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.

Former FDA Scientist Questions ZYN Review Over Pouch Material and Microplastic Risk
Former FDA Scientist Questions ZYN Review Over Pouch Material and Microplastic Risk
A former FDA toxicologist has questioned whether the agency fully assessed the material used in ZYN nicotine pouches before authorizing them for sale, raising concerns over possible microplastic exposure, according to STAT and The Examination.
Jul.16
 Philip Morris Lowers Profit Outlook as Zyn Faces Competition and FDA Delays
Philip Morris Lowers Profit Outlook as Zyn Faces Competition and FDA Delays
According to Reuters, Philip Morris International (PMI) lowered its 2026 adjusted earnings-per-share forecast amid regulatory uncertainty around Zyn nicotine pouches, rising competition and shipment pressure in the U.S. market.
PMI
Jun.02
Product | IQOS ILUMA i REMIX Limited Edition Launches in Japan, Bringing New Design Elements to Heated Tobacco Devices
Product | IQOS ILUMA i REMIX Limited Edition Launches in Japan, Bringing New Design Elements to Heated Tobacco Devices
Philip Morris Japan (PM Japan) has introduced the IQOS ILUMA i REMIX Limited Edition series, including the IQOS ILUMA i Prime REMIX, IQOS ILUMA i REMIX and IQOS ILUMA i ONE REMIX devices. The limited-edition models were officially announced in Japan on June 9, 2026, and began a phased market rollout from June 10. Featuring gradient color designs and visual customization elements, the collection highlights PMI’s continued use of limited editions to enhance brand experience within its heated tobacco portfolio.
Innovation
Jul.21 by 2Firsts Perspectives
WIRED Investigation: Chinese-Made Vapes Turn to 6-Methyl-Nicotine and Other Analogs, Challenging U.S. Regulation
WIRED Investigation: Chinese-Made Vapes Turn to 6-Methyl-Nicotine and Other Analogs, Challenging U.S. Regulation
U.S. technology and investigative publication WIRED has examined how nicotine analogs are emerging as a new challenge for the country’s vape regulatory framework. The article argues that after the U.S. expanded federal oversight of nicotine products in 2022, some manufacturers began using nicotine-like compounds such as 6-methyl-nicotine that may fall outside existing definitions. Researchers cited by WIRED said some nicotine analogs could be more potent than traditional nicotine, although human health impacts remain unclear. U.S. policymakers are considering broader definitions of nicotine to bring these compounds under federal oversight.
Jul.27
Chinese Disposable Brands OXBAR, LYCO Challenge Vuse and JUUL: Pennsylvania’s Pending List Offers a Glimpse of the Future Legal Vape Market
Chinese Disposable Brands OXBAR, LYCO Challenge Vuse and JUUL: Pennsylvania’s Pending List Offers a Glimpse of the Future Legal Vape Market
Pennsylvania’s June 26 ENDS Pending Certifications list previews the state’s future legal vape market, placing Vuse, JUUL and Logic alongside Chinese-linked disposable brands OXBAR and LYCO. Shaped by PMTA eligibility and state rules, the list shows competition shifting from market share to market access.
Special Report
Jul.06
BAT's VELO Partners With McLaren F1 Team for Global Fan Campaign to Expand Nicotine Pouch Brand Reach
BAT's VELO Partners With McLaren F1 Team for Global Fan Campaign to Expand Nicotine Pouch Brand Reach
BAT-owned nicotine pouch brand VELO and the McLaren Mastercard Formula 1 Team have launched a global fan engagement campaign offering motorsport enthusiasts opportunities to win exclusive team-related experiences. The initiative aims to connect racing culture, fan interaction and VELO’s brand experience across global markets. The partnership reflects BAT’s broader strategy of expanding modern nicotine product brands beyond traditional tobacco categories through lifestyle and cultural marketing.
Jul.23