Up 250-fold in 4 years: Malaysia's vaping market is growing at an astonishing pace, far beyond expec

Malaysia, abbreviated as MYS, has Kuala Lumpur as its capital and is divided into 13 states and 3 federal territories, covering a total area of 330,000 square kilometers with a population of approximately 33 million. In 2018, the GDP totaled $354.348 billion (31st in the world), with a per capita GDP of $11,239 (68th in the world). The Human Development Index ranks in the top 60 globally, indicating a relatively high per capita income.
 
Like many countries, Malaysia is also a major smoking nation, with smokers accounting for a quarter of the total population (about 8.3 million). As the country's living standards and health awareness improve, many smokers are beginning to seek healthier smoking alternatives. Clearly, electronic cigarettes have become their preferred choice and are gaining popularity.

Currently, the estimated number of adult electronic cigarette users in Malaysia is between 800,000 and 1 million. Most smokers view electronic cigarettes as a "positive alternative"; 100% of surveyed smokers are aware of electronic cigarettes, and 69% have either tried or are currently using them. More than two-thirds of surveyed consumers reported that they have used electronic cigarettes, with 75% stating that they do so primarily to replace traditional cigarettes. "Smokers almost unanimously believe they should have the right to access information about lower-risk products like electronic cigarettes, and over 90% of smokers support the government encouraging adult smokers to switch to lower-risk cigarette alternatives through tax and regulatory policies to ensure they are not sold to minors," he said.
 
Currently, the Malaysian government is drafting new legislation to regulate electronic cigarettes, legalize them, and impose taxes on nicotine e-liquids, with regulations on e-liquids being more lenient than in Europe (35mg-50mg). At present, small vapes are very popular in Malaysia, with about 90% of all physical stores selling small vape products and nicotine salt e-liquids, while the once "hot" large cloud devices now account for less than 10%. As Malaysia is one of the world's second or third largest e-liquid producers, Malaysian users have become accustomed to sweeter e-liquid flavors with more mint. Therefore, closed-system pods from China do not taste as good and have significant room for adjustment. For open-system small vapes, appearance design and feel are very important. For closed-system small vapes, appearance design is not a priority for consumers.

In terms of pricing, closed-system devices retail for around 150 MYR (approximately 245 RMB) or more (one battery + 2 pods), while refillable devices range from 90 to 140 MYR (approximately 146 to 228 RMB), and disposable small vapes are around 30 MYR (approximately 49 RMB).

According to incomplete statistics, the Malaysian electronic cigarette market has grown at an astonishing rate over the past four years, increasing by about 250 times. By the end of 2019, it is expected to exceed $100 million.

- The market began to rise in Q4 2016, with a market size of less than $400,000;

- In 2017, the market rapidly emerged, growing nearly 100 times to reach $40 million;

- In 2018, the market continued to grow, with an increase of over 50%, nearing $60 million;

- In 2019, within four months, the market volume exceeded the total market volume of 2017, and it is expected that this year's total market volume will definitely exceed $100 million.

It is evident that for electronic cigarette brand enterprises in mainland China, Malaysia is a Southeast Asian market worth paying attention to and continuously investing in.