Canadian market looks set to grow under federal regulation

Canada’s Tobacco and Vaping Products Act (TVPA) received royal assent in May 2018, providing a clear federal-level legal framework for vapour products for the first time.

In 2018, open system products dominate, with approximately 85% of the market. However, as closed type pod kits recently became available, we expect closed systems’ market share to increase.

Most sales (75%) come through the offline channel (mainly through vape stores). We believe there are over 1000 vape stores in Canada; the largest concentration is found in Quebec and Ontario.

We believe that since the passing of the TVPA, more mainstream retail outlets will start to carry e-cigarette products.

Vapour products are between 10% and 20% cheaper in the US than in Canada.

The heated tobacco products IQOS and i-Glo are distributed online, in traditional retail, branded stores and by direct sale. The hybrid device Ploom Tech can also be found in traditional retail and online.


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