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.

JTI Research Finds 31% of UK Respondents Offered Illicit Tobacco, While 63% of Ennis Packs Lack Duty Marks
JTI Research Finds 31% of UK Respondents Offered Illicit Tobacco, While 63% of Ennis Packs Lack Duty Marks
Multiple JTI-backed studies in the UK and Ireland indicate that illicit tobacco remains visible across consumer interactions and local markets. In the UK, JTI research found that 31% of respondents said they had been offered illicit tobacco products. In Ireland’s Ennis area, a JTI-commissioned empty pack survey found that 63% of sampled cigarette packs did not carry Irish duty-paid markings. The findings come from industry research rather than official government estimates of illicit tobacco market size, but highlight continued concerns among regulators, legitimate retailers and tobacco companies over illicit trade.
Aug.19
From Nicotine Pouches to Soft Candy Forms: China Tobacco Hubei explores adjustable-release oral nicotine products
From Nicotine Pouches to Soft Candy Forms: China Tobacco Hubei explores adjustable-release oral nicotine products
China-based China Tobacco Hubei Industrial Co., Ltd. has filed a patent application covering an oral nicotine product and its preparation method. The patent proposes a soft candy-shaped oral nicotine product containing nicotine ingredients, gelling agents, sweeteners and alkaline pH regulators. Through formulation adjustments and homogeneous or dual-layer structures, the technology aims to achieve different nicotine release profiles. The filing reflects exploration of new oral nicotine product formats and controlled nicotine delivery approaches.
Aug.06
Product | PMI Launches ZYN Melts in UK, Extending ZYN Beyond Nicotine Pouches Into Dissolvable Tablets
Product | PMI Launches ZYN Melts in UK, Extending ZYN Beyond Nicotine Pouches Into Dissolvable Tablets
Philip Morris International (PMI) has launched ZYN Melts in the UK, introducing a fully dissolvable oral nicotine tablet format alongside the brand's existing nicotine pouches. The range includes Cool Mint and Peppermint, each offered at 1mg and 2mg of nicotine per tablet, creating four SKUs. Each can contains 20 tablets and is priced at £6.50 in the UK. Unlike ZYN nicotine pouches, Melts are placed between the upper lip and gum and dissolve completely during use.
News
Sep.29 by 2Firsts Perspectives
Philippines Weighs Unified Vape Tax as Lawmakers Back Risk-Based Rates and Government Seeks to Fill ₱66 Billion Revenue Gap
Philippines Weighs Unified Vape Tax as Lawmakers Back Risk-Based Rates and Government Seeks to Fill ₱66 Billion Revenue Gap
Philippine lawmakers are considering an overhaul of the country's vape excise-tax regime to eliminate the wide gap between taxes on nicotine salt and freebase nicotine liquids and reduce incentives for misdeclaration. House Bill 5364, filed by Rep. Rufus Rodriguez and Rep. Maximo Rodriguez Jr., would impose a unified ₱10-per-milliliter tax on vapor products, with 5% annual increases beginning in 2027. Rodriguez says the proposal could generate an average ₱6 billion in annual collections from 2027 through 2030. The debate comes as the Philippine government considers tobacco, vape and other health-tax reforms to help offset around ₱66 billion in revenue expected to be forgone under a proposed tax-relief package.
Aug.18
From a 2017 Launch to 48% of South Korea’s Heated Tobacco Market, KT&G Looks Back on a Decade of lil
From a 2017 Launch to 48% of South Korea’s Heated Tobacco Market, KT&G Looks Back on a Decade of lil
KT&G announced on Aug. 13, 2026, that it has opened “lil Archive,” a brand exhibition space in Seoul showcasing the evolution, technology platforms and future direction of its heated tobacco brand lil since its launch in 2017. KT&G said lil now spans three major platforms — lil SOLID, lil HYBRID and lil AIBLE — with more than 30 dedicated consumables, and held a 48% share of South Korea's heated tobacco market in the second quarter of 2026. The opening comes as lil enters its 10th year, with KT&G continuing to position the brand for expansion beyond its domestic market.
Aug.14
China Tobacco Yunnan files patent for cellulose-free nicotine pouch scaffold to replace microcrystalline cellulose
China Tobacco Yunnan files patent for cellulose-free nicotine pouch scaffold to replace microcrystalline cellulose
China Tobacco Yunnan Industrial Co., Ltd. has filed a patent application for a cellulose-free scaffold material for nicotine pouches, proposing a combination of bioceramic material, polydextrose and sugar alcohols to replace conventional microcrystalline cellulose and cellulose derivatives. The filing aims to address issues including powdery mouthfeel, residue and limited release control, while also reducing reliance on existing cellulose-based patent portfolios. In patent examples, one fast-release formulation reached a nicotine release rate of 50% at 10 minutes and more than 90% at 20 minutes.
Sep.02