Egypt Mirrors Market Growth; Dozens of Chinese E-Cigarette Manufacturers Are Seizing the Opportunity

Chinese electronic products are being widely sold in Africa, and e-cigarettes are also expanding into this market.

This year's summer e-cigarette exhibition in Cairo, Egypt (Egypt Vape Expo 2023) in May attracted attention, drawing many Chinese e-cigarette brands to participate. Notably, there will also be an exhibition in Egypt in July, from July 6-8, 2023, (MEVS—Middle East Vape Show 2023) at the Cairo International Exhibition Center.

Let's take a closer look at which Chinese factories have already established a presence in the Egyptian market. Recently, many brands have expressed plans to enter the Egyptian market.

At least 30 Chinese companies participated!

Looking back, data released on the official Egyptian website shows that the summer e-cigarette exhibition in May 2023 attracted a total of 105 exhibitors, many of which were from Chinese companies.

(E-cigarettes in Egypt)

Upon reviewing the list of Chinese companies, notable names include SMOK, YUOTO, VOOPOO, Innokin, VAPORESSO, OXVA, PURA, VOZOL, ESMOO, EXTRA, firstunio–, Geek VAPE, PRO VAPE, HQD, FUMOT, LANSVAPOR, MR FOG, REKA, Silvaper, WEETO, aiir, JWel, ANYX, MYLE, FOGER (Fog Technology), KINGZONE, and more than 30 others.

(Many companies from China on the list)

In terms of scale, compared to e-cigarette events in the UK, Spain, Germany, Italy, and the USA, the number of participating companies is smaller, but it still shows the gathering of e-cigarette companies in a regional market.

(Map of the May e-cigarette exhibition in Egypt)

Brands like YUOTO and VGOD (Huadian Times Technology) are important sponsors of this event in Egypt.

Additionally, the popular FUMMO brand in the Middle East also participated in the event in Egypt.

2. What is the e-cigarette market like in Egypt?

Looking at the development of e-cigarettes in North Africa and the Middle East.

Egypt, with a population of 109 million, is a true hub in the Middle East and North Africa, strategically located in the center of the world.

To the east are Middle Eastern countries like Israel, Iraq, Kuwait, Saudi Arabia, the UAE, and Turkey; to the west are African countries like Libya, Tunisia, and Morocco; to the north are European countries like Greece, Bulgaria, and Italy.

(Egypt's regional advantages)

In 2021, Egypt lifted the ban on the sale, import, and marketing of e-cigarettes, becoming another country in the Middle East to legalize e-cigarettes. As an emerging market, Egypt's e-cigarette market clearly has significant growth potential.

Every year, thousands of professional e-cigarette channel buyers from North Africa and the Middle East gather here, establishing new business connections with e-cigarette suppliers, manufacturers, and brands from around the world, promoting e-cigarette business in Egypt and other regions.

(E-cigarette merchants gather in Egypt)

Egypt emphasizes maintaining a favorable business environment for e-cigarettes and is serious about combating counterfeiting. Last year, the Industrial Committee of the Egyptian House of Representatives passed new legislation targeting counterfeit brands and products, imposing severe penalties on manufacturers both locally and globally. The decision by Egyptian authorities reflects their commitment to supporting legitimate businesses in the country while cracking down on illegal trade of certain products.

The country encourages channel openness. Authorized e-cigarette products are traditionally retailed by small and medium-sized enterprises, attracting entrepreneurs who wish to establish new retail points in the country and encouraging e-cigarette brands to invest in the market.

Meanwhile, Egypt has a high smoking rate, providing fertile ground for business and investment. Currently, the smoking rate in Egypt is relatively high (33.8% among males aged 15 and older). Encouragingly, adult smokers are gradually transitioning from smoking to e-cigarettes as a means of quitting or reducing harm.

In terms of policy, the Egyptian Organization for Standards & Quality is responsible for regulating e-cigarettes. Relevant requirements include that if e-liquid contains nicotine, the nicotine concentration must not exceed 30 mg per milliliter. The volume of e-liquid containers must not exceed 10 milliliters, and the volume of disposable pods containing e-liquid must not exceed 2 milliliters. Companies importing and producing e-liquids must establish a dedicated committee for registration, and only registered e-liquid companies can import or produce in Egypt. Packaging must indicate the manufacturer's or importer's name and country of origin if imported...

E-liquids are subject to taxation. According to Egyptian customs, e-liquids must pay a tax of 2 Egyptian pounds (approximately 0.4 yuan) per milliliter, covering various flavored nicotine and non-nicotine e-liquids. E-cigarette devices are subject to value-added tax as general goods. Additionally, Egypt will deduct 10% from the retail price of each sales unit to support the health insurance system.

3. What direction should brands and products focus on in North Africa?

Egypt's geographical location determines its market position in Africa and the Middle East.

Entering Egypt means opening the door to the African e-cigarette market, which is crucial for brands' regional strategies.

At the same time, e-cigarette products from Egypt show some distinct characteristics.

For example, products emphasize designs that incorporate elements of Egyptian culture, such as snakes and pyramid-shaped e-liquids. In terms of appearance or packaging, there are certain regional distinctions, with colors leaning towards black, purple, and gold.

The demand for e-cigarettes in Egypt shares similarities with the Middle East market characteristics.

Users also prioritize features such as puff count, e-liquid volume, large batteries, and smart displays. For instance, the product shape brought by Zunyi is a disposable e-vapor device with a smart display screen, offering a higher puff count; the screen displays real-time oil and battery levels during use, helping to alleviate low battery anxiety and avoid dry hits; unlike conventional rod-style disposable e-cigarettes, it is a compact box shape, stylish in appearance, well-crafted, and available in a variety of colors, with a simple and smooth overall design.

VAPORESSO has introduced the new LUXE XR MAX and XROS 3 NANO devices in Egypt, featuring longer battery life and excellent flavor performance, focusing on open devices.

Geekvape has introduced the Geekvape Wenax K2, Geekvape Q series, and Geekbar meloso series in Egypt, featuring the most intelligent touch-screen box ever, a stylish and well-polished metal pod system, impressive battery life, and smart LED indicators for a worry-free experience. There are both open refillable and disposable options.

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(Highlights from the May e-cigarette exhibition in Egypt)

However, from the scene in Egypt, many e-liquids were showcased, indicating a strong demand for bottled e-liquids in this region.

To gain a leading position in the regional market, many brand companies are focusing on technology, products, and channels.

Since e-cigarettes were legalized in Egypt, the market has shown further robust growth, becoming the first battleground for companies entering the North African market.

Currently, Egypt is replicating the rapid growth seen in some Western markets a few years ago, joining the global and regional market competition, and will be a focus for many Chinese e-cigarette factories and brands. Especially with the legalization and commercialization of e-cigarette consumption in the Middle East, steady growth is expected in the coming years!

The key is to figure out how to expand outward!