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.

Virginia Tobacco Retail Permit Takes Effect October 1, Covering Vapes as More Than 3,000 Businesses Apply in September
Virginia Tobacco Retail Permit Takes Effect October 1, Covering Vapes as More Than 3,000 Businesses Apply in September
Virginia's new retail tobacco permit system took effect October 1, requiring sellers of vapes, nicotine products and related devices and accessories to obtain a Retail Tobacco Permit for each business location. Virginia ABC said more than 3,000 businesses applied in September alone, creating a processing backlog. Qualifying applicants that filed before October 1 may temporarily operate under a Letter of Authorization. The new store-level permit also sits alongside Virginia's existing vape product directory, where sales of unlisted liquid nicotine or nicotine vapor products can trigger civil penalties starting at $5,000.
Regulations
Oct.03
Product | BAT Expands VELO Travellers’ Collection With Mexico, Spain and Sweden Summer Edition Nicotine Pouches
Product | BAT Expands VELO Travellers’ Collection With Mexico, Spain and Sweden Summer Edition Nicotine Pouches
British American Tobacco (BAT) Global Travel Retail has expanded the VELO Travellers’ Collection with three new Summer Editions: Mexico, Spain and Sweden. Inspired by destination themes, the new nicotine pouch variants are designed for global travel-retail channels. The launch further strengthens VELO’s positioning as a travel-retail exclusive product collection.
Aug.27
Philippines Mandates Safety Certification for Nicotine Pouches, Gives Industry 12 Months to Comply
Philippines Mandates Safety Certification for Nicotine Pouches, Gives Industry 12 Months to Comply
The Philippines Department of Trade and Industry has placed nicotine pouches under mandatory product certification through Department Administrative Order No. 26-07, Series of 2026. Nicotine pouches must obtain a Philippine Standard, or PS, license before they can be manufactured, imported, packed, distributed or sold in the country. The regime requires testing for nicotine content, pH and water activity, while packaging must disclose nicotine strength, ingredients, allergens, batch information, the PS certification mark and prescribed health warnings. Existing market participants have a 12-month transition period to comply.
Regulations
Oct.12
EU Tobacco Tax Reform Targets November Push as Sweden Holds Nicotine-Pouch Minimum at €20 per Kilogram
EU Tobacco Tax Reform Targets November Push as Sweden Holds Nicotine-Pouch Minimum at €20 per Kilogram
The Irish presidency of the Council of the European Union is using bilateral talks to push the bloc’s Tobacco Taxation Directive toward a political agreement in November. According to Law360, citing an EU official, Sweden is unwilling to accept a minimum excise threshold above €20 per kilogram for nicotine pouches. Council negotiations have already lowered the European Commission’s original proposal, but a May 2026 presidency compromise still set the minimum at 10% of the tax-inclusive retail price or €30 per kilogram in 2028-29, with higher levels later.
Market
Sep.17 by 2Firsts Perspectives
Smoke-Free Business Hits 42% of Q2 Net Revenue as PMI’s First TNFD Report Covers Single-Use Electronics, Critical Raw Materials and IQOS Repairs
Smoke-Free Business Hits 42% of Q2 Net Revenue as PMI’s First TNFD Report Covers Single-Use Electronics, Critical Raw Materials and IQOS Repairs
Philip Morris International has published its first report aligned with the Taskforce on Nature-related Financial Disclosures, bringing its electronics supply chain and the use and end-of-life stages of smoke-free devices and consumables into its nature-related assessment. PMI said its smoke-free business accounted for about 42% of total net revenues in the second quarter of 2026. The report says non-circular electronic products, particularly single-use items, can increase consumption of limited natural resources and also details an IQOS repair pilot. A 2040 circularity scenario tests assumptions including a 50% reduction in product waste-related costs, 10% raw-material savings and a 25% substitution rate for refurbished products versus new products.
Sep.23
Australia-China Operation Dismantles Tobacco Smuggling Network: 112 Containers, 60 Arrests and A$92 Million in Illicit Tobacco
Australia-China Operation Dismantles Tobacco Smuggling Network: 112 Containers, 60 Arrests and A$92 Million in Illicit Tobacco
According to The Maritime Executive on August 19, 2026, the Australian Border Force (ABF) and China’s Anti-Smuggling Bureau of General Administration of China Customs worked together to dismantle an international illicit tobacco smuggling network targeting Australia. According to information released by ABF on August 20, sustained information sharing and cooperation led to investigations into 112 shipping containers, with 91 found to contain illicit tobacco. Authorities seized more than 60 million cigarettes and 60 kilograms of loose-leaf tobacco, representing more than A$92 million in unpaid duties. More than 60 people suspected of involvement in the network were arrested in China.
Aug.20