35% of U.S. vaping device imports come from Indonesia, second only to China

Source: U.S. International Trade Commission (chart by Liangge Zhishang)

According to data released by the U.S. International Trade Commission for June 2023, in the first half of 2023, only 63.7% of U.S. vaping device imports came from China, while products from Indonesia accounted for more than 35% of the share.

This means Indonesia has surpassed other countries to become the second-largest exporter of vaping devices after China.

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An industry insider commented, “Domestic vaping manufacturers are facing fiercer competition than ever before. The answer is obvious: overseas producers have taken a large number of orders.”

Recent developments in Indonesia’s vaping supply chain:

In July 2022, Smoore, one of the world’s largest vaping manufacturers, built its 14th global factory in Malang, Indonesia. The factory covers about 6 hectares and has 16 production lines, each capable of producing 7,200 vape pods per hour.

In August 2022, Jinjia Co., Ltd. (002191.SZ) disclosed on an investor platform that it was building a production base in Indonesia to provide integrated vaping services.

Vaping accessory supplier Zhijing Precision also stated that its Indonesia factory went into operation in 2022.

In January 2023, international tobacco giant Philip Morris International (PMI) officially opened a factory in Indonesia built at a cost of US$180 million, dedicated to producing IQOS HEETS tobacco sticks.

On September 11, 2023, South Korea’s largest tobacco company, KT&G, announced plans to build a new factory in East Java, Indonesia, which is expected to begin operations in 2026.

Source: Liangge Zhishang, excerpted