In the past 2023, the international vape industry encountered some setbacks, but the overall market size still achieved growth.
Last year, some countries banned vape sales or strictly regulated vape products, and some vape retailers and manufacturers went bankrupt. The U.S. Food and Drug Administration (FDA) has rejected many applications for vape products, which has pushed the size of the illegal vape market in the United States into billions of dollars.
According to market research firm ECig Intelligence, disposable vapes account for nearly 40% of the global vape market. Disposable vapes account for about 53% of the U.S. vape market, more than doubling in size since 2020, according to the U.S. Centers for Disease Control and Prevention.
Relevant people believe that vape companies should bear responsibility for the environmental damage caused by disposable vape products. They recommended making vape components more easily recyclable or more environmentally friendly through regulations that would require manufacturers to fund recycling programs.
In 2023, a lot is happening in the vape field. “Tobacco Industry Newsletter” has recently compiled some of these important events for your reference.
Important events in the international vape industry in 2023
In January 2023, UK-based retailer Waitrose stopped selling disposable vape products due to environmental concerns. Vaporesso becomes the first vape brand to be licensed for sale in the United Arab Emirates. The Netherlands bans the sale of flavored vapes. Belgium plans to restrict vape flavors and vape devices. A U.S. court approved a $255 million settlement to resolve consumer accusations that Juul engaged in deceptive practices in selling vapes.
In February, RAI asked the FDA to take action against the illegal sale of disposable vapes. For the first time, the FDA has fined a company for illegally selling disposable vape products.
In March, Altria Group, Inc. exchanged its entire investment in Juul for Juul’s heated cigarette intellectual property. Altria Group agreed to acquire Njoy for approximately $2.75 billion. The FDA imposes new requirements on tobacco product manufacturers regarding the manufacture, design, packaging and storage of vapes and other tobacco products. Argentina bans the import and sale of vape products.
In April, Malaysia removed vapes from the country’s list of harmful substances. Vuse brand vape accounts for 41.5% of the US vape market, and Juul brand vape accounts for 26.1% of the US vape market. The UK has announced that it will provide free vape starter devices to one million smokers to encourage them to give up cigarettes. Juul has reached a settlement of more than $1 billion with six U.S. states over its marketing activities to teenagers.
In May, Australia announced a ban on the import of all over-the-counter vape products, including nicotine-free vape products. An investigative report in the UK has revealed that prisoners in the country spend more than $8.5 million on vaping each year. Altria paid $235 million after being accused of promoting vape products to young people. Flonq Company launches a fully recyclable vape device – Flonq Plus-E. Altria Group completes acquisition of Njoy Corporation.
In June, Hawaii law made it a minor crime to transport vapes or other tobacco products worth more than $10,000. ANDS has launched the Slix, a disposable vape device that it says is 99.29% recyclable. The FDA sent warning letters to 189 retailers for selling unauthorized vapes and other products. The import and use of vape products is banned in Zanzibar.
In July, Juul asked the U.S. International Trade Commission to ban the import and sale of Njoy Acevape, saying the product infringed on multiple of their patents. The FDA awarded Ohio State University $3.9 million to evaluate the impact of vape flavors on smoking behavior among adult smokers.
In August, Ukraine imposed a consumption tax on disposable vapes. Venezuela bans the sale of all vape products. High Light Vape, a company that sells highlighter-shaped vapes, has come under fire from the media. New Zealand has introduced regulations to restrict the use of vaping by teenagers. Juul announced a restructuring aimed at reducing operating costs. Suriname bans the sale of all vape products.
In September, the British Vape Industry Association announced that tobacco companies would not be allowed to become members. Indonesia decriminalizes vaping. A fire has destroyed the factory of British vape company Dinner Lady. Healthy Choices Management is suing Reynolds, claiming that products such as the vapeVuse Alto infringe their patents and seeking compensation.
In October, a study titled “The Impact of Flavored Vape Restrictions on Tobacco Product Sales” concluded that a flavored vape ban would benefit traditional cigarette sales. The American Vape Association ceases operations. Njoy filed a lawsuit against 34 manufacturers and sellers of illegally producing and selling disposable vapes. Altria Group says illegal sales of disposable flavored vapes have led to a significant drop in sales of its legal vape products.
In November, the Louisiana Office of Alcohol and Tobacco Control released a product list including nearly 400 vape products approved for legal sale in the state. Juul raised approximately $1.3 billion in funding. Australia has announced a ban on the import of disposable vapes from January 1, 2024. France plans to ban single-use vapes by 2025.
In December, members of the U.S. House of Representatives asked department heads to provide reports on what they were doing to stop the flow of vapes that attract children into the United States. Mexico’s Supreme Court has ruled that a ban on the sale of vapes violates the country’s constitution. The FDA announced that it has filed lawsuits against 25 physical stores and online retailers. The Vuse brand’s share of the US vape market rose to 42%, and the Juul brand’s share of the US vape market dropped to 24.3%.
Vape regulations may become more stringent
Industry insiders expect that in 2024, regulatory agencies will increase oversight of disposable vape products. In the US market, the variety of vaping products may be reduced as the FDA is unlikely to approve too many vaping products for sale. Globally, including in the EU and UK, the vaping industry will continue to grow and expand. According to data from Straits Research Company, the global vape market size could reach US$93.94 billion by 2030, growing at a compound annual growth rate of 16.27% from 2022 to 2030.
Gregory Conley, director of legislation and external affairs for the American Vape Manufacturers Association, predicts that in 2024, the FDA’s policy on vape products will continue to focus on strengthening oversight.
“As teen vaping use in the United States has dropped to its lowest level in a decade, the FDA has become stricter when it comes to vaping products. Vaping companies shouldn’t be too optimistic. The vaping environment in the United States could deteriorate. It’s that we have to face reality.” Conley said: “Countries in South America and Southeast Asia may review their previous vaping policies. Europe may be more strongly opposed to the use of disposable vapes. Vape companies must remain vigilant and navigate regulatory challenges. .The development road of the vape industry will be bumpy in the short term.
About VECEE
Shenzhen Yocan Technology Co., Ltd. has been a leading healthy vaporizer manufacturer since 2013. We specialize in designing and innovating high-quality disposable vapes, pod systems, batteries, and other smoking products. It is to become an innovative electric vape pen and customized vape hardware technology company integrating R&D, design, manufacturing, and marketing.
Since 2013, Yocan’s business has expanded to more than 20 countries and 60 regions worldwide. Representative disposable vape products such as the VECEE FINO series, NORA series and pod system products such as the VC30 PRO series, MAZE series are deeply loved by consumers. We have also established strong partnerships with major distributors from North America, Europe, Australia, South America, and the Middle East. For more information, please go to www.vecee.com.
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