Vapour products experienced fast growth during the five years after it was introduced in China in 2004. Attracted by the huge profits and low entry level, plenty of small manufacturers joined this vapour products industry. Due to the lack of standardisation and relevant regulation, most of the vapour products produced by the small manufacturers are fake products with low quality. This situation led to a sharp decline of vapour products sales between 2010 and 2012 and manufacturers turned their attention to the Western markets. However, vapour products recovered in 2013 and 2014, and that was mainly caused by the promotion of products from domestic and international manufacturers as well as increasing awareness of the products amongst young consumers in China.
In 2015, the domestic brands dominated vapour products and enjoyed fast growth in China. Due to a lower entry level there is a huge amount of vapour product manufacturers in China, especially in Shenzhen, which is a city in South China. Amongst the numerous brands of vapour products, SMOK, Kongsong, Easing and Ruyan were the key leading players in 2015, according to the trade interviews. Most of these brands focused on the tank systems and distributed through online channels over the review period.
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This industry report originates from Passport, our Tobacco market research database.