The Trend of Explosive Growth for Vaping in China Is Gradually Taking Shape

　　According to online reports from Tobacco Online, after two years of rapid growth, the overseas vaping market slowed somewhat in 2014. This created a slight chill across the industry. However, with smoking bans being implemented around the world, rising tobacco taxes, and governments in various countries becoming increasingly open in their policies toward e-cigarettes, the future market outlook for vaping is expected to become even broader. Although the domestic market in China has not yet fully taken shape, as more and more regions implement smoking bans, the traditional tobacco market is bound to be affected. This will create favorable opportunities for the development of China’s vaping market. China Tobacco has already entered the e-cigarette market with a proactive attitude, which is likely to accelerate the development of China’s vaping sector.

　　Previously, a Chinese research institution conducted a sample survey on domestic e-cigarette usage. Data from five representative cities across the country showed that the usage rate of e-cigarettes in China was 3.4%. Among them, Beijing had the highest usage rate, followed by Shanghai and Guangzhou, while Xi’an was close to the national average and Harbin was only 1.7%, far below the average level. Results from consumer questionnaire data also produced a conservative estimate that each user consumes 118 e-cigarettes per year.

　　Although the usage rate remains low, China’s e-cigarette market in 2014 grew 263% year-on-year compared with 2013, while the number of users increased 259% year-on-year. On Taobao alone, the total sales of the top 10 brands in 2014 reached 140 million yuan. Based on this trend, the total for the top 10 on Taobao in 2015 was expected to exceed 400 million yuan. This shows that the domestic market has been steadily improving and has enormous potential, which is why many Chinese companies are investing heavily to expand in the local market.

　　With major e-cigarette manufacturers making strategic moves and promoting aggressively, brick-and-mortar vape shops have already been established in most provinces across China. Awareness of e-cigarettes is rising, and a large base of vaping enthusiasts has emerged. Many consumers are becoming particularly fond of e-cigarettes, and the trend toward explosive growth in China’s vaping market is gradually taking shape. Vaping is set to become a trend.