Impact of Policies on Global E-cigarette Industry

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Impact of Policies on Global E-cigarette Industry
Russian e-cigarette sales hit by policy impact, while distributors cautiously manage inventory to control stock.

Due to policy influences, the Russian e-cigarette industry has faced significant challenges in terms of sales for some e-cigarette brands. As a result, e-cigarette distributors are currently adopting a more cautious approach in managing their procurement to better control inventory levels.


The FDA has issued a marketing veto on six flavors of e-cigarette products from the Vuse Alto brand, owned by British American Tobacco. In response, British American Tobacco has expressed doubts about these rejections and plans to seek an immediate suspension of the veto on the mint flavor.


PMI's HNB product, IQOS ILUMA series, has experienced rapid global expansion within just two years. Despite not yet receiving PMTA approval in the United States, IQOS ILUMA has gained substantial success overseas.


The e-cigarette market has been experiencing rapid growth worldwide. However, regulations concerning e-cigarettes vary from country to country, making it necessary for e-cigarette companies to carefully consider the entry requirements of each country before expanding into new markets. In light of this situation, e-cigarette companies face a crucial strategic dilemma: whether to seek certification and compliance first or to swiftly enter the market.


In recent days, the conflict between Israel and Palestine has escalated, with Israel declaring war on Hamas. As a result, China has halted the shipment of certain e-cigarette products to Israel, causing a delay in logistics of up to two weeks to a month.


During a market visit to Russia, 2FIRSTS discovered that the brand VUSE, owned by British American Tobacco, has launched a disposable e-cigarette product called VUSE PRO 5000, which boasts a capacity of 5000 puffs.


The UK has introduced a new public consultation seeking opinions on how e-cigarettes can help smokers quit while reducing their attractiveness to underage youths. Options under consideration include a complete ban on the sale of disposable e-cigarettes, restricting their sales, and ensuring they are not marketed in various flavors and colors that may appeal to young people.


The Supreme Court of the United States has rejected an appeal against the recent rejections by the Food and Drug Administration (FDA) of various e-cigarette applications for marketing approval.


A Malaysian e-cigarette distributor has informed 2FIRSTS that local organizations have started gathering petitions from e-cigarette retailers and consumers to oppose Malaysia's smoking control bill. They plan to submit these petitions to the government in an effort to halt the implementation of the GEG bill.


Law enforcement authorities in Ho Chi Minh City, Vietnam, conducted a surprise inspection of a company and uncovered a large quantity of illegal e-cigarettes and e-cigarette liquid products in their warehouse. The total value of these products amounted to 7 billion Vietnamese dong (approximately 20.9 million yuan).


Shareholder Flashlight Capital of KT&G has released an official statement, requesting the company to disclose relevant information, including the profit from KT&G's export business, the global distribution contract with Philip Morris International, and the $19 million "consulting fee".


In the budget proposal for Ireland in 2024, there is a plan to increase the prices of cigarettes. Additionally, starting from 2025, e-cigarette products will be subject to taxation.


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