The Challenges of Purchasing E-Cigarettes in Australia

Several users from Australia took to the social media platform Twitter to share their experiences in legally purchasing e-cigarettes from New Zealand through prescription. 2FIRSTS has discovered that these users all emphasized the legality of this action.

In fact, Australia has completely banned the sale of disposable e-cigarettes since May this year. The only legal way to purchase them is through a prescription issued by a general practitioner, allowing for purchase at pharmacies or through foreign websites. Any other means of purchasing, such as buying them from tobacco or convenience stores, is considered illegal.

Why do you need a prescription to purchase e-cigarettes? This is because in Australia, the Therapeutic Goods Administration (TGA) believes that e-cigarettes may help smokers quit smoking, and thus, they are considered "therapeutic goods" in the country. However, smokers must be diagnosed by a general practitioner to determine if they need to use e-cigarettes as part of their "smoking cessation therapy," hence the prescription is also referred to as "nicotine replacement therapy.

So, what is the actual effect of the "prescription e-cigarette" model vigorously promoted by the Australian government?

The sudden intensification of the e-cigarette ban.

Australia's policy allowing the purchase of e-cigarettes with a prescription did not emerge this year, but has been in effect since October 1, 2021.

When the policy was first introduced, the Australian government mandated that consumers must have a prescription to purchase all nicotine e-cigarette products. However, due to the abundance of tobacco shops in Australia, the process of obtaining a prescription from a general practitioner proved to be overly complicated, leading to the policy not achieving the intended impact.

In May of this year, the Australian government further tightened its control over e-cigarettes by implementing a comprehensive ban on the sale of disposable e-cigarettes and explicitly prohibiting unauthorized e-cigarette products from entering Australia.

This means that the previous option for consumers to ignore the issue of "e-cigarette prescriptions" has become history. If they wish to use e-cigarettes, they must actively consult a general practitioner to obtain a prescription. At the same time, all e-cigarette shops in Australia, as well as the e-cigarette businesses in tobacco and retail stores, have to cease operations.

Rigid compliance market

Zhang Hua (pseudonym), who is involved in the e-cigarette business in Australia, provided a detailed explanation to 2FIRSTS about the process of obtaining an e-cigarette prescription offline.

Firstly, patients need to consult a general practitioner to obtain a prescription for e-cigarettes. The price of the prescription is approximately 70 Australian dollars (equivalent to about 330 Chinese yuan). The choice of treatment duration includes 3 months, 9 months, and 12 months, with the specific duration determined by the doctor based on individual circumstances. After obtaining the prescription, patients also need to contact the pharmacy in advance to order the e-cigarettes, as most pharmacies do not regularly stock e-cigarette products.

In addition, it has been discovered by 2FIRSTS that e-cigarette prescriptions can also be issued online, albeit at a relatively higher cost.

On a website claiming to be Australia's leading clinic for smoking and nicotine e-cigarette harm reduction, 2FIRSTS discovered that the website offers an application service for obtaining e-cigarette prescriptions online. Applicants are required to provide basic personal information and smoking history, as well as pay a fee of 85 Australian dollars (approximately 400 Chinese yuan) in order to obtain a 12-month prescription.

What kind of products can be included in the pharmacy system? Zhang Hua claimed that this requires distributors or importers to submit declarations to the local Australian government. Once the declaration is approved, they also need to find pharmacies willing to sell these products.

However, finding pharmacies willing to carry e-cigarette products is not an easy task. On July 5th, 2FIRSTS reported that in order to convince Australian pharmacies to sell VEEV, an e-cigarette product, international tobacco giant Philip Morris International (PMI) voluntarily gave up 80% of its sales profits.

In addition, Zhang Hua further explained that the e-cigarettes sold in pharmacies are refillable products with a capacity of 2ml. However, there is a limited variety of flavors available, mainly consisting of menthol and some basic flavors. Typically, there are two brands available, one of which is the renowned Chinese brand RELX (known as Yuelke).

However, according to Zhang Hua's opinion, the legal e-cigarette business in Australia has almost no market, and prescriptions seem to be merely a formal policy requirement.

New Zealand Unexpectedly Turns a Profit

In Australia, there are two legal ways to purchase e-cigarettes: buying them from a pharmacy or using a method called the "personal import scheme.

According to 2FIRSTS, this method also requires a prescription. Once consumers obtain a prescription, they can make purchases on the official e-cigarette website outside of Australia, and the sellers will then ship the products to them. This method allows consumers to choose from various brands and flavors with few restrictions.

However, according to TGA regulations, this method requires individuals to import e-cigarettes in quantities that do not exceed three months' worth of usage (based on daily maximum usage recommended by manufacturers) and must not exceed 15 months' worth of usage within any 12-month period.

According to 2FIRSTS, it has been found that consumers who purchase e-cigarettes in this manner mainly do so from online e-cigarette stores in New Zealand.

According to industry insiders in the New Zealand market, there are numerous brands in the e-cigarette market, but no brand that is currently considered the absolute leader. One of the e-cigarette brands with relatively good sales is Airspops, which is owned by the renowned UK e-cigarette company AIRSCREAM.

The black market is "fierce" or "rampant".

However, both "e-cigarette stores" and "personal import programs" have a relatively limited market share. The primary sales of e-cigarettes in Australia still heavily rely on the illegal market, with the black market occupying more than 95% of the market share.

After the comprehensive ban policy was introduced in May this year, an Australian e-cigarette distributor took to TikTok to voice his opinion on the matter. He openly stated that he will not close his business due to the government's new regulatory measures and instead opt to continue operating in the "black market.

As of now, the ban on e-cigarette sales in Australia has been in effect for five months, and it appears that many retailers share the same viewpoint as the aforementioned retailers. According to Zhang Hua, there are approximately 2,000 e-cigarette stores and tobacco shops selling e-cigarettes in the Sydney area alone.

Zhang Hua added that due to the relatively weak law enforcement in Australia, although tobacco shops are occasionally inspected by regulatory authorities, the overall punishment is not strict. Typically, a first violation will result in a warning, a second violation may lead to the confiscation of goods, a third violation may result in a fine, and a fourth violation and onwards may lead to the revocation of the tobacco shop's operating license. However, even if ordered to cease operations, shop owners often start afresh by changing their name or replacing their license.

According to reports, the main e-cigarette brands in Australia's black market are IGET, HQD, GUNNPOD, and WAKA. As per Zhang Hua, IGET holds the largest market share, estimated to be between 60% and 70%, while the remaining three brands occupy approximately 20% to 30% of the market.

However, due to Australia's strengthened regulations on the import of e-cigarettes, unauthorized e-cigarette products entering the market face significant risk of being detained. An industry insider specializing in e-cigarette logistics revealed to 2FIRSTS that Australia's e-cigarette import policy is extremely strict, making it difficult to obtain compliance procedures. "Grey market" products also carry a high risk of being confiscated, which is why the number of logistics companies able to transport e-cigarettes to Australia is very limited.

Will the future ban be lifted?

According to data released by the Australian Department of Health, over 3.5 million residents aged 14 and above in the country use cigarettes or e-cigarettes, accounting for approximately 13.5% of the total population. This proportion is comparable to the smoking rate in the leading European e-cigarette market, the United Kingdom, which stands at 13.3%.

In addition, according to the September export data released by the General Administration of Customs of China, China exported e-cigarette products worth 17.39 million US dollars to Australia. This also indicates that the demand for e-cigarettes in the Australian market is quite significant.

Many tobacco harm reduction experts and scholars are concerned that Australia's strict e-cigarette regulation policy may inadvertently fuel a thriving black market, undermining the country's original intention to ban e-cigarette products.

Former Member of Parliament for the state of Victoria in Australia, Paten, stated at the 2023 Global Tobacco and Nicotine Forum (GTNF) that the Australian government has failed to effectively implement harm reduction measures for tobacco. Caroline Beaumont, founder of MedicalNicotine, a general practitioner and prescription service provider in Australia, also expressed concerns about the incomplete eradication of over-the-counter e-cigarette use through the implementation of a prescription e-cigarette system, suggesting that this approach requires further consideration.

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