In the past 2023, the international e-cigarette industry encountered some setbacks, but the overall market size still achieved growth.
Last year, some countries banned the sale of e-cigarettes or strictly regulated e-cigarette products, and some e-cigarette retailers and manufacturers went bankrupt. The U.S. Food and Drug Administration (FDA) has rejected many applications for e-cigarette products, which has made the illegal e-cigarette market in the United States reach billions of dollars.
According to data from market research agency ECig Intelligence, disposable e-cigarettes account for nearly 40% of the global e-cigarette market. Data from the U.S. Centers for Disease Control and Prevention show that disposable e-cigarettes account for about 53% of the U.S. e-cigarette market, more than doubling in size since 2020.
Relevant people believe that e-cigarette companies should bear responsibility for the environmental damage caused by disposable e-cigarette products. They recommended making e-cigarette components easier to recycle or more environmentally friendly through regulations that would require manufacturers to fund recycling programs.
In 2023, many things will happen in the field of e-cigarettes. "Tobacco Industry Newsletter" has recently compiled some of these important events for your reference.
Important events in the e-cigarette industry last year
In January 2023, the UK-based retailer Waitrose stopped selling disposable e-cigarette products due to environmental concerns. Vaposso becomes the first e-cigarette brand to obtain sales license in the United Arab Emirates. The Netherlands bans the sale of flavored e-cigarettes. Belgium plans to restrict e-cigarette flavors and vaping devices. A U.S. court approved a $255 million settlement to resolve consumer accusations that Juul engaged in deceptive practices in selling e-cigarettes.
In February, RAI asked the FDA to take action against illegal sales of disposable e-cigarettes. For the first time, the FDA fined a company for illegally selling disposable e-cigarette products.
In March, Altria swapped its entire investment in Juul for Juul's heated cigarette intellectual property. Altria Group agreed to acquire Njoy for approximately $2.75 billion. The FDA imposes new requirements on tobacco product manufacturers regarding the manufacture, design, packaging and storage of e-cigarettes and other tobacco products. Argentina bans the import and sale of e-cigarette products.
In April, Malaysia removed e-cigarettes from the country's list of harmful substances. Vuse brand e-cigarettes account for 41.5% of the US e-cigarette market, and Juul brand e-cigarettes account for 26.1% of the US e-cigarette market. The UK has announced that it will provide free e-cigarette entry devices to 1 million smokers to encourage them to give up cigarettes. Juul has reached a settlement of more than $1 billion with six U.S. states over its marketing activities to teenagers.
In May, Australia announced a ban on the import of all over-the-counter e-cigarette products, including nicotine-free e-cigarette products. A British investigative report shows that prisoners in the country spend more than $8.5 million on e-cigarettes every year. Altria paid $235 million after being accused of promoting e-cigarette products to young people. Flonq Company launches a fully recyclable e-cigarette device - Flonq Plus-E. Altria Group completes acquisition of Njoy Corporation.
In June, Hawaii law made it a minor crime to transport e-cigarettes or other tobacco products worth more than $10,000. ANDS Company has launched the disposable e-cigarette device Slix, saying that 99.29% of the components of the device are recyclable. The FDA issued warning letters to 189 retailers for selling unauthorized e-cigarettes and other products, specifically the Elf Bar and Esco Bar brand e-cigarettes. Zanzibar bans the import and use of e-cigarette products.
In July, Juul asked the U.S. International Trade Commission to ban the import and sale of Njoy Ace e-cigarettes, claiming that the product infringed on multiple of their patents. The FDA awarded Ohio State University $3.9 million to evaluate the impact of e-cigarette flavors on smoking behavior among adult smokers.
In August, Ukraine imposed a consumption tax on disposable e-cigarettes. Venezuela bans the sale of all e-cigarette products. The company High Light Vape has come under fire in the media for selling e-cigarettes that look like a highlighter pen. New Zealand has introduced regulations to restrict the use of e-cigarettes by teenagers. Juul announced a restructuring aimed at reducing operating costs. Suriname bans the sale of all e-cigarette products.
In September, the British Electronic Cigarette Industry Association announced that tobacco companies would not be allowed to become members. Indonesia legalizes e-cigarettes. The FDA issued warning letters to 15 companies for illegally selling e-cigarettes of brands such as Lava, Cali, Bang and Kangertech, and fined 22 retailers for illegally selling Elf Bar and EB Design e-cigarettes. A fire destroyed the factory of British e-cigarette company Dinner Lady. Healthy Choices Management sued Reynolds, claiming that products such as the e-cigarette Vuse Alto infringed on their patents and requested compensation.
In October, a study titled "The Impact of Restricting Flavored E-Cigarettes on Tobacco Product Sales" concluded that a ban on flavored e-cigarettes would benefit traditional cigarette sales. The American Vaping Association ceases operations. Njoy filed a lawsuit against 34 manufacturers and sellers of illegally producing and selling disposable e-cigarettes. Altria Group says illegal sales of disposable flavored e-cigarettes have led to a significant decline in sales of its legal e-cigarette products.
In November, the FDA issued a warning letter to online retailers, prohibiting them from selling disposable e-cigarette products under brands such as Elf Bar, EB Design, Bang, Cali and Lava. The Louisiana Office of Alcohol and Tobacco Control released a product list including nearly 400 e-cigarette products approved for legal sale in the state. Juul raised approximately $1.3 billion in funding. Australia announced that it will ban the import of disposable e-cigarettes from January 1, 2024. France plans to ban disposable e-cigarettes by 2025.
In December, members of the U.S. House of Representatives asked relevant department heads to provide reports on what measures they are taking to prevent e-cigarettes that attract children from entering the United States. Mexico's Supreme Court has ruled that a ban on the sale of e-cigarettes violates the country's constitution. The FDA announced that it has filed lawsuits against 25 physical stores and online retailers, accusing them of selling unauthorized e-cigarette products from brands such as Elf Bar and EB Design. The Vuse brand’s share of the U.S. e-cigarette market rose to 42%, while the Juul brand’s share of the U.S. e-cigarette market dropped to 24.3%.
E-cigarette regulation may become more stringent
Industry insiders predict that regulatory agencies will strengthen supervision of disposable e-cigarette products in 2024. In the U.S. market, the variety of e-cigarettes may decrease because the FDA is unlikely to approve too many e-cigarette products for sale. Globally, especially in the EU and the UK, the e-cigarette industry will continue to grow and develop. According to data from Straits Research Company, the global e-cigarette market size may reach US$93.94 billion by 2030, with a compound annual growth rate of 16.27% from 2022 to 2030.
Gregory Conley, director of legislation and external affairs for the American E-Cigarette Manufacturers Association, predicts that in 2024, the FDA’s policy on e-cigarette products will continue to focus on strengthening supervision.
"Although the number of U.S. teenagers using e-cigarettes has dropped to its lowest level in a decade, the FDA has become more stringent on e-cigarette products. E-cigarette companies should not be overly optimistic. The development environment for e-cigarettes in the United States may become more stringent. Oops. This is the reality we need to face." Conley said, "Countries in South America and Southeast Asia may revisit their previous policies on e-cigarettes. Europe may be more strongly opposed to the use of disposable e-cigarettes. E-cigarette companies must maintain Be vigilant and address regulatory challenges. The road to development for the e-cigarette industry will be bumpy in the short term.”
