Top 10 News Stories that Define 2023 in Vaping Industry

Special Report by 2FIRSTS

Jan.04.2024

Top 10 News Stories that Define 2023 in Vaping Industry

Join us in reviewing the top 10 significant news stories of the year 2023.

Editor's Note:

In 2023, the era of high growth in the global vaping industry officially came to an end. Looking back on the year, under the dual influence of regulations and market forces, the global industry underwent profound changes that will have a far-reaching impact on its future.

As a global vaping industry media and think tank, 2FIRSTS is fully aware of the importance of news in a rapidly changing and challenging world. Over the past year, we have witnessed many significant events that changed the course of history while profoundly affecting our lives. We have selected the top 10 most important news stories of the year. Join us in reviewing these significant moments, reflecting on their impact, and working together for a better tomorrow.

1. UK Market Sees Overfilling of Disposable E-cigarettes

On February 6, 2023, the UK's Daily Mail reported that the "ELFBAR 600" product from ELFBAR was found to have an overdose of e-liquid. Subsequently, leading UK supermarket chains Tesco, Morrisons, and Sainsbury removed the product from their shelves, and leading wholesaler Booker recalled related products. In March, multiple products, including Lost Mary, Found Mary, IVG Bar, Klik Klak, SKE Crystal, Smok Mbar Pro, and Solo, were found to have e-liquid volumes exceeding the standard, according to a 50-page product testing report sent by BAT to wholesalers.

Comment:

The UK, known as one of the most vaping-friendly markets globally and the second-largest market globally after the United States, witnessed a profound impact from the "e-liquid overdose" incident. The regulation of disposable e-cigarettes became a frequent topic, escalating to issues such as protecting minors and environmental conservation. The UK government conducted a public consultation on disposable e-cigarettes at the end of the year.

2. Several Chinese E-cigarette Companies Listed on FDA "Import Alert" List

On May 17, 2023, the U.S. Food and Drug Administration (FDA) issued an "Import Alert 98-06" for several Chinese e-cigarette companies, stating that the FDA would detain shipments of "new tobacco products not tested without market authorization." The affected companies included importers, manufacturers, and transporters of e-cigarette brands such as ELFBAR, EBDESIGN, and Esco Bar.

Comment:

The United States is the world's largest e-cigarette market and a global trendsetter. The FDA, as the primary regulatory authority for e-cigarettes in the United States, drew attention globally with its actions. The "Import Alert" for leading e-cigarette brands and the ongoing checks and law enforcement against distributors and channel partners by Customs and Border Protection (CBP) and other agencies marked the advent of a stricter era of enforcement by the U.S. government. The focus on leading disposable e-cigarette brand ELFBAR also contributed to shifts in the market landscape.

3. Russian State Duma Passes Comprehensive E-cigarette Legislation

On April 11, 2023, the Russian State Duma voted on e-cigarette regulation legislation, including prohibiting the use of flavorings and additives in the production and sale of nicotine-containing products to "reduce attractiveness to minors." The legislation also banned the retail of "devices used for consuming nicotine-containing products" and their components at markets, trade shows, through remote sales, vending machines, and via delivery and door-to-door sales.

Comment:

Russia is the fourth-largest market globally and one of the most prominent emerging markets. Its vast market size and previously lenient regulations attracted the attention of numerous brands, leading to the world's largest "gray market." In 2023, the Russian State Duma's comprehensive legislation on e-cigarettes and the implementation of "honest labeling" signaled the arrival of an era of regulatory compliance in the Russian e-cigarette market. Although the final implementation of regulations is still some time away, there is a noticeable increase in the proportion of white-label products in the Russian market, indicating a positive transformation in market order. The implementation of policies such as licensing systems and flavor additive lists in 2024 will further consolidate the Russian market's compliance.

4. WHO Urges Countries to Treat E-cigarettes Equally with Traditional Tobacco and Ban Flavors

On December 14, 2323, the World Health Organization (WHO) released a document calling on governments worldwide to treat e-cigarettes the same as traditional tobacco. It urged the ban of all flavors, stating that there is insufficient evidence to confirm that e-cigarettes help smokers quit, emphasizing their potential health hazards, particularly nicotine addiction in non-smokers, especially children and adolescents.

Comment:

The World Health Organization's Framework Convention on Tobacco Control (WHO FCTC) serves as the "compass" for global tobacco policies. Its stance on new tobacco products may directly influence global government attitudes towards e-cigarettes. Regions such as the United States, the United Kingdom, and the European Union, which previously had lenient regulations on e-cigarettes, primarily considering their smoking cessation effects, are now faced with a change in the definition of e-cigarettes compared to traditional cigarettes. The WHO's position will have a significant impact on the introduction and adjustment of regulatory policies in various countries.

5. French National Assembly Passes Law Banning Disposable E-cigarettes

On December 4, the French National Assembly unanimously passed a law banning disposable e-cigarettes. The law will be submitted to the French Senate and requires approval from the European Commission. Earlier, French Health Minister Aurélien Rousseau stated that the government would strengthen tobacco taxation and bans to shape a "smoke-free generation" by raising prices to reduce the affordability of cigarettes by 2032.

Comment:

The popularity of disposable products has driven the rapid growth of the global e-cigarette market in the last three years. However, environmental concerns related to disposable products have gradually attracted the attention of governments worldwide. France became the first European country to make a clear regulatory statement on disposable e-cigarettes, and its attitude toward e-cigarettes, as one of the leading EU markets, is representative and influential.

6. BAT Intends to Acquire ELFBAR from iMiracle but Faces Rejection

On March 21, 2023, it was revealed to two sources that British American Tobacco (BAT) representatives had held multiple meetings with iMiracle to understand its production and market-related information. In September, BAT executives proposed acquiring the ELFBAR brand. Subsequently, BAT and iMiracle held multiple detailed acquisition discussions until December 12, 2022, when iMiracle replied to BAT by email, clearly stating that iMiracle had no intention of selling ELFBAR.

Comment:

ELFBAR, owned by iMiracle, is a globally renowned disposable e-cigarette brand that holds a leading position in markets such as the United States and the United Kingdom. As one of the world's largest tobacco companies, BAT has mature experience in capital acquisitions during its global operations. The news of BAT's potential acquisition of ELFBAR indicates that the competition in the e-cigarette market has reached new heights, with major companies considering capital means to establish an oligopoly. Additionally, ELFBAR, starting from disposable e-cigarette products, has grown in just over three years to a level where it can compete with established tobacco company BAT in the e-cigarette sector, demonstrating the tremendous potential of the e-cigarette market.

7. State Tobacco Monopoly Administration Office Issues Guidelines for Exported E-cigarettes

On July 18, 2023, the State Tobacco Monopoly Administration formulated the "Guidelines for Promoting the Construction of Quality Assurance Systems for Exported E-cigarettes." The guidelines specify that companies are the main entities responsible for the construction of quality assurance management systems for exported e-cigarettes, outline the main content of the construction of quality assurance management systems for exported e-cigarettes, and provide specific requirements for the construction of quality assurance management systems for exported e-cigarettes.

Comment:

The introduction of China's "Guidelines for Promoting the Construction of Quality Assurance Systems for Exported E-cigarettes" is an important document released after e-cigarettes were included in the special tobacco sales license management in the Chinese market. From a regulatory perspective, the document proposes requirements for the quality and supervision measures for exported products. China is the primary location for the global e-cigarette supply chain, with over 90% of e-cigarette product manufacturing taking place in the country. This new regulatory measure by China's State Tobacco Monopoly Administration has significant implications for enhancing the global quality of e-cigarette products and combating illegal trade.

8. China Tobacco International (HK) Showcases Chinese-style HNB Products at International Tobacco Exhibition

From September 14 to 16, 2023, China Tobacco International (Hong Kong) Co., Ltd. showcased multiple Chinese-style heat-not-burn products. This event marked the first time since China Tobacco Hong Kong's listing in 2019 that it led 11 industrial enterprises under China Tobacco, presenting more than 100 varieties of heat-not-burn tobacco products from 16 brands at an international tobacco exhibition.

Comment:

China Tobacco is the world's largest tobacco enterprise, and China Tobacco Hong Kong is the sole export agent for China Tobacco's new tobacco products. Its actions in the field of new tobacco are closely watched by industry professionals worldwide. This event, where China Tobacco Hong Kong collaborated with multiple China Tobacco subsidiary companies, showcased various brands of heated tobacco products. It not only demonstrated the maturity of Chinese-style heated cigarettes after years of research and development but also reflected China Tobacco's determination and confidence in high-quality expansion into the field of new tobacco.

9. Smoore Unveils FEELM 2.0 Technology Featuring Thousand-Puff Within 2 mL

On November 10, 2023, Smoore officially announced FEELM 2.0, a 2ml compliant disposable thousand-puff technology. According to a report by testing agency Inter Scientific, the aerosol liquid utilization rate of FEELM 2.0 reaches 77%, resulting in over a thousand puffs.

Comment:

As one of the world's largest electronic cigarette manufacturers, Smoore did not seize the opportunity in the current wave of disposable products. The launch of FEELM 2.0 can be seen as a new solution proposed by Smoore in the disposable field, focusing on "compliance + technology." With the expectation that e-liquid limits will not change in the UK and the EU for the time being, Smoore's technology provides a new opportunity for the compliance of disposable products. This attempt also offers a new insight for the industry, suggesting that future innovation can continue in several key areas, such as vaporization heating technology that better caters to the audience, more intelligent devices, and safer battery technology.

10. China's Supply Chain Dominance Challenged by Indonesia Contributing 35% of U.S. Imported E-cigarettes?

In June 2023, data from the U.S. Trade Commission showed that in the first half of the year, 63.7% of e-cigarettes imported by the U.S. came from China, while e-cigarettes imported from Indonesia accounted for over 35%. Indonesia has become the second-largest e-cigarette exporter to the U.S., following China. The import tariff for e-cigarette kits from Indonesia to the U.S. is only 2.6%. In recent years, major tobacco companies such as Smoore, Jinjia Shares, Fimo International, KT&G, etc., have entered Southeast Asian countries to establish factories.

Comment:

E-cigarettes were invented in China, and their production is mainly dependent on China. However, in the last three years, factors such as regulation and international trade have led some e-cigarette companies to start setting up manufacturing plants in Southeast Asia. Currently, China remains the largest manufacturing base for e-cigarettes, but the trend of production migrating overseas is noteworthy.

2FIRSTS has been releasing its annual list series, and upcoming lists include "2023 Global Vaporization Enterprise ESG Cases," "2023 Global E-cigarette Exhibition List," and "2023 Most Innovative Technology and Product List." Stay tuned for more updates.