RMB 5 Billion? Have Disposables Taken Over Malaysia?

On August 27, news emerged that the Malaysian Electronic Cigarette Association (MVCC) released the "2023 Malaysia Electronic Cigarette Industry Research" report. This report indicates that as more cigarette users switch to electronic cigarettes, the number of consumers has also increased, with retail value skyrocketing approximately 53% from 2.27 billion MYR (about 3.56 billion RMB) in 2019 to an expected 3.48 billion MYR (about 5.47 billion RMB) by 2023.

The research reveals that the Malaysian electronic cigarette industry is rapidly becoming a game changer in disrupting traditional cigarettes, with 31% of Malaysian smokers having completely switched to electronic cigarettes, while 69% of cigarette users also use electronic cigarettes, with nearly half using them to quit smoking entirely. Currently, about 7,500 retail stores sell electronic cigarette products, and 2,500 stores sell 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 and closed systems dropped 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 annual expenditure on open/closed systems is estimated at 2.56 billion MYR, while the expenditure on disposable products is estimated at 925 million MYR. 34% of electronic cigarette users prefer nicotine-only e-liquids, while 28% prefer nicotine-free e-liquids. About 38% use both. The nicotine content per milliliter (ml) of e-liquid shows that 95% of users use 40 mg of nicotine per ml. Users choose to use electronic cigarettes because they are less harmful to the body compared to cigarettes (45%), help with quitting (45%), and are cheaper than smoking (36%).