Looming threat for China’s vape industry


China’s e-cigarette industry at mercy of sceptical government

Beijing’s attitude could make or break growing vape sector in China

Tougher official action on e-cigarettes could hit China’s growing e-cigarette market in the near future.

A major new ECigIntelligence report suggests that the past laissez-faire attitude of Beijing is unlikely to return, and that this will have direct consequences for businesses operating in China.

One possible scenario is that the government may allow private companies to continue operations, but under close observation to ensure their products do not target non-smokers or minors.

The government could also decide to crack down on the e-cig market, which as the report explains would have a significant negative impact on the growth in sales of tobacco-alternative products in the country.

A third scenario would involve the China National Tobacco Company (CNTC) extending its existing control over traditional cigarettes to vaping products.

In theory at least, the CNTC – commonly known as China Tobacco – already has a monopoly on e-cigarettes, just as it has on conventional cigarettes. The question is whether it will choose to exercise that monopoly.

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    “Our report outlines the belief that e-cigarettes represent a potential existential threat to China Tobacco because of the risk that they could undermine its core market,” said ECigIntelligence editorial director Barnaby Page. “And that could prompt it to take action.”

    ECigIntelligence estimates that there are currently 930,000 daily users of e-cigarettes in China. Though the adult vaping population has not grown significantly over recent years, we believe the value of the market has increased substantially and will continue to do so.


    About ECigIntelligence:

    ECigIntelligence (www.ECigIntelligence.com) is the leading provider of detailed global market and regulatory news, analysis, legal tracking, and quantitative data for the e-cigarette sector worldwide. Customised research and consultancy are also available.

    We also publish CBD-Intel (www.CBD-Intel.comfor the global CBD sector, and TobaccoIntelligence (www.TobaccoIntelligence.com), which covers the global tobacco and nicotine alternatives sector, including heated tobacco (heat-not-burn) and snus. 

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