One day the pneumonia will pass, but the smokers will not necessarily disappear.
In 2018, according to the national adult tobacco survey report, there are about 320 million smokers in China, accounting for about one-third of the world’s smokers. Among them, the smoking rate of men over 15 years old in China is 52.1%. Compared with the survey five years ago, the number of smokers has increased by about 15 million. According to a report jointly issued by the World Health Organization and the United Nations Development Programme, traditional cigarettes are the main cause of more than 1 million people dying from smoking-related diseases in China every year, which brings a very broad market development prospect for e-cigarettes as a substitute of traditional cigarettes.
Although tobacco control has become an important policy goal of major national government health departments and international organizations, the main consumer groups of tobacco have the trend of growing younger, so it can be seen that there will be an endless stream of potential consumers in the future. However, the younger consumers also means that the future market consumer groups have a stronger demand for health products, and with the continuous increase of the ban on smoking in public places in mainstream countries, new tobacco products that meet the new policies and the health needs of customers are rising rapidly; low-temperature cigarettes, smoke-free tobacco products, e-cigarettes, and other markets are growing rapidly.
According to the data of the State Tobacco Monopoly Bureau, the business income of the cigarette industry in 2017 was 889.8 billion yuan. According to this calculation, China’s e-cigarette market only accounts for 0.27% of the tobacco industry. Compared with the penetration rate of European and American market, the market is still to be developed. It is estimated that the output of e-cigarettes will reach 3622 million in 2022. By the end of 2018, the national e-cigarette production was 2229 million cigarettes, an increase of 34% over 2017. In terms of market growth over the years, the compound growth rate of 2010-2018 is 52.8%, which is very fast.
Recommendations for new tobacco enterprises:
International supply chain: Evebattery (shareholding atomizing tobacco industry leader Smoore); Intretech (secondary supplier of IQOS precision parts); China supply chain: Jinjia Co., Ltd. (in cooperation with Yunnan Tobacco and Xiaomi Ecology) Chain cards are used for new tobacco main channels), Jiyou Co., Ltd. (new tobacco R & D and industrialization), Dongfeng Co., Ltd. (new tobacco products), Shunho Co(new tobacco raw materials is leading), Chinese flavors and fragrances (acquisition of international e-cigarette manufacturer Kimree).
Good news recently:
As we know now, the EVALI in the USA is not associated with nicotine vapes without vitamin E acetate additive, and the flavor ban cannot stand the scrutinize & torture of citizens, now is generally gone.
China coronavirus lung disease is not fatal at all – only a 3% death rate. It’s the irresponsible media who amplified the panic among public. These media pursuing traffic shamelessly should be punished. And China vape supply chain & brands will recover soon however prevalent the epidemic is.