South Korea proposes HnB tax almost equal to tobacco
23rd October 2017 - News analysis |
A new tax proposal for heat-not-burn (HnB) products in South Korea could leave them more expensive than their traditional cigarette counterparts.
A new tax proposal for heat-not-burn (HnB) products in South Korea could leave them more expensive than their traditional cigarette counterparts.
Nicotine e-cigs can only be sold legally in South Africa at pharmacies under medical licence. There is, however, a thriving black market, and a government promise – yet to be acted on – to regulate e-cigs in the same way as tobacco
Transposition of the TPD into Belgian law has been force since January 2017. The restrictions it imposes include a ban on online sales as well as product, packaging, labelling and advertising restrictions
ECigIntelligence’s updated review of Germany’s e-cigarette laws and regulations includes details of likely future tightening of restrictions.
The new trend of shake and vape is taking the French market by storm, with new brands appearing rapidly – particularly a wave of imports from the US and Malaysia
In our latest look at the Italian market, we find sales of e-liquids generate around 45% of revenue. Tobacco and fruits are reported as the most popular flavours, while the e-liquid sector appears dominated by Italian brands
Poland’s Bureau for Chemical Substances has published the first official list of all notified e-cigarette products, providing an insight into the product mix on the Polish market
A ruling by the UK’s Advertising Standards Authority calls into question the line between fact and promotion when it comes to the fonts used on websites
A major UK distributor of tobacco products, including e-cigarettes, is to be kept afloat through loans from JTI and Imperial as it seeks to finalise its own acquisition
Our survey of the vaping market in Israel finds little optimism among the cluster of small businesses operating in a country where smoking is on the rise again
In our latest look at the UK market, we find there are approximately 2.8m vapers, an increase of around 12% since 2015. Most are daily users, and there is a clear preference for open system products
The effects of taxation on Russia’s e-cig market are likely to include price rises, decreased production of e-liquids with nicotine by larger manufacturers, and growth of the black market
Our investigation of the Slovenian e-cigarette market finds a very small vaping population and a small number of vape stores bound by a highly restrictive regulatory regime
The UK is a highly competitive online market for e-cigarette products, which account for an estimated 30% of overall sales. In total, we estimate there are approximately 380 online retailers in the UK
The number of vapers in China appears to have doubled since 2016, while the value of the market has almost tripled in a year, according to research by ECigIntelligence
The EU’s Tobacco Product Directive (TPD) has not yet been fully adopted in Norway. It is anticipated that the sale and manufacture of nicotine containing e-cigarettes and e-liquids will be allowed in the first half of 2018. They are currently banned except for personal import. Online remains the main distribution channel, with foreign online companies having a significant presence.
The EU’s Tobacco Products Directive (TPD) was transposed in Finland the form of the Tobacco Act, which made Finland one of the EU’s most strictly regulated countries. Market growth of 40% throughout 2016–2017 was mainly determined by increased numbers of vapers (+16%), growth of the share of daily users (30% in 2017 compared with 14% in 2016), plus an overall price increase in most e-cigarette categories.
After a slump in 2014, the Italian e-cigarette market is on the up again with a large and growing number of vape stores operating around the country, dominated by three highly successful chains
in our latest look at the French market, we see that all the studied vape store chains are at least partially using a franchise business model. Our franchising conditions’ analysis revealed the Jwell chain has the most attractive franchise conditions, while Clopinette had the strictest. All the vape stores have an online retail presence; however, their focus is on their physical stores.
The market for heated tobacco products in Japan is very favourable due to comparatively light regulation – as opposed to e-cigarettes, which are subject to more controls
China’s domestic market has grown substantially during 2016 and the early part of 2017, with a major increase in the number of vape stores, and large growth in the major online sales platforms.
The UK bodies in charge of advertising regulatory code have put forward a yes/no consultation on proposals to loosen restrictions on e-cigarette health claims in advertisements.
Our research on Italian e-cig retailers has revealed that the region around Rome is Italy’s most developed vape store market, with more than four times as many vape stores per inhabitant than the lowest-density areas. There may be scope for growth in Milan and Naples, given these cities have around half the vape store density of Rome.
The vape store market is dominated by the leading vape store chains in the northeastern region. Elsewhere, stores are predominantly independently owned/branded. There is very little crossover between the online and vape store distribution channels.
Estonia, Latvia and Lithuania, collectively known as the Baltic states have a total population of around 6m and share common political traits, economies and history. In our latest report, we estimate the Baltic states’ e-cig market is currently worth around €15m, with 75,000 vapers. Open-system products dominate the market, with basic open systems being very popular. The online channel is more developed in Lithuania and Estonia. In Latvia, due the ban on online retail, most sales are offline.
Namibia has a small but slowly growing e-cigarette market – but there are fears in the southwest African republic that government intervention could put an end to the growth
Malaysian e-liquid manufacturers are looking at the European Union and other markets as regulatory uncertainty bites at home – but only the bigger players can afford the costs involved
Our latest in-depth look at the Danish e-cigarette sector finds a market that is growing despite a reduction in the overall vaping population, and where the beneficial effects of the European TPD are being felt
Very small market size but the future outlook is positive.
Highly fragmented in all respects.
There’s a small amount of vapers but numbers are expected to grow as product awareness increases.
After the fall of the market size due the e-liquid tax, it seems both companies and vapers have now adapted to the new regulation. As the market starts to grow again, we find advance modular systems have a high prevalence. With distance sales forbidden, Portugal stores have adapted the same strategy as companies in Belgium and Austria: the catalogue is online but there is no delivery.
A case brought in a US court, alleging that an e-liquid manufacturer infringed a number of well-known trademarks, may set a future limit on the use of childhood nostalgia in marketing vapour products to adults
Three vape store chains have emerged as the leading brands in Italy, growing by more than 10% in a year, and representing more than a third of all vape stores in the country
The small, so far unregulated Filipino e-cigarette market, dominated by small local players, could benefit from a crackdown on smoking in public – but it could also face a future challenge if vaping itself becomes regulated
The UK Advertising Standards Authority has provided further clarity on what is and is not permitted in print media e-cigarette advertising with a ruling against a magazine ad for a vape store
Our survey of the online e-cig market in France finds vape store chains, e-liquid manufacturers and general online retailers all trailing behind the leading specialist sites
ECigIntelligence visited 34 vape stores in Poland’s two largest cities, Warsaw and Krakow, to gauge the market and compare offline prices – and found a striking difference between the two.
The Bulgarian e-cig market is currently worth BGN78m ($47m in 2017), with 200,000 vapers. Almost one in 20 Bulgarians regularly uses e-cigarettes – nearly half because they can vape in places where smoking is banned. The online channel is undeveloped and most sales are offline. However, we believe there is scope for the market to develop further.
Relaxation of the FDA regulations may have eased one headache, but setting up a vape store in the US is still not a decision to take lightly, according to some of the biggest in the business
British American Tobacco (BAT) has launched its Glo device in South Korea, joining Philip Morris International (PMI)’s iQOS in what could be a lively market for heated tobacco products
ECigIntelligence estimates the Malaysian e-cig market to be worth 513.4m ringgit ($120m) in 2017, with 600,000 vapers. Regulatory uncertainly and a ban on e-cigarettes in some states makes the outlook for future growth pessimistic. This static market is focused on hobbyists and dominated by open system e-cigs, with most vapers using advanced mods with digital screens.
Avail Vapor is to manufacture and sell e-liquids for Charlie’s Chalk Dust, a partnership that could signal future policy for the company and perhaps the wider e-cigarette industry
Traffic to the major online e-cigarette retailers in the US has become more concentrated on just a few websites, revealing an apparent settling among the market leaders.
In this August 2017 look at the Czech Republic, we find that the relatively mild regulation of e-cigarettes is apparently fuelling further growth in the sector. The Czech e-cigarette market is also geared more towards open systems, with closed systems being mainly available offline. About half of all e-cigarette sales go through online channel.
A move by the US FDA to reduce the nicotine content in cigarettes to non-addictive levels could encourage Big Tobacco to put yet more effort into alternatives
Figures for product notifications to the Italian health ministry under European TPD regulations enable us to make some interesting observations on the country’s e-cigarette market
In our latest look at the Italian market, we find that online remains an important channel in2017, with a significant increase in traffic over 2016 reflecting increased e-cig usage during this period. The top 10 performers have stable ranking, while the rest sees fluctuation of ranking based on historical data. Italy’s leading online retailers have increased their traffic compared to the French marke,t but still have a less traffic than the UK market.
In this July 2017 report we find that the Serbian e-cigarette market is rather undeveloped, but along with the local industry we expect growth. Electronic cigarettes are only partially regulated, with an advertisement ban and excise duty on e-liquids both with and without nicotine. However, EU accession may bring about new regulation.
We identified 700 vape stores in Germany, but there could well be a further 300, once those without an online presence have been taken into account. This report is accurate representation of the distribution pattern, according to population size and square kilometres. Population size turned out to be the biggest determinant of the number of vape stores. We’ve also identified the five largest vape store chains in Germany, according to the number of points of sale.
Logic has eaten E-Lites as parent company JT creates one unified global brand; but is it the right decision to put all your e-cig eggs in one branding basket?
The FDA has launched a smartphone app intended to help retailers verify a customer’s age – but is it actually any use?
In our latest look at the vape stores of America, we find that while the number of vape stores saw 16% growthin 2016, in 2017 this growth slowed to 3%. Previously the South had driven the growth in the number of stores, but in 2017 we find it is now the Western region with California providing 31% of additional stores.
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