The ecig industry is hotter

The IECIE ecig exhibition, the first large-scale exhibition in the ecig industry, was held in Shenzhen on April 16. As the domestic production capacity of nearly 90% of the ecig industry in Shenzhen, the exhibition has been held since 2015.

With the arrogance of the ecig industry, the scale of the IECIE ecig exhibition is also from the exhibition area of 15,000 square meters in 2015, 183 exhibitors and more than 40,000 people, and the exhibition area of 40,000 square meters in 2019, from 45 countries and regions. There are 1,500 brand merchants and only 50,000 professional visitors.

At the exhibition site, from the upstream lithium battery, hardware machine tools, downstream assembly and E-liquid production, the ecig industry chain is very complete, and most of the exhibitors are from the Pearl River Delta, especially Shenzhen.

This is mainly because of China's huge potential ecig market: in 2018, the global ecig (excluding heating and non-combustion) estimated output value of 16 billion US dollars, an increase of 7.6 times compared with 2012. However, China, as the world's largest ecig industry research and development, production, sales and tobacco consumption producers, accounts for less than 10% of the entire consumer market, there are still great opportunities.

The equity transaction in the US ecig new brand JULL completed at the end of last year may also be a stimulus. Only three years after its establishment, JULLe cig was acquired by cigarette manufacturer Altria for 32.5 billion shares at a price of US$12.8 billion, with a valuation of US$38 billion. In this transaction, the two founders jumped into a billionaire billionaire, and 1,500 employees each received a year-end award of about 8 million yuan last year, realizing financial freedom.

In addition, the domestic ecig industry supply chain is relatively mature, and the number of employees in the industry is about 1 million, which greatly reduces the barriers to entry. Even some people in the industry joked that in Shenzhen, where ecig manufacturers are the most, you can assemble an ecig by walking a few factories.

For small players, the ecig industry looks like a piece of fat in front of them, they can eat it when they reach out. In the midst of wealthy insurance, since the regulatory policies are not yet clear, they still have the opportunity to make a fortune in them.

For those star projects that have already achieved high investment, they have more advantages, and they are pursuing a larger market share and a farther future.