The Future of China's E-Cigarette Market in Russia

Apr.11.2023
The Future of China's E-Cigarette Market in Russia
China's e-cigarette industry sees growth in Russia as international tobacco companies exit the market.

In 2022, bilateral trade between China and Russia is expected to exceed $190 billion, with estimates that it will surpass $200 billion in 2023. Despite obstacles in Russia's trade partnership with Europe, China remains committed to actively fostering economic and trade relations with Russia, supporting both the Russian economy and the development of the "One Belt One Road" initiative.


According to data from real estate platform DNA Realty, there are over 5,000 e-cigarette shops in Russia as of the end of 2021, including over 1,000 in the Moscow region. According to data from the nicotine market participant association PAURRENS, the number of e-cigarette shops selling to populations of million-plus cities in the Russian Federation increased 75% year-on-year to reach 10,399 in 2022. In Moscow, the number of shops increased by 108% to 2,668. Additionally, a survey shows that e-cigarette sales make up the majority of profits for these stores.


Previously, 2FIRSTS reported on British American Tobacco (BAT) exiting the tobacco markets in Russia and Belarus; Philip Morris International (PMI) considering staying in the Russian market; Japan Tobacco International (JTI) pausing investments in Russia; and Imperial Brands (IMB) transferring their Russian business. The withdrawal of international tobacco companies could lead to a shortage in the Russian tobacco market and an increase in tobacco product prices. There is potential for alternative tobacco products, such as new tobacco products and electronic cigarettes, with electronic cigarette consumers comprising 6.8% of the market. According to data from the consumer electronics information platform igeekphone.com, Russia is the third largest importer of electronic cigarettes globally, with China comprising 90% of the market and exporting goods worth 82.5 billion rubles (8.35 billion yuan) to Russia in 2021. It is anticipated that this market will grow by 35% in 2022, reaching 111 billion rubles (11.27 billion yuan).


According to Igeekphone, after the withdrawal of European and American tobacco companies, Chinese electronic cigarettes have a clear competitive advantage in the Russian market. This provides a development opportunity for Chinese tobacco companies and is expected to occupy a market share in Russia in the short term. In the next three years, the future looks bright for Chinese electronic cigarettes to enter the Russian market. However, Chinese companies entering the Russian market should pay attention to regulations to ensure compliant operations.


Further Reading:


The four major tobacco companies have refused to withdraw from Russia.


PMI declares it will not withdraw from the Russian market and will fight the Kremlin to the end.


Japan Tobacco says Russian factory will continue operations - had considered selling Russian business in 2022.


British American Tobacco (BAT) has announced that it will completely withdraw from the Russian and Belarusian markets by 2023.


Russia's tobacco shops are expected to see a growth of 20% in 2022, with the majority of profits coming from sales of electronic cigarettes.


2FIRSTS engages in exchange with experts from Russian Academy of Sciences to discuss enhancing scientific research cooperation on electronic cigarettes between China and Russia.


References:


The countdown to the Russian e-cigarette market in 2023 has begun.


On December 18th, 2022, the news outlet 1prime.ru reported on consumer markets. The article discusses recent developments in the market, without specifying which market it is referring to.



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.

Philippine Local Governments Urge Marcos to Prioritize Smoke- and Vape-Free Bill
Philippine Local Governments Urge Marcos to Prioritize Smoke- and Vape-Free Bill
The League of Municipalities of the Philippines (LMP) has urged President Ferdinand Marcos Jr. to prioritize the Smoke- and Vape-Free Bill, seeking a nationwide legal framework for tobacco and vape regulation. Local government leaders said national legislation would help standardize enforcement and strengthen public health measures. The proposal remains at the advocacy stage and has not yet become law.
Jul.29
Special Report | China Opens Draft Mandatory Heated Cigarette Standard for Comment, Multiple Heating Technologies Remain in Scope
Special Report | China Opens Draft Mandatory Heated Cigarette Standard for Comment, Multiple Heating Technologies Remain in Scope
China’s State Tobacco Monopoly Administration (STMA) has released a draft mandatory national standard for heated cigarettes, setting out detailed requirements for tobacco sticks, heating devices and aerosols. The proposal treats the stick and device as parts of the same product system, focuses on minimum safety and quality requirements, and leaves several heating architectures within scope.
Special Report
Jul.29
FDA Authorizes Four More Nicotine Pouches as Review Pilot Expands Beyond Initial Decisions
FDA Authorizes Four More Nicotine Pouches as Review Pilot Expands Beyond Initial Decisions
The FDA has authorized four additional on! nicotine pouches, bringing the U.S. total to 30. The decision marks another outcome of the agency’s nicotine pouch review pilot, whose communication and review practices are now being applied more broadly across the category. It also extends Helix’s authorized portfolio from on! PLUS to the earlier on! line. Yet all FDA-authorized nicotine pouches still come from subsidiaries of PMI or Altria, underscoring how concentrated U.S. regulatory access remains.
Aug.05
2Firsts Hosts U.S. Market Mid-Year Briefing: Companies Need to Reassess Product and Market-Access Strategies
2Firsts Hosts U.S. Market Mid-Year Briefing: Companies Need to Reassess Product and Market-Access Strategies
2Firsts held its 2026 U.S. Market Compliance and Development Mid-Year Briefing in Shenzhen, China, on July 28. The discussion examined how state-level requirements, proposed foreign-establishment registration rules and expanding supply-chain responsibilities are changing product and investment decisions in the U.S. tobacco and nicotine market.
Jul.29
Product | JT Launches Ploom AURA Glacier White in Japan, Expanding the Device Ecosystem Through Color and Accessories
Product | JT Launches Ploom AURA Glacier White in Japan, Expanding the Device Ecosystem Through Color and Accessories
Japan Tobacco Inc. (JT) has introduced the Ploom AURA Glacier White heated tobacco device in Japan, adding a new color option to the existing Ploom AURA lineup. The device maintains the existing SMART HEATFLOW technology and HEAT SELECT SYSTEM with four heating modes, while expanding the ecosystem through new accessories including front panels, back covers, a car holder and wireless charging covers. The product entered pre-sale in Japan on June 30, 2026, followed by broader retail availability from July 7.
Aug.03
PMI Global R&D Chief Meets Chinese Tobacco Regulator as China Advances Heated Cigarette Standards
PMI Global R&D Chief Meets Chinese Tobacco Regulator as China Advances Heated Cigarette Standards
Philip Morris International’s global R&D chief Michele Cattoni met Liu Sanjiang, deputy director of China’s State Tobacco Monopoly Administration, in Beijing on Aug. 27. The meeting comes as China advances mandatory standards for heated cigarettes and nicotine pouches, laying groundwork for their domestic introduction. Cattoni has held senior roles in PMI’s heated tobacco development, while China’s draft standard covers multiple heating architectures, including systems similar in principle to PMI’s IQOS ILUMA technology.
Aug.27