Why is China's Vape market so flat?

According to the data report of the China Industrial Research Institute, the global Vape industry has surged from US$416 million in 2010 to US$7.1 billion in 2016. The market has expanded 17-fold in six years and the compound annual growth rate has reached 60.5%. It is expected that the global Vape market is expected to exceed 10 billion US dollars in 2018!

Under the megatrend of global Vape products, the Chinese Vape market has been cold and clear. According to the data, China's consumption in the Vape market in 2016 was 3.2 billion yuan, while the total sales revenue of the cigarette industry in 2016 was 1,370.6 billion yuan. The Chinese Vape market currently accounts for only 0.23% of the tobacco industry.

Although China is the inventor of modern Vape and the world's largest Vape production and export country, supplying 90%-95% of Vape products and accessories worldwide, the Chinese Vape market has always been a niche market.

In the past few years, some unscrupulous merchants sold Vape with the banner of “smoking cessation” and “Qingfei”, and even some false propaganda, some companies put Vape into pharmacies for sale. On the other hand, because the early Vape technology was not mature, the user experience did not give smokers an experience close to real smoke, and Vape was expensive at the time. Therefore, causing a huge psychological gap for smokers, Vape's reputation and impression is very bad.

The current technical problem is no longer a bottleneck that hinders Vape's development in China. The common complaint from Vape users in the past few years is that Vape feels far from the real smoke.

From the perspective of consumption, in Europe and the United States, after ten years of deep cultivation and development, Vape has become a chewing gum-like product appearing on the shelves of European and American convenience stores, and Vape continues to erode the traditional European and American tobacco market at a crazy rate. This conclusion can be reflected in the decline in the sales of tobacco products in the United States. Since 2009, US tobacco product sales have fallen by about 3.5% per year, and the need to quit smoking and replace tobacco has created an opportunity for Vape's development.

The need to quit smoking and replace cigarettes also appears in China today. Today's Chinese people are paying more and more attention to health, but it is an indisputable fact that China has a large number of smokers. According to the World Health Organization data, the number of smokers worldwide is over 1 billion, and the number of Chinese smokers is as high as 350 million. In 2017, the number of Vape users worldwide reached 35 million, while the number of Vape users in China was only 500,000.

With unparalleled advantages, Vape has become a popular lifestyle technology in Europe and America over the past decade. The innovation of atomization technology and nicotine transmission efficiency can solve the common pain points in the industry, and better and faster promote the popularization of this lifestyle on a global scale.

However, for Vape companies, in order to truly occupy the Chinese Vape market, we must start from ensuring product quality. This is the constant quality of the company's development, the stable quality of smokers, the satisfaction of smokers and the ultimate simple user experience. It is the standard for testing the success of a Vape company. In his view, a good substitute for tobacco products must allow smokers to get the satisfaction of cigarettes at the same time as zero learning costs, and the quality should be as stable as ever.

Prev:How to choose ration E-liquid Next: Detecting the user's urine to determine the safety...