Egypt’s copycat market is growing, and dozens of Chinese e-cigarette manufacturers are seizing the o

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

A summer e-cigarette exhibition in Cairo, Egypt (Egypt Vape Expo 2023) in May this year attracted attention and saw participation from many Chinese e-cigarette brands. Notably, there will also be an exhibition in Egypt in July, from July 6 to 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 that they "plan to enter the Egyptian market."

At least 30 Chinese companies participated!

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

(The Egyptian vibe of e-cigarettes)

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 (Mist Technology), KINGZONE, and more than 30 others.

(The list includes many companies from China)

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

(The booth layout 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 Egyptian event.

Jier Technology, Smoore, AIVIP, Zun Yipin, Han Qingda, Heyuan Group, Juwei Group, and other well-known brands also participated in the competition for the North African market.

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, located in the center of the world with a unique geographical advantage.

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)

After Egypt lifted the ban on the sale, import, and marketing of e-cigarettes in 2021, it became another country in the Middle East to legalize e-cigarettes. As an emerging market, Egypt's e-cigarette market clearly has much greater 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 businesses gather in Egypt)

Egypt emphasizes maintaining a good business environment for e-cigarettes and takes anti-counterfeiting seriously. 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 combating illegal trade of certain products.

The country encourages open channels. 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 e-cigarette brands looking to invest in the market.

At the same time, Egypt has a high smoking rate and fertile ground for business and investment. Currently, the smoking rate in Egypt is relatively high (33.8% for males over 15 years old). Fortunately, adult smokers are gradually transitioning from smoking to e-cigarettes as a way to quit or reduce 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 filling 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 special 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, Egypt has confirmed the tax on e-liquid, charging 2 Egyptian pounds (approximately 0.4 RMB) per milliliter of e-liquid, which includes 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 do 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 e-cigarette market in various regions of Africa, which is crucial for brands' regional strategies.

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

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 is a certain regional focus, with colors leaning towards black, purple, and gold.

The demand for e-cigarettes in Egypt has market characteristics similar to those in the Middle East.

Users also focus on high puff counts, e-liquid volume, large batteries, and smart display features.

For instance, the product form brought by Zun Yipin to the event this year is a disposable e-vapor device with a smart display screen and a high puff count; the screen displays real-time e-liquid and battery levels during use, helping to alleviate low battery anxiety and avoid dry hits; unlike conventional stick-type disposable e-cigarettes, it is a compact square box, 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 touchscreen boxes ever, stylish and well-polished metal pod systems, 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 event 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 global and regional market competition, and will be a focus for many Chinese e-cigarette factories and brands vying for market share. 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 go out!