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.

Product | JTI Launches Ploom AURA Teal Electric Pop in South Korea, Its First Dual-Color Edition
Product | JTI Launches Ploom AURA Teal Electric Pop in South Korea, Its First Dual-Color Edition
JTI Korea launched the Ploom AURA Teal Electric Pop limited edition in South Korea on September 1, 2026, marking the first dual-color design in the Ploom AURA range. The device combines a dark green body with teal accents and is accompanied by matching Front Panel, Back Cover and Pocket Bag accessories. The standalone device is priced at KRW 29,000, with three additional device-and-accessory bundles available. The release continues JTI Korea's use of limited colorways and interchangeable accessories to expand the Ploom AURA portfolio without introducing a new hardware platform.
Sep.03
Philip Morris Malaysia Again Meets Religious Authority Over Cigarette Alternatives as Perlis Mufti Responds on Halal Criteria
Philip Morris Malaysia Again Meets Religious Authority Over Cigarette Alternatives as Perlis Mufti Responds on Halal Criteria
Philip Morris Malaysia Managing Director Naeem Shahab Khan met Perlis Mufti Mohd Asri Zainul Abidin on September 17 and presented the company's shift from conventional cigarettes toward alternative products. The mufti said a product could be considered halal if it is clean, its side effects are not harmful or can be controlled, and it does not involve excessive waste. His remarks did not mention IQOS or any other specific PMI product and did not amount to a new product-specific religious ruling. It was at least the second publicly reported engagement between Philip Morris Malaysia and a Malaysian religious institution over cigarette alternatives within six months.
Regulations
Sep.18 by 2Firsts Perspectives
Product | BAT Expands VELO Peach Ice Medium to FamilyMart Stores Nationwide in Japan
Product | BAT Expands VELO Peach Ice Medium to FamilyMart Stores Nationwide in Japan
British American Tobacco Japan (BAT Japan) expanded VELO Peach Ice Medium to FamilyMart stores nationwide in Japan from September 7, 2026. The oral tobacco product first launched on July 6 and had previously been sold through VELO's official online store, glo Store Ginza and tobacco retailers. It combines peach flavor with menthol cooling at a Medium strength level and is priced at JPY 360. Japanese tobacco retailers list 15 pouches per pack. The move adds the new SKU to an existing nationwide FamilyMart distribution network for VELO rather than marking the brand's first entry into the convenience-store chain.
Sep.15
Florida Governor DeSantis Expands TANF Restrictions, Blocking Welfare Benefits From Buying Tobacco and Vapes
Florida Governor DeSantis Expands TANF Restrictions, Blocking Welfare Benefits From Buying Tobacco and Vapes
Florida Governor Ron DeSantis announced an expansion of Temporary Assistance for Needy Families (TANF) restrictions that would prohibit Electronic Benefit Transfer (EBT) funds from being used to purchase tobacco and vaping products. The state will amend its TANF State Plan and submit the changes for federal approval. Florida officials said the restrictions would not affect eligibility for temporary cash assistance or the amount of benefits received, but would change how funds can be spent.
Aug.25
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
Product | R.J. Reynolds Launches Four Flavored Vuse Pro Pods for Vuse Alto Devices in U.S.
Product | R.J. Reynolds Launches Four Flavored Vuse Pro Pods for Vuse Alto Devices in U.S.
R.J. Reynolds Vapor Company has introduced Vuse Pro prefilled pods in Peach, Berry, Watermelon and Fresh Mint in selected U.S. states. Vuse’s U.S. website says the pods are intended for use with existing Vuse Alto devices. Each contains 2.0 mL of e-liquid at 5.0% nicotine by weight, uses nicotine salts and is offered in two- and four-pod packs. Reynolds said the rollout includes mandatory ID scanning for every purchase, purchase limits, stronger retailer-accountability requirements and strict age-restricted marketing standards. The four pods have not received marketing authorization from the U.S. Food and Drug Administration.
Sep.10