Data: China Added 18,000 New Vape-Related Companies in 2020

According to data from the professional edition of Tianyancha, there are currently 35,000 companies in China whose company names or business scopes include “e-cigarettes” or “electronic atomizers,” and whose business status is listed as active, existing, moved in, or moved out. In terms of company type, 52% of these e-cigarette-related companies are limited liability companies, while 46% are sole proprietorships or self-employed businesses. In terms of registered capital, nearly 80% of e-cigarette-related companies have registered capital of less than RMB 2 million.

By industry distribution, nearly 90% of e-cigarette-related companies are concentrated in the wholesale and retail sectors. By geographic distribution, Guangdong has the largest number of e-cigarette-related companies, with more than 9,700, followed by Jiangsu with more than 4,000. Zhejiang and Shandong come next, each with more than 2,000 e-cigarette-related companies.

Data from the professional edition of Tianyancha also shows that the annual number of newly registered e-cigarette-related companies in China surged in 2020. A total of 18,000 related companies were added during the year (including companies of all statuses), representing a year-on-year increase of 270%. By quarter, the fourth quarter saw the largest increase, with 10,000 new e-cigarette-related companies added.

The 2020 China E-cigarette Industry Value Insight Report released by the Think Tank of The Beijing News pointed out that the emergence of e-cigarette products has promoted the rapid growth of companies across the industry chain, while also expanding the tobacco industry chain and helping build a healthier industry ecosystem. At the same time, it has jointly helped provide society with harm-reduction and safer e-cigarette products. By engaging in R&D, design, production, and sales, e-cigarette companies reduce carbon dioxide emissions and energy consumption, which has positive significance for China’s carbon neutrality goals and ecologically sustainable development.