Is the Vaping Business Easy? Is the Smoking-Cessation Market Really Profitable?

For smokers trying to quit, e-cigarettes may be a "cure," but beyond meeting the needs of those looking to quit smoking, the barriers to entry and the lack of national standards are also issues that the e-cigarette industry cannot avoid. In recent years, e-cigarettes have gradually become a choice for some smokers to quit. The rise of e-cigarettes is well-intentioned; for example, e-cigarettes do not contain tar, heavy metals, and other harmful substances found in traditional cigarettes, and they can reduce the harm of secondhand smoke to non-smokers nearby. Nowadays, e-cigarettes are also labeled as "fashionable," as seen in their design, various flavors, nicotine levels, and e-liquid changes, leading to an unprecedented broad market.

Several experts interviewed by Legal Person reporters stated that while e-cigarettes have a certain effect on some smokers trying to quit, national standards for e-cigarettes are still pending.

Wang Min, a smoker with nearly ten years of smoking experience, pointed out to Legal Person reporters that compared to traditional cigarettes, e-cigarettes also provide a throat hit, and smokers can choose different flavors such as mint, blueberry, and black tea, thus enjoying experiences that traditional cigarettes cannot offer.

"But I think the most important thing is that e-cigarettes eliminate the pungent smell that comes from burning traditional tobacco," Wang Min explained. As the only smoker in a family of three, he wanted to satisfy his cravings without exposing his family to secondhand smoke and avoid the disdain of his wife or colleagues regarding the pungent smell of smoke, so he joined the "e-cigarette" army.

When asked whether e-cigarettes can truly achieve the goal of quitting smoking, Wang Min admitted it is somewhat difficult, as e-cigarettes are more about controlling smoking, and in social situations, especially when sharing cigarettes, e-cigarettes often struggle to serve as a suitable substitute.

Li Yi, who is also part of the e-cigarette community, has a completely different view from Wang Min.

"I think it caters more to the curiosity and trendiness of young people," Li Yi said, noting that many people start smoking during their school years, while he only began smoking due to work-related socializing. In most cases, he tends to view e-cigarettes as a toy, but when preparing documents or complex PPTs, he might still choose traditional cigarettes.

Regarding the rise of e-cigarettes, Liu Henghui, a researcher at Zhongyan Puhua, told Legal Person reporters that China is the largest producer and consumer of tobacco in the world, with a smoking rate of over 37%. According to statistics, the number of smokers worldwide is declining, while the number of smokers in China continues to grow. Surveys show that there are currently over 350 million smokers in China, indicating a broad development prospect for e-cigarettes in the domestic market.

Internet expert Guo Tao pointed out that the growth of e-cigarette users is closely related to people's increasing awareness of the harms of smoking, and positioning e-cigarettes as a transitional product has evidently also promoted the development of the e-cigarette market.

"Currently, e-liquids come in various flavors, so for the younger demographic, they are more willing to try new things, which is another factor promoting the development of e-cigarettes," Guo Tao cited examples such as some e-liquids containing 0 nicotine and fruity flavors, or having a certain nicotine level but flavored with coffee.

"Cigarettes are a strange thing; people like to light one when they are tired and also when they are relaxing. What other product has such duality?" Wang Min remarked.

For cigarettes, the public is generally aware of their harmfulness, but some habits, or what could be called bad habits, have persisted.

"These habits are, I believe, the biggest challenge for e-cigarettes in capturing the smoker market," Wang Min pointed out. For instance, during gatherings or discussions, friends or colleagues tend to subconsciously pass cigarettes to each other as a sign of respect, but e-cigarettes often cannot solve this issue.

Liu Henghui, in an interview with Legal Person, stated that in the past, cigarettes were once a symbol of social status; even now, one can estimate a person's consumption ability based on the brand of cigarettes they carry. Therefore, cigarettes carry implicit social attributes, such as smokers not only smoking for themselves but also sharing with friends. Of course, cigarettes are often used as gifts. Clearly, e-cigarettes lack these characteristics, and perhaps their inherent design scenario is more suited for private or intimate use, which inevitably limits their acceptance among smokers.

"However, it does not mean that lacking these attributes of traditional cigarettes will diminish their value and market prospects," Liu Henghui added. With the development of the industry, the positioning of e-cigarettes is no longer as a "quit smoking" product. Internationally, brands are increasingly characterized by differentiation and trendiness. The VaporFi brand operated by the well-known e-cigarette group International Vapor Group, Inc. exemplifies this. This brand positions itself as a trendy e-cigarette, emphasizing fun, enjoyment, and social aspects, targeting the 18-45 age group, and has become a favorite among many fashion icons and celebrities abroad.

Guo Tao believes that while the challenge to traditional habits may be a shortcoming of e-cigarettes, for those intending to quit or control smoking, e-cigarettes inherently reduce the probability of relapse and can effectively prevent relapse after a period of quitting due to factors like friends offering cigarettes.

Regarding the future market expansion direction of e-cigarettes, Guo Tao believes that at this stage, the development of e-liquids and pods with different flavors and nicotine levels may only be a temporary solution. Better quitting technologies that are continuously updated and iterated are the right path. After all, as a short-term substitute, merely focusing on the development of e-liquids and pods will make them more akin to "toys," while what is truly important is enhancing their effectiveness in helping users control and quit smoking.

Although e-cigarettes have many benefits compared to traditional cigarettes, there are still areas that need improvement in the current market situation.

Li Yi expressed his concerns to Legal Person reporters, using his e-cigarette as an example. This e-cigarette consists of a pod and an atomizer, with the pod filled with e-liquid, and the e-cigarette's "battery" or charger can hold two e-cigarettes at a time. After charging, Li Yi took one out and immediately took a puff. The reporter from Legal Person noticed a faint blueberry scent, and Li Yi said this pod contains 0 nicotine, simply put, it means that each puff only contains the flavor and other components from the pod, and apart from the fruity flavors in different pods, there is basically no other sensation.

However, for minors, especially those who have never smoked before, will this fruity flavor also stimulate their attempts? Additionally, traditional cigarette first-time users often feel dizzy and uncomfortable, but e-cigarettes, especially 0 nicotine e-cigarettes, are more deceptive. Will this induce smoking behavior among younger individuals?

The reporter from Legal Person noted that regarding the prohibition of selling e-cigarettes to minors, the State Administration for Market Regulation and the State Tobacco Monopoly Administration recently issued a notice stating, "E-cigarettes, as a supplement to traditional tobacco products such as cigarettes, carry significant safety and health risks. To strengthen social protection for the physical and mental health of minors, all market entities are prohibited from selling e-cigarettes to minors. E-commerce platforms are advised to remove e-cigarette products containing terms like 'students' and 'minors,' and to penalize or close related stores (sellers); strengthen the review of e-cigarette product names on shelves, and take effective measures to block related keywords, not displaying e-cigarette products to minors."

At the same time, the reporter from Legal Person noted that in addition to stating that "market entities are prohibited from selling e-cigarettes to minors," the notice also pointed out that "the use of e-cigarettes by minors poses significant health and safety risks," and emphasized that "there are currently no formal national standards for e-cigarettes in China. The various e-cigarette products on the market have strong randomness in terms of raw material selection, additive use, process design, and quality control, leading to uneven product quality. Some products may have quality safety hazards such as e-liquid leakage, poor-quality batteries, and unsafe ingredient additions."

In response, Liu Henghui stated in an interview with Legal Person that the current domestic e-cigarette market is quite chaotic, and regulation is often in a state of blankness. Due to the uniqueness of e-cigarettes, they do not fall under the categories of drugs or medical devices, nor are they formally classified as tobacco products.

Therefore, the corresponding standards and laws for e-cigarettes have not been perfected, which has led to some e-cigarettes even being classified as products without any standards, meaning they lack product standards, quality regulation, and safety evaluation. Previously, e-cigarettes were defined by the Tobacco Bureau as a strategic, comprehensive, and long-term major issue related to the sustainable development of the industry, but no substantial actions have been seen.

Guo Tao, in an interview with Legal Person, stated that while e-cigarettes satisfy young people's pursuit of individuality and coolness, the regulatory standards for e-liquids and pods must keep pace. After all, it is the harmfulness of traditional cigarettes that has led to the gradual development of e-cigarettes. If the regulatory standards for e-liquids and other components are lacking, it will instead cause some e-cigarette users to worry about their safety, which is not beneficial for further breaking into the domestic market.