Regulation Spurs Growth in China's E-Cigarette Industry

Jul.31.2022
China's e-cigarette industry has undergone reform in recent years, causing some firms to seek overseas markets, but others have obtained production licenses domestically.

Over the past few years, the domestic electronic cigarette industry has been developing in a disorderly manner, with frequent industry problems. However, in the past two years, with the successive release of new policies to regulate electronic cigarettes, this chaos has been effectively addressed. Now, as regulations on electronic cigarettes become stricter in China, many companies are choosing to expand overseas and explore the untapped market for electronic cigarette consumption abroad.


As the effective date of the new e-cigarette regulations approaches, some domestic e-cigarette companies are gradually becoming legitimate players.


In recent days, several leading e-cigarette companies have obtained production permits. For example, on July 22, well-known e-cigarette brand RELX's parent company, Huoxin Technology (RLX.US), received a production enterprise license from China's State Tobacco Monopoly Administration. On July 20, e-cigarette vaporization equipment manufacturer, Smoore International (06969.HK), also received a tobacco monopoly production enterprise license.


In addition, several A-share listed companies, including Jingjia Corporation, Jinlong Electrical and Mechanical, Shunhao Corporation, Jincheng Pharmaceutical, Boteng Corporation, and Huabao Corporation have obtained licenses to produce electronic cigarettes. According to incomplete data from Red Weekly, more than 100 companies have obtained regulatory certificates so far.


For a long time, the electronic cigarette industry has been subject to strict regulation, especially this year with the introduction of the "Electronic Cigarette Management Measures," the national standard for electronic cigarettes, and supporting policies. The importance of licensed operation for electronic cigarette companies is self-evident. Several electronic cigarette listed companies have told "Hongzhou Weekly" that the issuance of production licenses is a standard event in the legal and standardized development of the electronic cigarette industry, and they believe that the industry will continue to be regulated and develop further in the future.


In the eyes of the industry, as relevant regulatory policies continue to be implemented, some electronic cigarette companies with outdated production capacity and lower technological content will be shut out by regulatory authorities. The pattern of the strong getting stronger will be further highlighted.


This article includes quoted or reprinted content from third-party sources, whose copyrights belong to the original media and authors. If there is any infringement, please contact us for deletion. Any organization or individual wishing to reprint must contact the author, and should not do so directly.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Reuters Tracks Big Tobacco’s Shift Beyond Cigarettes as Nicotine Pouches Vie for the Next Growth Curve
Reuters Tracks Big Tobacco’s Shift Beyond Cigarettes as Nicotine Pouches Vie for the Next Growth Curve
As cigarette markets face long-term pressure, major tobacco companies are increasingly turning to nicotine pouches in search of growth beyond combustible tobacco. Reuters has examined whether nicotine pouches can become the next strategic growth platform for companies including Philip Morris International, British American Tobacco and Japan Tobacco. PMI strengthened its position through the acquisition of Swedish Match and its ZYN brand, while BAT and JTI continue expanding their own nicotine pouch portfolios. The category has gained attention because of its smoke-free, device-free format, but regulation, youth-use concerns and market scale will determine whether it can become a long-term growth engine.
Regulations
Aug.18 by 2Firsts Perspectives
Swedish-Founded Nicotine Pouch Retailer GotPouches Shifts to U.S.-Based Operations, Reaching Over 25 States
Swedish-Founded Nicotine Pouch Retailer GotPouches Shifts to U.S.-Based Operations, Reaching Over 25 States
Swedish-founded online nicotine pouch retailer GotPouches has completed the localization of its U.S. operations under UpNorth Retail LLC, with corporate operations in Franklin, Tennessee, domestic fulfillment from Nashville and U.S.-based customer support. The company says its catalog covers more than 20 nicotine pouch brands and it currently serves customers in more than 25 U.S. states.
Sep.18
BAT Expands ITC Infotech Partnership Across Poland, Romania and India to Advance AI
BAT Expands ITC Infotech Partnership Across Poland, Romania and India to Advance AI
ITC Infotech has expanded its multi-year strategic technology partnership with British American Tobacco (BAT), providing technology services across Poland, Romania and India while continuing to support BAT's newly launched Future Capabilities Centre in India and existing technology hubs in Malaysia and Mexico. The companies said the agreement will focus on AI-enabled innovation, technology capability building and greater operational efficiency. The partnership also aligns with BAT's broader Fit2Win transformation programme, under which the group is expanding the use of external technology and business-services partners to simplify its global operating model.
Aug.13
German Tobacco Tax Revenue Falls 10.8% Through August as Tax-Paid Cigarette Volume Drops 12.6%
German Tobacco Tax Revenue Falls 10.8% Through August as Tax-Paid Cigarette Volume Drops 12.6%
Germany collected €9.789 billion in total tobacco tax revenue from January through August 2026, down 10.8% from a year earlier, according to the Federal Ministry of Finance. Germany's tobacco tax base covers not only cigarettes and fine-cut tobacco but also heated tobacco and vaping liquids taxed as tobacco substitutes. The German Association of the Tobacco Industry and Novel Products, or BVTE, citing federal statistical data, said tax-paid cigarette volume fell 12.6% to 40.6 billion sticks. BVTE is using the latest figures to argue against further tax increases planned from 2027 through 2030, while Germany's parliament is scheduled to hold a first reading of the bill on September 24.
Sep.23
From Product Innovation to Integrated Solutions: NEXTECH Expands Its Global Heated Tobacco Solutions
From Product Innovation to Integrated Solutions: NEXTECH Expands Its Global Heated Tobacco Solutions
NEXTECH launched its NEXE Pro circumferential-heating tobacco stick globally at InterTabac 2026, as the company expands from product innovation into broader heated tobacco solutions. Amid intensifying competition across global HTP markets, NEXTECH is strengthening its R&D, manufacturing and pre-launch support capabilities to serve different types of business customers.
Industry Insight
Sep.15
U.S. Customs Plan to Require Foreign Export Declarations Could Deal ‘Devastating’ Blow to China’s Vape Exports, Logistics gl Expert Says
U.S. Customs Plan to Require Foreign Export Declarations Could Deal ‘Devastating’ Blow to China’s Vape Exports, Logistics gl Expert Says
A U.S. Customs and Border Protection proposal to collect foreign export declarations and other overseas customs documents could expose discrepancies in the value, classification and description of China-made vape shipments entering the United States. A veteran Chinese logistics professional told 2Firsts that the measure, if implemented, could undermine the all-inclusive shipping model used by some unauthorized vape exporters and push parts of the trade toward costlier underground channels. The risk extends beyond higher duties: accurately declared products may also be more readily identified as unauthorized e-cigarettes subject to FDA enforcement.
Special Report
Sep.07