Vape Newcomer INSTA FILL: Use Innovative Products to Capture the Disposable Market

  INSTA FILL has launched a product that combines pod systems and disposables. Stan believes that Germany is the second-largest market for e-cigarettes in Europe, with promising development prospects, and INSTA FILL aims to dominate the disposable market in the future.

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On September 15, at the Dortmund Tobacco Exhibition, Yijiate's e-cigarette brand INSTA FILL launched a product that combines pod systems and disposables. Stan Chng, the brand sales director of INSTA FILL, told us that Germany is the second-largest e-cigarette market in Europe, with promising development prospects, and INSTA FILL aims to "eat" the disposable market. As a new e-cigarette brand that just debuted at the Dubai e-cigarette exhibition in June 2023, what gives INSTA FILL the confidence to make such bold claims?

Recently, disposable e-cigarettes have faced setbacks in the European market: French Prime Minister Élisabeth Borne stated in an interview that she plans to ban the sale of disposable e-cigarettes; multiple UK media outlets reported that the UK government plans to propose a ban on the sale of disposable e-cigarettes in an upcoming consultation to prevent children from becoming addicted to these devices.

Disposable e-cigarette products have long been criticized by environmental organizations and some members of society due to their appearance and "single-use" characteristics. The e-cigarette industry is also pondering how to balance the convenience of disposable products while minimizing environmental pollution. Thus, a type of e-cigarette that combines the characteristics of both pod systems and disposables has emerged, classified in the market as an "innovative disposable product."

INSTA FILL also showcased such products at the Dortmund Tobacco Exhibition.

 INSTA FILL｜Image Source: Two Supremes

Stan introduced to us that the product's biggest feature is that the "e-liquid, device, and battery are separable," and it is a large puff product compliant with EU TPD standards, being a compliant 3500 puff product at the UK and EU levels.

Stan stated that the core market strategy of the INSTA FILL brand is to comply with EU requirements, "We are making products for these policies." Therefore, the development of innovative disposable products is also centered around compliance. For example, the product's battery is reusable, aiming to reduce negative environmental impacts; the refillable pod means users can refill e-liquid, avoiding single-use waste.

When sold, the product contains only 2ml of e-liquid, but it also comes with a 10ml transparent e-liquid bottle. Once the 2ml of e-liquid is used up, users can discard the old pod and replace it with a new one, filling it with e-liquid, and simply connect the new pod to the device to continue using it.

 INSTA FILL｜Image Source: Two Supremes

On another level, the separable design of the device and e-liquid also aligns with the current situation in the German market. According to reports, the German e-liquid tax is levied at 0.16 euros per milliliter. It is expected that by 2024, the tax rate will increase to 0.2 euros, rising to 0.26 euros in 2025 and reaching 0.32 euros in 2026. This could lead to a nearly 40% increase in retail prices for e-cigarettes.

Taxing e-liquids is a method the German government uses to restrict e-cigarettes, especially targeting disposable e-cigarettes. According to the Dortmund Tobacco Freedom Alliance (BfTG), disposable e-cigarettes accounted for 40% of the e-cigarette market share in 2022. After the policy is implemented, disposable e-cigarettes with high-capacity e-liquids will inevitably increase costs. Additionally, BfTG estimates that the market share of disposable e-cigarettes will decrease by 10 percentage points in 2023 compared to 2022.

Stan told us that he expects a separate sales strategy in Germany, "e-liquid, device, and battery will be sold separately." The specific measure may involve selling the battery and device together, but the e-liquid must be sold separately; otherwise, "the overall tax will be very high." Under these conditions, INSTA FILL will be much cheaper than other disposable products of the same capacity, making the product more competitive.

Stan mentioned that there are already clients from Switzerland, the UK, and the US showing interest in the new product, with good negotiations ongoing with clients from the US and the UK.

In fact, compliant large puff products have already appeared in the UK market, with previously reported products like Happy Vibes 3500 and IVG 2400 using this as a selling point.

 INSTA FILL｜Image Source: Two Supremes

Stan told us that unlike the separate sales in Germany, the UK market will adopt a bundled sales model. The retail price of INSTA FILL in the UK is also set at the same price point as IVG 2400, both at £12.99, but INSTA FILL offers more puffs.

Stan is optimistic about the future of the German market, believing it has enormous potential. "We think Germany is the second-largest market in Europe, after the UK," he said. When asked which market and demographic INSTA FILL's products would focus on, Stan stated that they aim to "eat" the disposable market.

Currently, INSTA FILL still faces competitive pressure from other e-cigarettes. However, if it is a competition of compliant products, Stan believes they can win based on quality and design. However, due to the high competition from the black market in the UK, illegal products can be sold at extremely low prices. "Some brands' 3500 puff illegal disposable products can be as low as £8.99 on the black market," Stan said.

In other words, the competition for compliant large puff products is not just against equally compliant products but also against these black market products, which can offer the same puff count at much lower prices, truly squeezing the market space for compliant products. Stan believes that UK consumers prefer to pay for more "affordable" products.

Regarding the future, Stan stated that the European market is the company's primary target, and the next step is to enter the US market.