Analysis of the current market situation of China's Electronic Cigarette industry in 2022
With the de-stocking of the industry and the continuous demand boom, China's electronic cigarette business will gradually enter a stable development stage. It is understood that China is one of the countries with the largest number of smokers in the world, and the alternative market is broad. With the gradual improvement of the acceptance of electronic cigarettes, the penetration rate of electronic cigarettes will continue to increase in the future, and it is expected to basically replace ordinary cigarettes.
China's electronic cigarette appeared in 2004 and was invented by Chinese pharmacist Han Li. Its original purpose was to help father quit smoking. Electronic cigarette is a kind of imitation cigarette, which has the same appearance, smoke, taste and feeling as cigarette. It is a product for users to smoke after turning nicotine into steam through atomization and other means.
Electronic cigarettes are mainly divided into atomized electronic cigarettes and HNB (heated non-burning tobacco products), both of which are battery-powered electronic devices to realize heating drive. However, HNB cigarette bombs contain tobacco, which is strictly regulated in China and prohibited from sale; Atomized electronic cigarettes add various edible essence of different flavors into cigarette bombs, which are loved and sought after by young people.
China's
E-Cigarette industry is one of the representative industries growing against the trend during the epidemic. Smokers have increasingly high awareness of the harm-reduction of e-cigarettes, and smoking cessation and harm-reduction has gradually become the mainstream voice.
The data shows that by the end of 2021, there are more than 1500 e-cigarette manufacturing and brand-related enterprises in China, including more than 1200 manufacturers, more than 200 e-cigarette brand enterprises and about 120 cigarette oil enterprises.
The Blue Book of Electronic Tobacco Industry in 2021 shows that by the end of 2021, there are more than 1500 electronic cigarette manufacturing and brand-related enterprises in China, including more than 1200 manufacturers, more than 200 electronic cigarette brand enterprises and about 120 cigarette oil enterprises.
There are nearly 190000 electronic cigarette retail businesses in China, including 138000 authorized stores, 47000 exclusive stores and 5000-7000 collection stores. Chengdu is currently the city with the largest number of e-cigarette retail stores in China, followed by Beijing, Shanghai, Shenzhen and Chongqing.
Market development trend of China's electronic cigarette industry in 2022 According to the data of the United States Centers for Disease Control and Prevention, the penetration rate of electronic cigarette users among Chinese smokers has risen rapidly since 2020 and is expected to reach about 2.2% by the end of 2021. The National Health Commission pointed out in the "China Report on Smoking Hazards to Health 2020" that the smoking rate of people aged 15 and above in China is 26.6%. According to this calculation, by the end of 2021, the number of consumers of electronic cigarettes in China will be around 7.7 million.
It has been nearly 20 years since the birth of e-cigarette, but it has only been nearly 5 years since it moved from a minority subculture to mass life. With the recent release of various regulatory policies, China's electronic cigarette industry also stands at an important historical node. According to the data of the Blue Book of Electronic Tobacco Industry in 2021, the market size of China's electronic cigarette industry reached 19.7 billion yuan in 2021, up 36% year on year.
According to the in-depth market research and investment strategy forecast report of China's e-cigarette industry from 2022-2027 released by China Research Institute of Industry, the development trend of China's e-cigarette industry mainly reflects the following contents:
First, comply with the national regulatory policy and innovate the marketing model. As a substitute for traditional tobacco, electronic cigarette has a certain demand in the domestic market. All e-cigarette brands expand offline channels and businesses according to the policy trend and their own financial strength.
Second, insight into user needs and achieve accurate marketing. At present, face maintenance and appetite control have gradually become the important influencing factors for consumers to choose and buy e-cigarets. The market expectation for e-cigarets will be further diversified in the future. In this market trend, while laying out offline channels, brands should also build relevant data platforms, collect user demand data through applets, APP and other tools, analyze user portraits more accurately, and achieve accurate marketing.
Third, rely on traffic thinking to turn to customer operation thinking, improve scene experience and precise customization. Electronic cigarette products have the characteristics of low cost, high gross profit and low technical requirements. Therefore, after forming a stable target consumer group, the main electronic cigarette brands will focus on product customization services.
Fourth, improve the intelligent level of offline operation and improve sales efficiency. Manufacturers can collect and analyze the purchase frequency and use of cigarette bombs by consumers through the data center, simulate their consumption cycle, predict inventory production demand, form specific timing and channel plans for product launch, and improve sales efficiency. In addition, the pilot operation of unmanned stores in the later stage can further reduce the labor operation cost of offline channels.
