Malaysia Vaping Market Grows 53%, Disposable Products Account for 32% Market Share

Recently, the Malaysian Electronic Cigarette Association (MVCC) released the "2023 Malaysia Electronic Cigarette Industry Research" report, which shows that as more and more cigarette users switch to electronic cigarettes, the number of consumers has also increased, with retail value surging approximately 53% from 2.27 billion ringgit (about 3.56 billion yuan) in 2019 to an estimated 3.48 billion ringgit (about 5.47 billion yuan) by 2023.

The research reveals that the Malaysian electronic cigarette industry is rapidly becoming a game changer for traditional cigarettes, with 31% of Malaysian smokers completely switching to electronic cigarettes, while 69% of cigarette users also use electronic cigarettes, with up to half using them to quit smoking.

The report also points out that the electronic cigarette industry's contribution to the economy has significantly increased, and the number of jobs related to electronic cigarettes has also risen.

MVCC Secretary-General Ridhwan Rosli stated that the research clearly shows the continuous strong growth of the electronic cigarette industry.

"In addition to its significant contribution to the national economy and helping smokers quit, it also promotes the growth of local businesses and directly and indirectly creates multiple job opportunities throughout the supply chain."

He expressed support for the government's regulation of the electronic cigarette industry through the introduction of a tax framework and the proposed "2023 Public Health Smoking Products Control Act." However, the associated "Generational End Game (GEG) policy" has raised concerns for MVCC.

Rosli added that the main concern is the potential adverse economic impact this may have on the sector. The electronic cigarette industry is experiencing significant growth, and many entrepreneurs have found opportunities and livelihoods in this market.

Implementing the GEG policy could stifle this growth, leading to unemployment and affecting many people's livelihoods.

"This would also send the wrong message to smokers, placing electronic cigarettes in the same category as traditional cigarettes, which would deter many from using electronic cigarettes to quit smoking."

According to the data from the "2023 Malaysia Electronic Cigarette Industry Research," the findings were obtained through two studies: one involving direct contact with industry participants and the other an online consumer survey.

The findings of the industry research show that the number of electronic cigarette businesses has changed over the past few years.

Currently, there are about 7,500 retail stores selling electronic cigarette products, and 2,500 retail stores selling electronic cigarette products. From 2015 to 2022, the number of employees in the industry increased from 15,000 to 31,500.

Key findings from consumer research include:

· The proportion of electronic cigarette users using open systems and closed systems decreased from 77% and 23% in 2019 to 50% and 18% in 2023, while disposable systems rapidly captured 32% of the market share.

· The total average expenditure for open/closed systems is estimated at 2.56 billion ringgit per year, while the expenditure for disposable products is estimated at 925 million ringgit per year.

· 34% of electronic cigarette users prefer nicotine-only electronic cigarette e-liquids, while 28% prefer nicotine-free e-liquids. About 38% use both.

· The nicotine content per milliliter (ml) of electronic cigarette e-liquid shows that 95% of users use e-liquids with 40 mg of nicotine per ml.

· Users choose to use electronic cigarettes because they are less harmful to the body compared to traditional cigarettes (45%), help with quitting smoking (45%), and are cheaper than smoking (36%).

Rosli mentioned that Malaysia has an international reputation for producing high-quality electronic cigarette products, especially e-liquids.

This positions Malaysia favorably in attracting high-quality foreign direct investment, thereby strengthening the electronic cigarette business ecosystem.