The Latest Trends in the Electronic Cigarette Market

Aug.04.2022
The Latest Trends in the Electronic Cigarette Market
The Chinese e-cigarette market faces new regulations banning all fruit flavors and increasing tax rates. Major players include Smoore, Yooz, and Yikes.

What is the latest development in the electronic cigarette market? In the future, all electronic cigarettes will only feature tobacco flavor, and all other flavors such as fruit will be strictly prohibited. Prior to this announcement, other flavors dominated more than 90% of the entire electronic cigarette market. As for taxation, unlike traditional cigarettes that are subject to a comprehensive tax burden of over 55%, electronic cigarettes are currently only subject to a 13% value-added tax in China and are treated as ordinary consumer products.


On August 4th, BYD Electronics announced on their official public account that their wholly-owned subsidiary, BYD Precision Manufacture Co., Ltd., has received a Tobacco Monopoly Production Enterprise License (Electronic Cigarette Processing Enterprise) issued by the National Tobacco Monopoly Bureau. This signifies that BYD Electronics can now legally participate in the competition within the electronic cigarette processing industry.


BYD Electronic has announced that it has completed patent layouts and automated production lines for its entire range of electronic atomization products. The company has integrated various capabilities, including the development of new materials, precision mold design, product development, and intelligent manufacturing, with the goal of becoming a leader in the field of health and harm reduction.


In the field of electronic cigarette manufacturing, Smoore International is currently the absolute leader. According to the Sullivan report, in 2021, Smoore's global market share continued to expand to 22.8%, surpassing the total of second to fifth place, and maintaining its position as the world's largest manufacturer of electronic vaporization equipment.


According to the in-depth market research and investment strategy forecast report on China's electronic cigarette industry from 2022 to 2027 by the PwC Research Institute, it is revealed that...


According to the "2022 Blue Book on the Export of Electronic Cigarette Industry", the global electronic cigarette market is expected to exceed $108 billion in 2022, with overseas markets expected to grow at a rate of 35%.


Currently, there are over 1,500 e-cigarette manufacturers and brand companies in China, with over 70% of these companies focusing on exporting their products overseas. In 2021, China's e-cigarette export scale reached 138.3 billion yuan, a year-on-year increase of 180%. It is estimated that the total e-cigarette export amount for the entire year of 2022 will reach 186.7 billion yuan, with a growth rate of 35%.


According to information found on the official website of the State Tobacco Monopoly Administration, several companies listed on the A-share market, including Jinjia Shares, Jinlong Electromechanical, Shunhao Shares, Jincheng Medicine and Boton Shares, as well as Huabao Shares, have obtained electronic cigarette production qualifications one after another. As of now, there are already 128 enterprises and 9 brands that have obtained production licenses.


Yooz is a Chinese e-cigarette brand that holds over 60% of the market share and has also been granted a production quota. In comparison, Yooz has been approved for an annual production capacity of 329 million pods, while Snow+, MOTI, Platinum and X2 all have less than 80 million pods, and all other brands produce less than 5 million pods annually.


According to the response from the Tobacco Monopoly Bureau regarding the determination of production scale for electronic cigarette related companies, the provincial Tobacco Monopoly administrative authorities organized personnel to conduct on-site inspections of the nominal production capacity of equipment, average actual sales over three years, and industry equipment utilization rates. Based on relevant data and actual conditions, the Tobacco Monopoly administrative authorities conducted comprehensive calculations and determined the approved production scale for the companies.


In other words, as relevant policies continue to be implemented, electronic cigarette companies with outdated production and sales capabilities will find it difficult to obtain quotas, leaving only a few major players in the industry.


The "2022-2027 Report on In-depth Market Research and Investment Strategies for China's Electronic Cigarette Industry" was written by the Zhongye Puhua Research Institute. The report analyzed the supply and demand situation, current state of development, and changes in the industry, with a focus on development status, challenges faced by the industry, development suggestions, industry competitiveness, investment analysis, and trend forecasting. The report also provided reference suggestions and specific solutions for the industry's product development, based on a comprehensive understanding of the industry's overall development trends.


Statement


This article contains excerpts or reprints from third party sources, and the copyright belongs to the original media and the author. If there is any infringement, please contact us to delete it. Any unit or individual that needs to reprint, please contact the author, and do not repost directly.



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.

PMI Expands U.S. ZYN Portfolio With New 1.5 mg and 8 mg Strengths, Moves Toward a Unified 20-Pouch-Per-Can Format
PMI Expands U.S. ZYN Portfolio With New 1.5 mg and 8 mg Strengths, Moves Toward a Unified 20-Pouch-Per-Can Format
Philip Morris International is expanding its U.S. ZYN nicotine pouch portfolio with new 1.5 mg and 8 mg strengths and plans to move its core 3 mg and 6 mg dry-pouch products from 15 to 20 pouches per can in the fourth quarter of 2026. ZYN ULTRA is also commercially available, with FDA authorization covering 10 products at 9 mg and one 11 mg Smooth product. PMI U.S. lists the new 1.5 mg and 8 mg strengths as commercially available, but as of September 10 they do not appear on the FDA’s public authorization list. Public materials do not identify which PMTA submissions cover the two new strengths or their current review status.
Sep.11
India Steps Up Nicotine Pouch Enforcement as ZYN, White Fox Circulate and Drug Panel Urges Halt to New Nicotine Formulations
India Steps Up Nicotine Pouch Enforcement as ZYN, White Fox Circulate and Drug Panel Urges Halt to New Nicotine Formulations
India's Ministry of Health and Family Welfare has directed states to step up enforcement against nicotine pouch sales, citing increased availability through online and offline channels and concern about nicotine exposure among children. Reuters reported that international brands including ZYN and White Fox are being sold in India. A study led by ICMR-NICPR found pouches in seven of 10 surveyed locations and identified 68 brands and 445 flavors online. Separately, India's Drugs Technical Advisory Board recommended in August that no new nicotine formulation be approved.
Regulations
Sep.28 by 2Firsts Perspectives
Product | PMJ Adds Bold Ruby to IQOS ILUMA i Lineup in Japan, Convenience-Store Rollout Starts Sept. 29
Product | PMJ Adds Bold Ruby to IQOS ILUMA i Lineup in Japan, Convenience-Store Rollout Starts Sept. 29
Philip Morris Japan (PMJ) launched Bold Ruby as a new regular color for the IQOS ILUMA i and IQOS ILUMA i ONE in Japan on September 16, 2026, priced at JPY 6,980 and JPY 3,980, respectively. Initial sales began through IQOS online and physical channels, with convenience stores and selected tobacco retailers set to follow from September 29. Bold Ruby is a regular rather than limited-edition colorway and is available for the ILUMA i and ILUMA i ONE, but not the ILUMA i PRIME. The release does not involve changes to the devices' core hardware or functions.
Sep.22
Retail Case Study | Wisconsin Vape Market One Year After New Regulations: Johnny Vapes Reports 80% Sales Decline as Consumers Shift Online and Across State Lines
Retail Case Study | Wisconsin Vape Market One Year After New Regulations: Johnny Vapes Reports 80% Sales Decline as Consumers Shift Online and Across State Lines
According to WNCY on August 24, 2026, some independent vape retailers in Wisconsin say they have faced significant business pressure one year after new vape regulations took effect. Johnny Vapes, a retailer operating in northeast Wisconsin, said its store count fell from seven locations to four, sales declined by about 80%, and roughly 90% of its inventory was affected. Retailers said some consumers have shifted to online purchases or traveled to neighboring Michigan to buy vape products. The case highlights how local regulations can reshape retail operations, inventory management and consumer purchasing patterns.
Aug.28
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
From Nicotine Salts to Cocrystals: China’s Shenzhen Huabao institute explores a more stable form for sustained nicotine release
From Nicotine Salts to Cocrystals: China’s Shenzhen Huabao institute explores a more stable form for sustained nicotine release
China-based Shenzhen Huabao Collaborative Innovation Technology Research Institute Co., Ltd. has filed a patent application for a nicotine-ascorbic acid cocrystal, exploring a new solid-state form of nicotine. The patent proposes applications across e-liquids, heated tobacco sticks, oral tobacco, chewing tobacco and snuff. In nicotine pouch tests disclosed in the filing, cocrystal formulations showed less than a 6% decline in nicotine content after three months of accelerated storage and a release profile combining early-stage release with sustained delivery over 60 minutes. The filing reflects exploration of nicotine forms beyond conventional nicotine base and nicotine salts.
Aug.13