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In 2017, although cig-a-likes accounted for less than half of total value sales of vapour products, and was negatively affected by the declining single-use segment, it saw a strong double-digit increase. The vigorous growth of cig-a-likes was driven by two sources of consumer demand.
Due to its tiny value size, vapour products has long been overlooked, and no regulations had been implemented by the end of 2016. However, this situation is changing.
Since early 2018, Shenzhen Jinjia Technologies has been offering customers a new more environmentally-friendly system for its cig-a-like products under which consumers can return the battery to the company when they finish with it and get a free one as a replacement. By contrast, because of the improper method of recycling electronic waste, traditional cig-a-likes bring challenges in terms of environmental protection.
The vapour products category in China is fragmented. According to a broker report released by Founder Securities, China houses approximately 3,900 manufacturers, most of them from Shenzhen, Guangdong province.
When compared with other categories, the domestic market for vapour products has been considered less, due to its much smaller value size. Companies have not made much effort to educate the market and help customers understand more about their brands.
China’s vigorous demand for vapour products is now attracting new players, and leading to a more crowded competitive landscape. Xiaomi Technology, a well-known Chinese electronics and software company, took the wraps off its first e-cigarette product under its MIJIA crowdfunding platform, A&D e-cigarette, by the end of 2017.
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Discover the latest market trends and uncover sources of future market growth for the Smokeless Tobacco and Vapour Products industry in China with research from Euromonitor's team of in-country analysts.
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