Philippines’ Vape Market Faces a Shakeup: From Skyrocketing Sales to Stricter Regulations

The Philippines, home to a massive 18 million smokers, holds the second-largest tobacco market in Southeast Asia. With such a huge smoking population, it’s no surprise that the country has been a prime target for the booming global e-cigarette industry. But in 2024, this vape haven has seen both rapid growth and unexpected turbulence. Let’s dive into the twists and turns shaping the Filipino vaping landscape.

The Rise and Fall: Vape Sales in 2024

If you thought the Philippine vape market was all smooth sailing, think again. While 2023 saw China exporting a jaw-dropping $200 million worth of vape products to the Philippines (with explosive monthly growth rates as high as 56%), the market’s glow dimmed by November, with sales dropping from $11.28 million to $8.84 million.

What’s going on? Industry insiders point to a mix of stricter regulations, growing competition, and the government tightening its grip on compliance. The message is clear: adapt or risk being left behind.

Who’s Winning the Vape Race?

In 2023, while the U.S. remained China’s biggest e-cigarette customer with exports totaling $3.1 billion, the Philippines stood out as one of the fastest-growing markets. Brands like GEEKBAR, SMOK, LOST MARY, and RELX rushed to capture a slice of this exciting market. But the race hasn’t been easy—competition is fierce, and regulations are becoming tougher by the day.

The Regulation Rollercoaster

The Philippine government isn’t holding back. In 2024, the Department of Trade and Industry (DTI) rolled out new rules requiring all vape products—whether locally made or imported—to undergo certification. Starting in June, only products with the Philippine Standards (PS) mark and Import Commodity Clearance (ICC) label can legally hit the shelves.

But that’s not all. A transitional grace period runs until January 2025, giving companies a chance to clear out non-compliant stock. After that, the gloves come off—any uncertified products will be confiscated, banned, or worse, lead to companies facing penalties.

DTI has even hinted at further tightening its technical regulations, signaling that companies need to double down on compliance if they want to stay in the game.

A Market of Opportunities and Caution

Despite the challenges, the Filipino vape market remains one of the world’s fastest-growing. The demand for alternatives to traditional tobacco is still strong, fueled by both consumer interest and the government’s relatively welcoming attitude toward innovative tobacco products.

For example, the DTI has encouraged tobacco companies to locally produce heated tobacco products (HTPs), reflecting its openness to next-gen solutions. But it’s a delicate balancing act—the government is simultaneously pushing for better product safety and stricter oversight.

Brands Under Fire: The Crackdown

2024 has been a wake-up call for vape brands operating in the Philippines. The government suspended several big names this year for compliance violations, including:

• September: Shft & Dr Freeze, Aerogin & Don Bars, Chillax, and Lost Mary faced bans.
• October: Nixx, Demon Vape, and Steep N Drip lost their PS licenses.
• November: While Aerogin and RELX saw bans lifted, the heat is still on for others.

The crackdown is a reminder for brands to reevaluate their strategies and ensure their products meet Philippine standards.

What’s Next?

The Philippine vape market is at a crossroads. On one hand, the massive smoking population presents undeniable opportunities for growth. On the other hand, increasingly stringent regulations mean only the most agile and compliant players will survive.

For industry players, success will require more than just flashy branding. Companies will need to innovate, adapt to evolving consumer preferences, and stay ahead of regulatory changes. For investors, the market offers great potential—but only with careful navigation of the risks.

As the Philippine vape industry continues to evolve, one thing is certain: the eyes of the global e-cigarette market are firmly fixed on this dynamic and unpredictable market. Whether it’s the rise of new brands, stricter government rules, or shifting consumer trends, the story of vaping in the Philippines is far from over.