Will Vaping Take Off in South Africa Too? Dozens of Chinese Companies Are Heading There to Develop t

Recently, I heard some Chinese companies mentioning their participation in the South Africa Electronic Vaporization Expo.

According to reports, the South Africa Electronic Vaporization Expo (Vapecon South Africa 2023) will be held from August 25-27, 2023, and is the largest disposable electronic vaporization event in South Africa.

Approximately dozens of Chinese companies will participate, including electronic vaporization factories and brands, as well as some logistics providers. Importantly, many leading disposable brands are also entering the African market.

From their official website, it can be seen that a total of 52 companies will participate, including LOST MARY, ELUX, KEYSTONE, airstick, ANYX, VOZOL, FreeMaX, SONG, VAPORESSO, aspire, PURA, VOOPOO, UPENDS, Innokin, HQD, MYLE, MOTI, VAPE KING, VEIIK, BLVK, etc. It is evident that many leading disposable brands, including giants in open systems, are participating.

There are also overseas brands like IVG participating.

(On-site images)

(Image showing part of the company list)

It is clear that the South African market is strategically linked to Africa and the Middle East, which is why many companies are eager to establish a presence.

The South African market has a high appeal for flavors, with 10% of the urban population having tried electronic vaporization. Electronic cigarettes offer over 2000 flavors. Tropical pineapple, caramel milk, and fried ice cream are among the most popular flavors. It is expected that the market share may exceed 60 million USD by next year.

The electronic vaporization market is currently legal in South Africa.

This year, a consumption tax was introduced. In February, South Africa's Finance Minister (Enoch Godongwana) announced plans to impose a new consumption tax on electronic vaporization, bringing it under tobacco regulation, taxing both non-nicotine and nicotine solutions used in these devices.

Recent data shows that starting June 1 of this year, nicotine substitutes, including electronic vaporization products, are now subject to a consumption tax of 2.90 South African Rand (0.15 USD) per milliliter. According to the South African Revenue Service (SARS), manufacturers must apply for and obtain a manufacturing site license from SARS before June 1, 2023, and must submit their first consumption tax account by July 28, 2023.

Overall, South Africa allows the existence of electronic vaporization. However, products are currently unregulated in South Africa, specifically, electronic vaporization is not covered by tobacco control laws or drug laws. On another note, South Africa is planning to establish new regulations for electronic vaporization.

With a population of over 59 million, South Africa has 7 million traditional tobacco consumers, which is the target market for electronic vaporization. Moreover, an increasing number of locals are turning to electronic vaporization, prompting rapid growth in the local industry.

Not missing out on the African market, the strategy originally aimed at the Middle East also seeks to fill global gaps. Are you also paying attention to the overseas channel merchants in the Middle East?