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.
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