E-Cigarette Market: High Technical Barriers, Huge Potential

According to the Heating Not Burning Information Network, although e-cigarettes have been on the market since 2004, they are still in the nascent stage. In August of this year, Goldman Sachs held an equity investment forum where they published a report on "Eight Areas That Could Change the World," mentioning that e-cigarettes could completely transform the tobacco industry. As the first area, Goldman Sachs believes that e-cigarettes have the potential to change the current state of the tobacco market and accelerate the decline in traditional cigarette sales.

According to incomplete statistics, e-cigarette sales in 2012 were approximately 120 million units, accounting for about 0.1% of the entire cigarette market. Assuming that global e-cigarette demand reaches 300 million units in 2013, and maintains a 100% growth rate for the next three years, global e-cigarette sales would reach 1.2 billion units by 2015, still only accounting for 0.38%. In December 2010, a U.S. federal court ordered the FDA to stop enforcing the ban on importing e-cigarettes from China, leading to significant growth in the U.S. e-cigarette market, which stimulated the global e-cigarette market. The e-cigarette market presents opportunities for demand to double in 2013, with strong order demand. Currently, there are only a few sizable e-cigarette battery companies, so businesses can seize this opportunity to enter the e-cigarette market. However, the quality requirements for batteries are quite strict, as they need to support high current discharge. High current discharge is undoubtedly the biggest test for e-cigarette batteries. If manufacturers can solve this problem, they will likely secure a place in the e-cigarette market.

Heating Not Burning Information Network Brief Science: For example, 75300 is a relatively common model used in e-cigarettes, with a nominal capacity of 90mAh, while the instantaneous current during e-cigarette use is generally around 1.5A. The 75300 battery needs to withstand a discharge current of 16 times.