Weekly Report on the Global Electronic Cigarette Industry (2022.9 Week 2)

Domestic News

• BYD Co., Ltd. revealed a new patent on September 6: "a nickel-based paste for electronic atomization core and its manufacturing technique, atomization core, electronic cigarette, and application." According to BYD, the method can resolve the issue that the present atomization core in the conductive coating does not form a strong link to the substrate and that the usage process is prone to failure. 

• On September 13,  licensed shop owners in China will be allowed to use the Chinese unified e-cigarette trade management platform to place pilot orders of standard items and test the system, the procedure, and the national standard products in advance. 

• After the earthquake in Sichuan, the head of the Electronic Cigarette Special Committee, Yao Jide of Hengxin Technology Co., was extremely concerned about the tragedy.The committee sent an initiative to all of its members, urging them to make voluntary contributions, within their means and according to their own circumstances, to help the earthquake victims in Sichuan, such as Luding and Ya'an. By the afternoon of September 9, 104 member firms (including individuals) had contributed a total of RMB 4,517,000 to the victims of the earthquake in Luding, Sichuan. 

• The German Tobacco Show will be held in Dortmund from September 15 to September 17 this year. Jason, the diplomatic assistant of the Electronic Cigarette Council of China (ECCCC) and public relations manager of 2 firsts, led the "ECC International Joint Exhibition Delegation" to Germany in order to make a magnificent appearance of Chinese e-cigarette enterprises at the worldwide exhibition. The "ECCCC International Delegation" has landed safely at Dortmund Airport at 22:00 local time on the 11th.

International Market

• United States of America 

16% of Americans have smoked marijuana, and 11% are current smokers, according to a Gallup (US) poll. The number of marijuana users in the United States has surpassed the number of smokers for the first time. 

The 'Worldwide E-Cigarette Industry Overview' research is published by Report-linker New York. According to the analysis, the global e-cigarette market will be valued $57.02 billion in 2021, with Europe holding the largest market share. 

• United Kingdom

Histimes UK study finds that the number of underage females using e-cigarettes in the UK has increased by 21% in the last three years.

• Ireland 

Ireland's Institute of Against Tobacco Use reports that 39% of 16- to 17-year-olds have tried e-cigarettes, while 68% of the same age group have never tried traditional tobacco. 

• Brazil 

The Brazilian Tobacco Growers Association (Afubra) has released data indicating that in 2021-2022, tobacco production in southern Brazil will be 560,18 million kilograms, 10.9% less than in the previous growing season. 

International Regulation

United States

• The results of a study done by NiceRX, a research center in the United States, on the ranking of smoking rates and the number of smoking-related fatalities by state in the United States are presented in the table below. West Virginia has the nation's highest smoking rate and largest number of smoking-related fatalities.

• Any NTN (synthetic nicotine) product that has not obtained FDA premarket approval will be prohibited after July 13, 2022. Currently, the FDA has issued Denial of Acceptance Letters (RTAs) for over 800,000 NTN items that do not comply with regulations. In addition, the FDA has accepted over 350 applications for NTN products, the great majority of them are for e-cigarettes. 
• Dayton became the second city in Northern Kentucky and the first city in Campbell County to enact a smoking ban. The prohibition outlaws smoking (including electronic cigarettes) in all city restaurants and structures. Those who violate the regulation will be fined $250. 

United Kingdom 

• The Scottish Highland Council said on September 6 that it has confiscated more than 3,000 unlawful e-cigarette goods over the last year. The Scottish department of Trading Standards issued numerous penalty warnings with £200 penalties apiece. Three stores in Scotland were prohibited from selling electronic cigarettes. 
• A poll of over 10,000 British schoolchildren aged 11 to 15 conducted by the NHS (National Health Service) on September 7 revealed that 9 percent of those asked use e-cigarettes, the highest percentage since the survey's inception in 2014. 

Brazil 

• On September 6, the Brazilian Ministry of Justice ordered 32 stores to cease selling e-cigarettes, or risk fines of 5,000 Brazilian reais (about $970) every day. 

South Korea 

• The joint enforcement team of South Korea evaluated over 20,000 nationally designated smoke-free zones for infractions and warning signs. The inspection period lasted from August 26 to October. 

Bangladesh 

• About 58 percent of all tobacco users in Bangladesh use smokeless tobacco products, or over 22 million individuals. The packaging of new smokeless tobacco products must be standardized, according to Bangladeshi health experts, and 84 percent of smokeless tobacco products in Bangladesh lack health warning images.

Company News

The Philip Morris Company (PMI) 

• PMI Japan will begin selling IQOS ILUMA series devices and "TEREA" cartridges in IQOS shops, convenience stores, and tobacco specialty stores beginning on August 17. A pack of twenty cartridges costs 580 yen. 
• Reuters reported that, according to a document issued by the European Commission on September 6, the European antitrust agency will finish its examination of Filmore International's $16.1 billion acquisition of Swedish Match by October 11. 

British American Cigarette (BAT) 

• British American Tobacco Japan (BAT Japan) has introduced two new "glo hyper" special cartridges: "Kent Neo Stick True Rich Clear" and "Kent Neo Stick True Rich Green." The two new goods will be available nationally beginning on August 29 for 500 yen (about $3.50). 
• BAT has spent £1.1 billion in new goods over the past six months, according to BAT CFO Tadeu Marroco; BAT is projected to save a total of £1 billion by the end of 2022, from 2020 until the adoption of a cost-cutting strategy. 
• BAT will co-brand with Backyard Builder, release limited edition co-branded peripherals, and host a raffle with a grand prize of 1.5 million won. The glo pro slim skin edition, designed by BAT in partnership with Backyard Builder, will be available for a limited time of four weeks beginning on September 5 at the Glo online store. 
• BAT's RJ Reynolds Vapor's popular Vuse range of electronic cigarettes was sued for infringing three OCHA Group patents and a U.S. patent. Reynolds Vapor was sentenced by a North Carolina court to pay OCHA over $95 million in damages. 

Japan Cigarette (JT) 

• On September 2, Japan Tobacco (JT) debuted "Mobius Option Red," a new flavor of the HNB brand "Ploom X," for 570 yen (about $4). 
• JT has developed a new heater for the "Ploom X" heated cigarette device, which is adorned with an original red pattern, in collaboration with Yosuke Aizawa, the renowned designer of the fashion brand "White Mountaineering." 

Juul 

• Juul agreed to pay $438.5 million in settlements with 33 states, including Connecticut and Puerto Rico, to end over-marketing activities, such as selling its products to minors and using actors under the age of 35 in advertisements. The states have said that they will utilize the reimbursement for anti-smoking education for adolescents. 

KT&G 

• Last year, KT&G sold 3.79 million units of their HNB product "Lil" in Korea and internationally. In the second quarter of 2022, KT&G stood first among Korean tobacco businesses with 47% of the HNB market share in Korea.