Smoore International, known globally as a leading innovator in vaporization technology and the manufacturer of Vaporesso, has emerged as one of the most remarkable success stories in 2024. Despite the challenges faced by the electronic cigarette industry, particularly within China, Smoore has demonstrated its resilience and strategic foresight. The company has not only weathered the storm of regulatory changes but has also positioned itself for sustained growth in 2025. Here’s an analysis of why Smoore has been so successful in 2024 and why its trajectory points towards continued success in 2025.
1. Strategic Shift Away from Domestic Dependency
The Chinese market for electronic cigarettes has undergone significant regulatory tightening in recent years. Policies such as the prohibition of flavored e-cigarettes and the imposition of supply quotas have drastically shrunk domestic demand. Recognizing these challenges, Smoore took decisive action to reduce its dependency on the Chinese market. By 2024, its domestic revenue accounted for a mere 1.5% of its total income, effectively insulating the company from the constraints of the local market.
This strategic pivot allowed Smoore to focus on expanding its presence in international markets, where regulatory environments are more favorable and growth potential remains high. The company’s ability to adapt swiftly and reallocate resources to overseas markets underscores its agility and long-term vision.
2. Capitalizing on International Market Trends
A. Regulatory Shifts Favoring Growth
In 2024, global electronic cigarette market trends shifted significantly. In the United States and Europe, there has been a relaxation in the regulation of flavored e-cigarettes. Notably, the approval of flavored products by Smoore’s client, Juul, has signaled a potential easing of restrictions, opening up opportunities for market growth. Additionally, former U.S. President Donald Trump’s support for flavored e-cigarettes has fueled optimism about further regulatory relaxation in the coming years.
B. Product Upgrades Driving Market Expansion
The European Union’s ban on low-quality, low-margin disposable e-cigarettes has led to a market shift towards higher-value, reusable, and environmentally friendly products. This transition aligns perfectly with Smoore’s expertise in high-quality vaporization technology. By focusing on premium products that meet stricter environmental and health standards, Smoore has positioned itself to benefit from this structural shift in consumer preferences.
3. Innovation in Products: The Glo Hilo Advantage
One of Smoore’s most significant achievements in 2024 has been its collaboration with British American Tobacco (BAT) to develop the Glo Hilo, a next-generation heat-not-burn (HNB) device. Glo Hilo represents a major step forward in electronic cigarette technology, offering superior performance and user experience compared to existing products like Philip Morris’ IQOS.
Why Glo Hilo Stands Out:
- Faster Preheating: Glo Hilo’s preheating time is approximately 2 seconds, compared to IQOS’s 5 seconds, providing a seamless user experience.
- Better Heating Efficiency: The device ensures even and thorough heating of the tobacco, delivering consistent flavor and minimizing waste.
As the exclusive manufacturing partner for Glo Hilo, Smoore is well-positioned to capitalize on the growing demand for high-quality HNB products. This partnership not only boosts Smoore’s revenue but also strengthens its reputation as a leader in cutting-edge vaporization technology.
4. Aligning Leadership Incentives with Shareholder Value
Smoore’s recent revision of its stock incentive plan ties executive rewards directly to the company’s market capitalization. Between 2025 and 2030, the company’s founder will unlock equity incentives only if Smoore’s market value reaches specific milestones: HKD 300 billion, HKD 400 billion, and HKD 500 billion. This structure ensures that the leadership remains fully aligned with the interests of shareholders, fostering a culture of accountability and growth-oriented decision-making.
This ambitious goal—to become one of the top four tobacco companies in the world—reflects Smoore’s confidence in its growth potential. Achieving such a valuation would place Smoore alongside global giants, solidifying its status as a dominant force in the industry.
5. Building a Resilient Competitive Edge
While electronic cigarette technology may not have the high barriers to entry seen in industries like semiconductors, Smoore has leveraged its intellectual property portfolio to maintain a competitive advantage. The company holds a significant number of patents, ensuring it remains a leader in innovation and product differentiation. However, as evidenced by Glo Hilo’s ability to surpass IQOS in performance, Smoore’s true strength lies in its commitment to continuous improvement and technological advancement.
Smoore product types
| Type | Key Features |
| Disposable | Non-reusable, compact, high convenience |
| Pod (Vaporesso) | Reusable with replaceable pods, user-friendly |
| Refillable | Refillable e-liquid, flexible but complicated |
| HNB | Closest to real tobacco, healthier alternative |
6. Outlook for 2025 and Beyond
With its strategic focus on international markets, innovative product portfolio, and leadership incentivization, Smoore is well-positioned for sustained growth in 2025. Key factors driving its future success include:
- Expansion of Flavored E-Cigarette Markets: If regulatory trends continue to favor flavored products, Smoore stands to benefit significantly.
- Growth of HNB Products: The superior performance of Glo Hilo and its growing market share will drive revenue and profitability.
- Environmental and Health Standards: The global push for sustainable and health-conscious products aligns with Smoore’s strengths in premium vaporization technology.
By staying ahead of industry trends and maintaining its focus on quality and innovation, Smoore has not only survived the challenges of the past but has positioned itself as a global leader in the electronic cigarette industry.
