Vape standards are still in doubt as planned
At present, the domestic vape market is in a "three-none" state: there are no clear regulatory authorities, no special laws and regulations, no quality standards and barriers to entry. For many years, experts in the field of tobacco control and industry associations have called for the introduction of vape standards and related laws and regulations.
On September 22, the Blue Whale Sankei saw on the national standard information public service platform that vape related standards are in the approval stage. The project is issued on October 11, 2017, and the project cycle is 24 months. On October 11, 2019, the vape standard plan will be released, so we have the news. Of course, it is not excluded that the introduction of relevant standards may be postponed.
It is reported that the national standard plan "vape" and "vape liquid nicotine, propylene glycol and glycerol determination gas chromatography" are reported and implemented by TC144 (National Tobacco Standardization Technical Committee), the competent authority is National Tobacco Monopoly Bureau. Among them, the main drafting unit of the former includes Shanghai New Tobacco Product Research Institute, Zhengzhou Tobacco Research Institute of China National Tobacco Corporation, Yunnan Tobacco Science Research Institute, China Tobacco Standardization Research Center, etc .; the main drafting unit of the latter is China National Tobacco Corporation Zhengzhou Tobacco Research Institute, Guangdong Tobacco Industry Co., Ltd.
The vape standard setting background is the rapid expansion of the vape industry, especially in recent years, with the continuous development of the vape industry, it has formed a large industrial scale.
According to World Health Organization (WHO) statistics, the global smoking population is slowly and steadily decreasing over the past few decades. At the same time, the number of vape users has grown at an annualized rate of more than 25%. The global vape market is growing rapidly. The current global vape market size is 24.7 billion U.S. dollars, and the figure was only 4.2 billion U.S. dollars five years ago.
According to Statista data, the global new tobacco market (mainly vape) in 2008 was only $ 20 million, and by 2017 it had reached about $ 12 billion, with a CAGR of 103.56%. According to Euromonitor International's estimates, there will be more than 40 million consumers of new tobacco products in 2018, and it is expected to grow to 64 million by 2022, and sales of new tobacco products will increase 45.8% year-on-year.
The rapid expansion of the vape market, and the large number of producers and sellers behind it, have also caused problems about uneven product quality, vape hazardous material risks, lack of industry standards, and unclear regulations, such as low-quality counterfeit e-liquid and potential safety hazards. Vape products can endanger the safety of users at any time.
Recently, the Governor of the State of New York announced that New York State will adopt economic administrative measures to ban the sale of flavored vapes throughout the state. The Michigan State Government announced on September 4th local time that the sale of flavored smoke vape is banned in the state. This move may be due to a number of reports of suspected inferior e-liquid induced lung diseases released by the US Centers for Disease Control and Prevention ("CDC") in August this year. On August 23, the Illinois Department of Public Health issued a statement saying that there was a case of severe lung damage caused by the use of vape, and the CDC was also involved in the investigation.
Similarly, in China, vape is also in a "three none" situation: no clear regulatory authority, no special laws and regulations, no quality standards, and no barriers to entry. Therefore, the industry upstream and downstream are calling for standards to be quickly introduced.
The impact of the introduction of the national standard does not stop there. For the industrial side, the explosion of the demand side of the vape has also allowed the entire industry side to continuously expand production capacity, but the vape industry lacks uniform product standards and effective regulatory assessments. The industry has mixed strengths, and a large number of SMEs are engaged in low value-added OEM exports business. The introduction of the national standard will undoubtedly greatly increase product manufacturing standards and production costs, and low-value-added pure foundry small factories will withdraw from the market stage.
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