Review of the Development of International Electronic Cigarette Industry in 2023

In 2023, some countries banned the sale of e-cigarettes or strictly regulated e-cigarette products, and some e-cigarette retailers and manufacturers went bankrupt. The US Food and Drug Administration (FDA) has rejected many marketing applications for e-cigarette products, resulting in the illegal e-cigarette market in the US reaching billions of dollars.
According to market research firm ECigIntelligence, disposable e-cigarettes account for nearly 40% of the global e-cigarette market. According to data from the Centers for Disease Control and Prevention in the United States, disposable e-cigarettes account for approximately 53% of the US e-cigarette market, and their scale has more than doubled since 2020.
Officials believe that e-cigarette companies should bear responsibility for the environmental damage caused by disposable e-cigarette products. They suggest establishing regulations to make e-cigarette components easier to recycle or more environmentally friendly, and requiring manufacturers to provide funding for recycling projects.
In 2023, many things have happened in the field of electronic cigarettes. The Tobacco Industry Newsletter has recently compiled some important events for your reference.
Important events in the electronic cigarette industry in 2023
In January 2023, Veyros, a UK based retailer, stopped selling disposable e-cigarette products due to environmental concerns. Vaposso became the first e-cigarette brand to obtain a sales license in the United Arab Emirates. The Netherlands prohibits the sale of flavored e-cigarettes. Belgium plans to restrict e-cigarette flavors and devices. A US court has approved a $255 million settlement agreement to address consumer allegations that Juul engaged in deceptive behavior during the sale of e-cigarettes.
In February, RAI requested the FDA to take measures against the illegal sale of disposable electronic cigarettes. The FDA has imposed fines on companies that illegally sell disposable electronic cigarette products for the first time.
In March, Ochia Group replaced all of its investment in Juul with Juul's heated cigarette intellectual property. Ochia Group has agreed to acquire Njoy Company for approximately $2.75 billion. The FDA has put forward new requirements to tobacco product manufacturers regarding the manufacturing, design, packaging, and storage of electronic cigarettes and other tobacco products. Argentina prohibits the import and sale of electronic cigarette products.
In April, Malaysia removed e-cigarettes from the country's list of harmful substances. Vuse brand e-cigarettes account for 41.5% of the US e-cigarette market, while Juul brand e-cigarettes account for 26.1% of the US e-cigarette market. The UK has announced the provision of free e-cigarette entry devices to 1 million smokers to encourage them to give up using cigarettes. Juul has reached a settlement with six states in the United States over its marketing campaign against teenagers, with a settlement amount exceeding $1 billion.
In May, Australia announced a ban on importing all over-the-counter e-cigarette products, including nicotine free e-cigarette products. A survey report in the UK shows that prisoners in the country spend over $8.5 million annually on e-cigarettes. Ochia Group was accused of promoting e-cigarette products to young people and paid $235 million for it. Flonq has launched a fully recyclable e-cigarette device called Flonq Plus-E. Ochia Group has completed its acquisition of Njoy Company.
In June, Hawaiian law in the United States stipulated that transporting e-cigarettes or other tobacco products worth over $10000 was a minor criminal act. ANDS has launched a disposable e-cigarette device, Slix, which claims 99.29% of its components are recyclable. The FDA has issued warning letters to 189 retailers, warning them to sell unauthorized e-cigarettes and other products, especially Elf Bar and Esco Bar branded e-cigarettes. Zanzibar prohibits the import and use of electronic cigarette products.
In July, Juul requested the US International Trade Commission to ban the import and sale of Njoy Ace e-cigarettes, claiming that the product infringed on multiple of their patents. The FDA has allocated $3.9 million to Ohio State University to evaluate the impact of e-cigarette taste on smoking behavior among adult smokers.
In August, Ukraine imposed a consumption tax on disposable electronic cigarettes. Venezuela prohibits the sale of all electronic cigarette products. High Light Vape has been heavily criticized by the media for selling e-cigarettes in the form of highlighter pens. New Zealand has introduced regulations to restrict the use of electronic cigarettes by teenagers. Juul Company announced a restructuring aimed at reducing operating costs. Suriname prohibits the sale of all electronic cigarette products.
In September, the UK Electronic Cigarette Industry Association announced that tobacco companies were not allowed to become its members. Indonesia legalizes e-cigarettes. The FDA has issued warning letters to 15 companies that illegally sell brands of electronic cigarettes such as Lava, Cali, Bang, and Kangertech, and has imposed fines on 22 retailers who illegally sell Elf Bar and EB Design electronic cigarettes. A major fire destroyed the factory of British e-cigarette company Dinner Lady. Healthy Choices Management has filed a lawsuit against Renault, alleging that electronic cigarette products such as Vuse Alto have infringed on their patents and demanding compensation.
In October, a study titled "The Impact of Restricting Flavored Electronic Cigarettes on Tobacco Product Sales" concluded that a ban on flavored electronic cigarettes is beneficial for traditional cigarette sales. The Electronic Cigarette Association of America has ceased operations. Njoy Company has filed a lawsuit against 34 manufacturers and sellers who illegally produce and sell disposable electronic cigarettes. Ochia Group stated that the illegal sale of disposable flavored e-cigarettes has led to a significant decrease in sales of its legal e-cigarette products.
In November, the FDA issued a warning letter to online retailers prohibiting them from selling disposable e-cigarette products from brands such as Elf Bar, EB Design, Bang, Cali, and Lava. The Louisiana Alcohol and Tobacco Control Office has released a product list that includes nearly 400 approved e-cigarette products for legal sale in the state. Juul Company raised approximately $1.3 billion in funds. Australia announced a ban on importing disposable e-cigarettes from January 1, 2024. France plans to ban the use of disposable e-cigarettes by 2025.
In December, members of the United States House of Representatives requested department heads to provide reports on measures they are taking to prevent electronic cigarettes that attract children from entering the United States. The Supreme Court of Mexico has ruled that the ban on the sale of electronic cigarettes violates the country's constitution. The FDA has announced lawsuits against 25 physical stores and online retailers, accusing them of selling unauthorized electronic cigarette products from brands such as Elf Bar and EB Design. The Vuse brand's share in the US e-cigarette market has increased to 42%, while the Juul brand's share in the US e-cigarette market has decreased to 24.3%.
Electronic cigarette regulation may become stricter
Industry insiders predict that in 2024, regulatory agencies will strengthen supervision of disposable electronic cigarette products. In the US market, the variety of e-cigarettes may decrease as the FDA is unlikely to approve too many e-cigarette products for sale. On a global scale, especially in the European Union and the United Kingdom, the e-cigarette industry will continue to develop and grow. According to data from Strait Research Corporation, the global e-cigarette market size is expected to reach $93.94 billion by 2030, with a compound annual growth rate of 16.27% from 2022 to 2030.
Gregory Conley, head of legislation and external affairs at the Electronic Cigarette Manufacturers Association of America, predicts that in 2024, the FDA's policy on electronic cigarette products will continue to focus on strengthening regulation.