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.

Special Report | How Capital Is Reassessing the Global Tobacco and Modern Nicotine Industry: Lessons from a New York Forum
Special Report | How Capital Is Reassessing the Global Tobacco and Modern Nicotine Industry: Lessons from a New York Forum
Capital is reassessing the global tobacco and modern nicotine industry as heated tobacco, vaping and nicotine pouches reshape demand, profitability and regulation. At the 2026 New Approaches Summit in New York, investors and analysts examined whether smoke-free growth can sustain earnings, how regulation shapes startup value, and whether shareholder engagement can be more effective than divestment. The debate points to a broader shift: tobacco transition is increasingly becoming a capital-allocation, governance and valuation question.
Capital Markets
Oct.05
German Customs Seize 115,800 Vapes in €1.4 Million Tax Case
German Customs Seize 115,800 Vapes in €1.4 Million Tax Case
Germany's Magdeburg Main Customs Office seized 115,800 untaxed e-cigarettes containing a combined 4.366 million mL of e-liquid during four truck inspections between August 10 and September 4, 2026. The seizures prevented an estimated €1.397 million in tax losses and set a record for the customs office's jurisdiction. Criminal proceedings have been initiated against four truck drivers. The case follows a separate German investigation involving more than 7.6 million illicit vapes and an estimated €33.3 million in excise-tax losses.
Enforcement
Oct.13
PMI Expands Its Second Global and First Asian Business Services Hub in the Philippines, Serving 160 Markets and Scaling Up AI Capabilities
PMI Expands Its Second Global and First Asian Business Services Hub in the Philippines, Serving 160 Markets and Scaling Up AI Capabilities
Philip Morris International's PMI Business Solutions Philippines has expanded its global business services hub in Makati and plans to add more than 80 positions. Established in 2021 primarily to provide finance and IT support to about 20 markets, the center now employs 519 professionals delivering roughly 600 services across 160 markets. Its functions now span finance, human resources, IT, commercial operations, data analytics, supply chain and project management. PMI says the hub's next phase will focus on AI-enabled and higher-value work. The company did not disclose the size or investment cost of the expansion.
Sep.24
Product | PMI Launches TEREA Black Mint Pearl in Japan, Adding First Capsule Variant to Black Range With Nationwide Rollout From October 19
Product | PMI Launches TEREA Black Mint Pearl in Japan, Adding First Capsule Variant to Black Range With Nationwide Rollout From October 19
Philip Morris Japan (PMJ) launched TEREA Black Mint Pearl on October 15, 2026, introducing the first capsule-equipped heated tobacco stick in the TEREA Black range for IQOS ILUMA devices. The product combines a strong menthol profile with a crushable mint capsule and is priced at ¥640 per 20-stick pack, including tax. Sales began at four IQOS stores and selected retail partners on October 15, with distribution expanding to convenience stores and other tobacco retailers nationwide from October 19. The launch brings Japan's TEREA portfolio to 28 variants, including 21 menthol-related products, or 75% of the range.
product
Oct.16 by 2Firsts Perspectives
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
Product | JNR Launches Shisha Hookah 70K E-Hookah With 60ml E-Liquid and 0.6% Nicotine
Product | JNR Launches Shisha Hookah 70K E-Hookah With 60ml E-Liquid and 0.6% Nicotine
JNR has introduced the Shisha Hookah 70K, a high-capacity rechargeable disposable vape designed around a hookah-inspired experience. The device comes prefilled with 60ml of e-liquid at 6mg/ml (0.6%) nicotine strength, alongside a 1,000mAh rechargeable battery and a 0.38Ω single mesh coil. It also features adjustable airflow and battery and e-liquid level displays. JNR claims the device can deliver up to 70,000 puffs and offers more than 20 flavors. Retail listings for the product have appeared in markets including Tunisia.
Market
Aug.24 by 2Firsts Perspectives