Trump administration bans flavored vape cross-border sellers hit again
China produces most of the world's vape, and Shenzhen alone is expected to exceed 500 vape and e-liquid manufacturers. Most vapes are for export. This track has both small cross-border e-commerce teams and large companies at the level of listed companies. The United States is the world's largest market for vape, accounting for more than 30% of the global market.
As more and more young Americans start smoking vapes, the Trump administration is preparing to ban the sale of non-traditional tobacco flavored vapes.
United States Secretary of Health Alex Azar and reporters said that 5 million teenagers this year admitted to smoking vape, compared with 3.6 million last year, an increase of nearly 40%. The number of adults who smoke vape is about 8 million. This makes the highest levels of the United States very concerned about adolescent health.
In September this year, Trump held a meeting with First Lady Melania Trump and the Minister of Health, and then announced that it would introduce a ban on all flavored vapes except for traditional tobacco flavors.
Juul is the most successful vape company in the United States. The vape brand, represented by Juul, caters to the tastes of young people and women, and launches vapes with a variety of light or novel tastes. The marketing promotion activities make young people and teenagers feel very "cool". Because of the power of social media communication, these flavored vapes are very popular among young people and adolescents, and 1 out of 5 high school students have used vape.
In fact, vape embargoes are being considered or implemented in many parts of the United States because of the harm that e-liquid can cause to the body.
In June 2019, San Francisco decided to ban the sale of vape across the city, which made San Francisco the first city in the United States to vape. Perhaps the saddest thing about this is Juul. Juul's brand slogan is "Dedicated to the innovation of adult smokers". It has a market share of over 70% in the United States. It is synonymous with vape in the eyes of young Americans. Its headquarters is in San Francisco.
Subsequently, Livermore also approved a bill prohibiting vape sales in physical stores, but vape devices can still be sold online. More cities, such as Seattle and Michigan, may also join the vape embargo. Also in September, a number of mainstream media in the United States, including CBS and CNN, decided to stop playing vape ads on the media.
Some vape companies believe that candy-flavored e-liquid can be banned, but mint-flavored e-liquid should not be included in the ban. However, some insiders pointed out that the ban on sales will not curb demand and will develop a black market for flavored vape transactions.
At the same time, Juul's entry into China has not been smooth. Juul just launched vape and mint, mango, cream and other flavors of Cartomizer in JD.com and Tmall in early September, but the products were removed from the shelves shortly after. The withdrawal of these flavored vapes is uncertain whether they are related to the ban on the US side.
By the way, both the UAE and India have recently introduced new policies for vape. In the UAE, vape, tobacco atomizing equipment and tobacco substitutes will be taxed at 100% starting next January. Some media believe that high vape taxes will make vape citizens return to traditional cigarettes.
India simply banned vape. In mid-September, the Indian government held a press conference announcing a ban on the production and sale of vapes in India, and no vape ads.
For cross-border e-commerce sellers on the vape track, vape replaces traditional tobacco is an amazingly large market, but this industry is also most affected by policy. We will wait and see how the US ’s embargo on vape and e-liquid ’s embargo, the UAE ’s tax increase, and India ’s sales policy will be affected.