In addition to the falling purchasing power of consumers and a further increase in excise tax on cigarettes in 2017, the wider availability of vapour products, open vaping systems in particular, was also blamed for the decline in volume sales of cigarettes. Due to claims that vapour products are less harmful than smoking cigarettes, a number of cigarette smokers continued to switch to the former, which are also known as e-cigarettes.
The vaping trend is likely to gain ground over the forecast period as more products and brands become available in retail outlets. As time goes by, vapour products may not only be seen as a substitute for cigarettes but also a lifestyle choice for urban dwellers.
At the time of writing, vapour products was still considered a “grey” area in Indonesia. There are currently no regulations impacting the sale and use of these products.
Vapour products remained a very fragmented category in 2017 due to the many different players and brands present, with these products mostly imported from various different countries. While many products are manufactured in China, many are also imported from the US.
Most of the new launches in vapour products in 2017 were e-liquids in various different flavours. These tend to be imported from China, although a handful of domestic manufacturers are also actively launching new e-liquids.
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Understand the latest market trends and future growth opportunities for the Smokeless Tobacco and Vapour Products industry in Indonesia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Smokeless Tobacco and Vapour Products research and analysis database.
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