Will Vaping Devices Still Have a Market in 2020?

Will vaping devices have a market in 2020? The Chinese electronic cigarette industry has experienced a period of explosive growth, with numerous brands and capital flooding in, leading to intense market competition. Subsequently, the regulatory scope of the electronic cigarette industry in China has gradually become clearer, with online channels being shut down and regulatory enforcement increasing.
 
Will vaping devices have a market in 2020?

There is no strict regulation, only a ban on online sales and mainstream media advertising.

As electronic cigarettes transition from a mere alternative for smokers to a trend embraced by capital; young adults and non-smokers begin to follow suit, many high school students use exam pressure as an excuse. I strongly support the ban on online sales, even if it conflicts with my stance.

Currently, the market is not stagnant, nor does it need to be revived. It is natural that the development speed will be suppressed.

On November 1, 2019, the National Tobacco Monopoly Bureau and the State Administration for Market Regulation jointly issued a notice on further protecting minors from the harm of electronic cigarettes. The notice urged electronic cigarette manufacturers and sellers to promptly shut down their online sales websites or apps; urged e-commerce platforms to close electronic cigarette stores and promptly remove electronic cigarette products; and urged electronic cigarette manufacturers and sellers to retract any electronic cigarette advertisements published online.

It is important to understand that 95% of electronic cigarette equipment worldwide is produced and exported from China. Shenzhen accounts for 90% of this production, making it a lucrative industry for China. Therefore, I guess there will not be a complete ban. Regulation is indeed happening. Currently, the production of products containing tobacco is prohibited, but the tax rate for electronic cigarettes is quite friendly.

At the end of 2019, the complete online ban on electronic cigarettes will accelerate the reshuffling of the market, with small brands or counterfeit products relying on platforms like Taobao, JD, and Tmall facing elimination. Those that survive will be those with quality and word-of-mouth, truly valuable products.

As mainstream media uniformly portrays electronic cigarettes as toxic and harmful, topics linking electronic cigarettes to the pandemic have brought significant attention, albeit negative, which accelerates more people’s awareness of electronic cigarettes.

Currently, the market is not stagnant, nor does it need to be revived. It is natural that the development speed will be suppressed.

For players who have entered the market, increased costs, incomplete product categories, and difficult access to channels may lead many to abandon the market, while others may switch to pod systems.

Will vaping devices have a market in 2020? Currently, due to the impact of the pandemic in 2020, many electronic cigarette manufacturers are facing insufficient production capacity, and several brands have begun to re-enter the electronic cigarette market. Therefore, opportunities do exist, but after the ban on online sales, it is certain that we will not return to the previous prosperity.