Vaping Becomes a Hot Investment Sector Abroad as China's Tech Impresses

Heated Tobacco News Network reports: At the end of 2013, a series of negative developments emerged in Europe, the United States, and other markets. This impacted orders for some vaping manufacturers, causing order volumes in the fourth quarter of 2013 to decline by 30% to 50% quarter-on-quarter. However, after the Lunar New Year, several overseas acquisitions brought the vaping market back to life. Industry insiders believe the vaping sector could become a new investment hotspot, with foreign investors showing strong confidence in the market.

“Large overseas acquisitions in the vaping sector are positive news for China. International leading companies will drive the entire industry forward,” analysts said.   Public information shows that on February 3, Altria Group, the world's largest cigarette manufacturer and owner of the Marlboro brand, announced it would acquire vaping manufacturer Green Smoke for US$110 million. The WSJ believes this marks vaping's entry into the mainstream and an increasingly serious threat to traditional tobacco manufacturers.   Mr. Zhao of Kangcheng Yipin, a major vaping company and member of a domestic tobacco control association, said that China's vaping manufacturing technology is relatively mature, its supply chain is more complete, and it also has cost advantages. As overseas industry leaders continue expanding their markets, more orders will be filled by Chinese manufacturing.   It is understood that China is a major manufacturing country for vaping products, with most of the world's manufacturers concentrated in China. About 95% of China's output is exported. Market research institutions estimate that Europe and the United States are the main markets for vaping products. Global demand reached 220 million units in 2012, 450 million in 2013, and is expected to reach 740 million in 2014, with sales doubling year by year. In the United States alone, sales in 2013 were expected to reach US$1.1 billion.

As domestic anti-smoking laws are gradually improved, the potential of vaping is beginning to emerge. At the same time, China's vaping market is large and still new. At this stage, the goal of domestic vaping manufacturers is to grow the market together, help more Chinese smokers understand vaping and use vaping products, and let people know that compared with traditional cigarettes, vaping is healthier, more environmentally friendly, and more reliable.