Shenzhen's Electronic Cigarette Exports Dominate 68.3% of China's Total

Apr.03.2023
Shenzhen's Electronic Cigarette Exports Dominate 68.3% of China's Total
Shenzhen exported CNY 460.9 billion ($70.9 billion) worth of e-cigarettes in 2022, accounting for 68.3% of China's total e-cigarette exports.

In 2022, Shenzhen exported electronic cigarettes worth ¥46.09 billion, accounting for 68.3% of the country's total export value. In the first two months of this year, Shenzhen's electronic cigarette exports reached ¥7.1 billion, a year-on-year increase of 38.9%, accounting for 66.9% of the country's total electronic cigarette exports. This is the first time that Shenzhen Customs has released data on electronic cigarette exports.


According to customs data, the main characteristics of Shenzhen's electronic cigarette exports are as follows:


First, the majority of exports come from privately-owned businesses, accounting for over 85% of the total export value.


In the first two months of this year, private enterprises in Shenzhen achieved an export value of RMB 6.09 billion, a growth of 42%, accounting for 85.8% of the total export value of electronic cigarettes from Shenzhen during the same period.


Secondly, exports through general trade account for over 90%.


From January to February this year, the main method of exporting electronic cigarettes was through general trade, with a total value of 6.53 billion yuan, a 40.5% increase and accounting for 92.1% of all exports.


The term "general trade" refers to the unilateral import or export of goods by enterprises in China that hold import-export rights. In the export of electronic cigarettes from Shenzhen, China, the general trade method has a relatively high proportion. This means that direct commodity exchanges occur between the electronic cigarette producers in Shenzhen and overseas buyers, rather than through a third-party trade intermediary. This can bring more profit margins and direct market feedback, allowing enterprises to have a better understanding of overseas market demand and trends.


Thirdly, the products are mainly sold to the European and American markets. Over 30% of the products are exported to the United States, but the export value has decreased.


In the first two months of this year, Shenzhen's exports to the United States amounted to RMB 2.29 billion, a decrease of 20.1%, and accounted for 32.3% of the total value of Shenzhen's electronic cigarette exports during the same period. This is a 5.8% decrease from 2022. However, the United States remains the largest market for Shenzhen's electronic cigarette exports.


During the same period, export growth to the European Union, United Kingdom, and Russia increased by 1.9 times, 90%, and 2.7 times respectively, accounting for a total of 40.9%.


Fourthly, exports to Southeast Asia have increased by 1.3 times.


According to customs data, exports to ASEAN reached 420 million yuan in the first two months of this year, an increase of 130%, accounting for 6% of the total export value.


In the first two months prior to 2023, the electronic cigarette export market in Shenzhen city was valued in RMB and categorized as follows: (unit: RMB billion,%,%).


Source of Data: Shenzhen Customs


Reference:


In February of 2023, electronic cigarette exports in Shenzhen grew by nearly 40%.


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