A brief overview of the e-cigarette industry

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    What exactly is an e-cigarette?

    E-cigarettes are a new type of electronic device that has emerged as a less harmful alternative to traditional cigarettes.

    E-cigarettes, by definition, are electronic transmission products that produce an aerosol containing nicotine (nicotine) for human smoking.

    Cigarette cartridges, vaping devices, and products sold in conjunction with cartridges and vaping devices are all examples of e-cigarettes.

    Disposable vapes that do not require cartridge replacement and are pre-filled with tobacco oil are also available as e-cigarettes.

    Electronic cigarettes and heated non-combustibles are examples of new tobacco (HNB). The electronic cigarette is currently in the form of atomized electronic cigarettes.

    The atomized e-cigarette is a low-pressure micro-electronic atomization device that uses a rechargeable lithium battery to generate current to atomize the smoke oil in the atomizer, simulating the smoke produced by smoking. hnb stands for heated non-combustible and is a heated cigarette.

    (1) Atomized e-cigarettes are currently available in two varieties: closed e-cigarettes and open e-cigarettes.

    (2) There are two types of closed e-cigarettes: bullet exchange e-cigarettes and disposable e-cigarettes.

    (3) The bullet replacement e-cigarette comes with an atomizer and smoke oil, and the bullet must be replaced by the user.

    (4) The disposable vape is a consumable that must be purchased in its entirety.

    (5) Vape oil must be added to the open atomization chamber of open-ended e-cigarettes.

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    Global e-cigarette market size

    The market size of global e-cigarette sales is gradually increasing trend, but with many countries and regions continuing to improve electronic cigarette industry regulation, the overall increase has shrunk, sales in 2013 increased 77.9% year on year, 37.7% year on year growth in 2018, the impact of the new crown plus epidemic in 2020, an increase of only 1.4%, by 2021, the increase rose to 11.6% to achieve sales of 21.2 billion US dollars.

    The fashionable shape and rich taste of e-cigarettes make e-cigarette users grow rapidly

    What sources of revenue do e-cigarettes rely on?

    Many people are curious: are electronic cigarettes, in the end, considered tobacco? What sources of revenue does it rely on? To make money, instead of selling cigarette sticks to attract customers, sell cigarette bullets.

    Cigarette sticks are a hardware product that can be reused, whereas smoke is a consumable product that must be repurchased.

    This is similar to purchasing a printer machine, but also purchasing cartridges; the machine can always be used, but the cartridge must be replaced after a certain period of time.

    Printer manufacturers rely on cartridge sales to make money; similarly, electronic cigarettes rely on cartridge sales to make money.

    The electronic cigarette industry chain

    Simor International’s OEMs and channel manufacturers have greater bargaining power in the e-cigarette supply chain.

    The upstream chain of the electronic cigarette industry is more fragmented, while the midstream is more concentrated.

    Atomized e-cigarettes and heated non-combustible products have similar industry chains.

    Raw material manufacturers upstream of the e-cigarette industry chain primarily produce atomizers/heaters, batteries, tobacco oil, packaging accessories, and other components with low e-cigarette thresholds, low technical thresholds, and low industry concentration.

    Midstream electronic cigarette industry chain: involves the design and manufacture of electronic cigarettes, primarily composed of manufacturers and brands, manufacturers to OEM, ODM model to provide OEM production for the brand, core components supplier barriers are high (for example, Simor International’s ceramic atomizer core products have patent + scale + Knowhow barriers), and the market is concentrated.

    The finished products are delivered by agents and distributors to terminal retail stores, such as well-known e-cigarette brands, supermarkets, convenience stores, and so on, and sold to consumers.

    The head effect is significant, electronic cigarette brand leader for JUUL, due to the brand for consumer mind occupation, channels, R & D capabilities bring product experience and other advantages.


    Electronic cigarettes may not be a good thing, but they are profitable.
    After all, this industry has a “deadly” product feature: addictiveness!

    However, the policy risks posed by the e-cigarette industry must not be overlooked. Finally, I’d like to emphasize the importance of cherishing life and staying away from tobacco.

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