent foreign shareholders, alongside BlackRock, First Eagle Investment Management and Singapore’s sovereign wealth fund GIC.
May.08 by 2FIRSTS.ai