The numbers are in! On January 20, 2025, China’s General Administration of Customs released data for e-cigarette exports in December 2024, rounding off the full-year export report. Despite some challenges, the numbers highlight the resilience and complexity of China’s e-cigarette industry as it continues to navigate the global market.
In December 2024, China exported $1.011 billion worth of e-cigarette products, showing an 8.8% rise from the previous month but a 7.95% drop compared to December 2023. For the full year, exports totaled $10.961 billion (approximately 80.2 billion RMB), a slight 1.11% decrease from 2023’s $11.084 billion.
Where are these products going? Unsurprisingly, China’s top export markets were the U.S., U.K., South Korea, Germany, and Japan, along with emerging markets like Malaysia and the UAE. Together, these ten countries accounted for 76.56% of China’s total e-cigarette exports in 2024.
China’s E-Cigarette Export Data (2024)
| Metric | Value | Change |
|---|---|---|
| December 2024 Exports | $1.011 billion | +8.8% (MoM), -7.95% (YoY) |
| Full Year 2024 Exports | $10.961 billion | -1.11% (YoY) |
| 2023 Full-Year Exports | $11.084 billion | — |
| Top 10 Market Exports | $8.392 billion (76.56%) | — |
Survival Through Export: A Tough But Necessary Journey
For most Chinese e-cigarette companies, the mantra of “go global or go home” has never been more relevant. The global market offers both opportunity and adversity, and companies face tough decisions about how to grow, survive, and thrive.
Looking back at 2024, the industry grappled with three major dilemmas: whether to prioritize low prices or brand value, adopt “light” or “heavy” overseas models, and focus on emerging or developed markets. These aren’t just black-and-white choices but ongoing balancing acts in a highly competitive and unpredictable environment.
Market Trends: Regional Dynamics and Emerging Opportunities
In 2024, China’s e-cigarette export landscape highlighted significant regional differentiation. The U.S. continued to dominate, accounting for over 36% of total exports, further solidifying its position as the top market.
In Europe, the U.K. maintained its stability, while Germany emerged as the EU’s largest e-cigarette importer, with impressive growth. At the same time, emerging markets like Japan and the UAE showed strong potential, with rising consumer demand driving their expansion.
However, not all markets were smooth sailing. Regions such as Southeast Asia (e.g., Malaysia) and Russia experienced policy and economic instability, which impacted their overall growth trajectories.
Top 10 Export Destinations (2024)
| Rank | Country | Remarks |
|---|---|---|
| 1 | United States | Largest export destination |
| 2 | United Kingdom | Significant market share |
| 3 | South Korea | Growing consumer base |
| 4 | Germany | Strong demand for premium products |
| 5 | Russia | Emerging market with steady growth |
| 6 | Netherlands | Established trade network |
| 7 | Malaysia | Rapidly developing e-cigarette market |
| 8 | Canada | High purchasing power and stable demand |
| 9 | UAE | Middle Eastern hub for e-cigarette imports |
| 10 | Japan | High preference for innovative technologies |
Low Prices or Strong Brands? The Great Trade-Off
In a world still recovering from economic challenges, price remains king for many consumers. Low prices help companies break into markets, but they can sacrifice profit margins and long-term growth. On the other hand, building a strong brand—while more expensive and time-consuming—offers the promise of loyalty, emotional connection, and higher profit margins over time.
In recent years, more Chinese e-cigarette companies have realized the power of branding. Brands that resonate emotionally with consumers, offer high-quality products, and create unique experiences often outshine those competing solely on price. Even in highly competitive markets, branding has allowed some companies to successfully expand product lines and gain consumer trust.
That said, not every company is ready to dive into branding on day one. For smaller manufacturers, entering the market with competitive pricing and growing sales volume is often a practical first step. Over time, as they establish themselves, these companies can pivot to focus on brand-building.
Ultimately, while price might open the door, branding is what ensures companies stay in the game.
To Go “Light” or “Heavy” Abroad?
Exporting e-cigarettes comes with two common strategies. The first is the “light” approach—partnering with local distributors to handle sales, marketing, and logistics while the Chinese company focuses on production. This model is fast, simple, and cost-effective but increasingly less viable as global markets become more competitive and regulated.
The alternative is the “heavy” approach—investing directly in local operations. This means setting up local teams for R&D, product design, marketing, and logistics to fully integrate into the market. While this model requires more resources, it offers better control over branding, customer experience, and regulatory compliance.
Neither approach is a guaranteed winner. In 2025, companies must carefully assess their resources, target markets, and risk factors to strike the right balance. The future likely lies in blending both strategies—leveraging the light model in some markets while going heavy in others to maximize adaptability and growth.
ight vs. Heavy Model for Overseas Expansion
| Model | Advantages | Disadvantages |
|---|---|---|
| Light | Low cost, faster market entry, simpler setup | Limited control, less effective in competitive or regulated markets |
| Heavy | Greater control, stronger brand presence, better local adaptation | High cost, resource-intensive setup |
Dilemmas in Global Expansion
| Key Challenge | Details |
|---|---|
| Low Prices vs. Branding | Low prices help market entry but sacrifice profits, while branding builds loyalty and trust. |
| Light vs. Heavy Models | Light model relies on trade partners, while the heavy model focuses on localized operations. |
| Emerging vs. Developed Markets | Emerging markets grow fast but are price-sensitive, while developed markets demand premium products. |
Emerging Markets vs. Developed Markets: Where to Go?
This question has no easy answer. Emerging markets, such as parts of Asia, the Middle East, and Africa, offer rapid growth potential and relatively relaxed regulations. However, they also bring challenges like limited consumer spending power and higher sensitivity to price fluctuations.
Developed markets like the U.S., Europe, and Japan, on the other hand, are stable, mature, and have consumers willing to pay for premium products. These markets favor high-quality and innovative offerings, but competition is fierce, and regulatory hurdles are significant.
The safest strategy for 2025 may be diversification—targeting a mix of emerging and developed markets to spread risk and maximize opportunity. Betting too heavily on a single region could leave companies vulnerable to sudden policy changes or economic shifts.
Emerging vs. Developed Markets
| Market Type | Benefits | Challenges |
|---|---|---|
| Emerging Markets | High growth potential, relaxed regulations | Price sensitivity, limited consumer spending power |
| Developed Markets | Stable demand, high consumer purchasing power | Intense competition, complex regulatory environments |
Breaking Through in 2025: Resilience and Action
As the global e-cigarette industry enters 2025, the path forward is anything but straightforward. Companies face tougher regulations, shifting market dynamics, and growing consumer expectations. Yet, those willing to adapt, innovate, and take bold steps will find opportunities even in uncertainty.
There’s no one-size-fits-all solution. Success will come to those who stay flexible, focus on quality and branding, and carefully navigate the complexities of global markets. For Chinese e-cigarette companies, the challenge is clear: staying true to their goals while continuously evolving to meet the demands of an ever-changing world.
