The United States is the largest consumer market for e-cigarettes, and its development started relatively late, later than the markets in Europe and some Asian countries. In 2011, eGo, the first product jointly developed by JOYETECH, a brand under the Juwei Group, and British TW Company in Florida, immediately swept the US market after it went public, which really triggered a blowout in the US e-cigarette market.

After 10 years of development, the United States has undisputedly become the largest consumer market, accounting for 48% of the global market share, and has a profound impact on the global e-cigarette market. Under the current epidemic, the United States continues to increase the implementation of e-cigarette control policies, which once again arouses domestic e-cigarette manufacturers to pay close attention to industry policies.

Since Columbus discovered tobacco in the American continent in 1492, the development of traditional tobacco has gone through more than 500 years of history, and it has always fallen in love with human society! At the beginning of the 21st century, with the development of electronic technology, electronic cigarettes were born as a brand-new product form, suddenly broke into the ancient industry of tobacco, quit smoking? For the smoke? New smoke? …One stone stirred up a thousand waves and caused huge controversy in the global market!

In less than 20 years, e-cigarettes have gone through three stages of resistance, controversy, and development, and have entered the maturity or standardization period with huge industrial vitality. Following the EU’s official (promulgated) TPD2 policy in 2016; the United States officially implemented the PMTA policy in 2018; in 2021, my country announced the “Decision on Amending the Regulations on the Implementation of the Tobacco Monopoly Law of the People’s Republic of China (Draft for Comment)”. It can be seen that e-cigarettes are clearly included in the scope of tobacco supervision, and the controversy over the attributes of e-cigarettes for more than a decade has finally settled. E-cigarettes have begun a new development journey-that is, orderly development under the premise of policy compliance!

There are essential differences between the two policies currently implemented in Europe and the United States. The EU TPD2 (Tobacco Product Directive) promulgates clear compliance conditions, and merchants can implement them according to the standards, which is relatively easy. The US PMTA (Premarket Tobacco Application) stipulates 7 major areas, requiring merchants to provide strict scientific basis and pass security verification and defense.

The difference in difficulty between the two is not the same. To put it simply, TPD2 application is equivalent to the school's general entrance examination, and you can pass it; PMTA is equivalent to being admitted to Peking University and Tsinghua University, and you must be able to graduate successfully. In addition, the capital investment for the two compliance applications is also very different. The TPD2 application cost is very limited. However, each product application for PMTA generally requires at least 90 million yuan, and it is unpredictable whether it will be passed. The high entry barrier in the US market is undoubtedly a huge obstacle for most domestic e-cigarette manufacturers!

It has also caused tremendous pressure on existing channels in the United States. With the tightening of FDA policies, the U.S. e-cigarette market will inevitably undergo a huge transformation under the compliance policy. In addition, my country's policy on e-cigarettes is also coming soon. Although the specific details are not yet clear, in general, it will be controlled with reference to the current tobacco policy. Under the new situation, products and channels will inevitably undergo tremendous changes. How do Chinese e-cigarette companies respond? This may become a turning point in the development of the enterprise.

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