Who Will Dominate the Future of the E-cigarette Industry: HNB ‘Stockpiling Warmth’, HDB ‘Heated Not

Laimi Atomization | ZERO | Heated Not Burned | Compatible with IQOS

1. The UK may become a smoke-free country.

Recently, the UK government department NHS announced that it will incorporate e-cigarettes as prescription medicines into the healthcare system. If implemented, the UK will become the first country in the world to classify e-cigarettes as medical products.

Earlier, in mid-October, the FDA in the United States also approved three e-cigarette products for PMTA review for the first time. After rigorous testing, the FDA believes these three e-cigarettes are more likely to be used by smokers to reduce their risk of tobacco harm.

2. HNB “Stockpiling Warmth,” the ZERO brand from Wuyesheng Group emerges. 

The National Tobacco Monopoly Administration and the State Administration for Market Regulation have jointly launched a special rectification of the e-cigarette market. In recent years, IQOS has almost disappeared from the domestic market. This is not only due to the health hazards of the product in terms of tobacco components but also because the method of importing through sales channels has touched the regulatory bottom line of China's tobacco monopoly law.

Although some e-cigarettes have been banned, the enormous market capacity is driving demand growth. The usage habits of new tobacco products have already formed, and the awakening of health awareness among Chinese smokers, along with the urgent demand for e-cigarettes to replace traditional cigarettes, is forcing the e-cigarette industry to continuously refine and develop towards environmentally friendly and healthy concepts. In this context, the healthier and more environmentally friendly ZERO+ brand was born.

Currently, there is a gap in the HNB market in China, and the future market scale is expected to reach hundreds of billions.

In addition to new tobacco products, market research has revealed that the previous regulation limiting traditional cigarette prices to no more than 1,000 yuan for 200 cigarettes has gradually been relaxed. Some retail points in Chengdu are now selling two types of cigarettes named Sichuan Zhongyan Kuanzhai Guobao and Hubei Zhongyan Huanghelou 1919, both priced over 1,000 yuan per box, specifically 1,600 yuan and 1,580 yuan respectively.

Personnel from a tobacco company in Sichuan confirmed that some cigarette prices have indeed exceeded the 1,000 yuan per box limit, and retail prices will be adjusted based on their own supply situation, with the aforementioned Huanghelou priced slightly higher.

As we all know, the tobacco industry is a major taxpayer in China. Whether it is the change in the sales structure of cigarettes or the upcoming tobacco new policies, they will further expand the share of tobacco tax revenue. An industry analyst told reporters from Caixin that "national tax revenue is very important, and the domestic market will definitely be dominated by state-owned tobacco, so HNB products will be launched and tobacco prices will be relaxed." He also stated that price increases in tobacco will inevitably lead to higher demands for upstream raw materials such as cigarette labels and flavorings, "the higher the grade, the higher the profit." #p#分页标题#e#

The introduction of national standards for new tobacco products will not only benefit the supply chain of state-owned tobacco but also contribute to the healthy development of the entire industry. The company has laid out the HNB industrial chain, including production and manufacturing, and will continue to advance according to the original rhythm, actively embracing regulation as relevant rules are introduced for further adjustments. The company's business layout is now quite comprehensive, and like the entire industry, they are looking forward to the prompt implementation of relevant rules to guide the development of the industry.

3. The e-cigarette market is further shrinking. Will it be replaced by HNB in the future?

Compared to the hot sales of HNB products, the e-cigarette market is continuously shrinking.

Many e-cigarette stores have already posted signs saying "store for rent." A salesperson from an e-cigarette store told reporters from Caixin, "Currently, e-cigarette regulation is becoming stricter, media coverage is suppressing demand, and sales are continuously declining. Coupled with high rental costs, we can only relocate to reduce costs."

Given this trend, with the future launch of HNB products in the domestic market, what space will the e-cigarette market have? Will it face a new round of regulation or will it be completely replaced by HNB?

The explosive growth previously achieved by the e-cigarette industry has been quite remarkable, but after rapid expansion, store profits have been squeezed, and it is normal for operations to decline and incur losses. The public's negative sentiment will gradually ease with the UK's incorporation of e-cigarettes into the healthcare system, and in the future, the leading effect will definitely be prominent, with both e-cigarettes and HNB developing in a symbiotic manner.

The main target audiences for e-cigarettes and HNB are also different. E-cigarettes are favored by younger consumers due to their diverse flavors, while many people, especially older smokers, do not prefer them.