Category: Business

Wang: Global Trade Tariffs in Vaping
The vaping industry has always faced its share of challenges—from shifting regulatory landscapes to evolving consumer preferences. However, a few factors significantly threaten the industry’s future, such as the impact of global trade tariffs. With the United States set to increase tariffs on Chinese imports, companies that fail to adapt could face skyrocketing costs, disrupted supply chains, and a diminished ability to compete in one of the world’s largest markets.
Trade tensions between the U.S. and China have been escalating for several years. The vaping industry, which relies heavily on hardware manufactured in China, is particularly vulnerable to these developments. Currently, vaping products imported from China face a 25% tariff, but there is a high likelihood that this could double or even increase to 100% under future U.S. administrations.
For vaping companies, such tariff hikes mean the cost of importing devices could skyrocket. A 100% tariff would effectively double the cost of hardware produced in China, driving up retail prices for all such products in the U.S. market. This scenario threatens the financial viability of vaping companies and the availability of affordable, high-quality products for consumers.
The Strategic Decision to Move Manufacturing to Malaysia
Recognizing the potential for increasing tariffs and broader geopolitical challenges, some vaping manufacturers began shifting their operations from China to other countries. Such decisions were never made lightly. China has long been a global leader in manufacturing efficiency with a robust infrastructure and supply-chain network,, and moving away from such an established infrastructure posed significant logistical and operational challenges.
Malaysia offered several key advantages to manufacturers. Firstly, Malaysia enjoys favorable trade agreements with the United States, the United Kingdom, and the European Union. For instance, starting in December 2024, a new free trade agreement between Malaysia and the U.K. took effect, eliminating tariffs on products moving between the two countries. Similar agreements are in place or in development with other major markets.
Secondly, Malaysia’s robust manufacturing ecosystem and skilled workforce make it an ideal location for high-quality production. By establishing operations in Malaysia, companies can continue to deliver reliable, innovative hardware without the added burden of excessive tariffs.
The Broader Impact on the Global Supply Chain
The shift to Malaysia reflects a broader trend in global manufacturing. As trade barriers between the U.S. and China grow, a widespread redistribution of manufacturing operations is underway. Companies across industries—not just vaping—are reevaluating their supply chains to reduce dependence on any single country.
This global redistribution of resources presents both challenges and opportunities. For manufacturers, the challenge lies in building new infrastructure, securing reliable suppliers, and maintaining quality control in unfamiliar territories. However, companies that successfully navigate these changes benefit from more resilient supply chains, reduced geopolitical risk, and greater flexibility in responding to market shifts.
Maintaining Compliance and Quality Standards
Shifting manufacturing bases also brings new compliance considerations. Regulatory bodies like the U.S. Food and Drug Administration (FDA) require Premarket Tobacco Product Applications (PMTAs) for vaping devices. These applications are tied to specific manufacturing facilities, meaning that changing production locations requires amendments to existing PMTAs or new submissions.
Manufacturers must ensure that new facilities meet the highest quality and compliance standards. Proactively managing these regulatory requirements ensures that products remain market-ready even as production locations change.
The Future of the Vaping Industry Amid Trade Challenges
Looking ahead, it’s clear that trade tariffs and global manufacturing shifts are not short-term challenges. Regardless of who occupies the White House, protectionist trade policies are likely to persist or even intensify. The vaping industry must be prepared for this new reality.
Companies that fail to diversify their manufacturing operations face mounting costs and increasing vulnerability to trade disruptions. On the other hand, those who invest in flexible, resilient supply chains will be well-positioned to thrive.
The vaping industry is at a crossroads. Global trade tariffs pose a significant threat, but they also offer an opportunity for companies to rethink their supply chains and build more resilient operations. For manufacturers, shifting production from China to countries like Malaysia is not just a reactive measure—it’s a strategic move to secure long-term growth and competitiveness.
As the industry moves forward, companies that adapt to these challenges will be the ones that lead the way. The ability to anticipate trade disruptions, embrace innovation and maintain rigorous quality standards will determine who succeeds in this ever-evolving market.
As co-CEO of Ispire Technology Inc., Michael Wang is a leader in the development and commercialization of vaping technology and precision dosing. Previously, he served in executive roles at The Pharm/Sunday Goods, Onestop Commerce, Zazzle, and Honeywell.
December 20, 2024
Tobacco, Nicotine Stocks Rally on Trump Victory

Image: Paul Tama
Tobacco stocks rose in the wake of Donald Trump’s victory in the U.S. presidential election, reports The Wall Street Journal.
BAT stocks were up 4 percent this morning; its Reynolds American subsidiary was a large donor to the Make America Great Again action committee, which supported the former president’s bid for reelection. Reynolds has been pushing back against the Biden administration’s proposed menthol ban, which was delayed earlier this year. Under another Trump administration, it is likely that a menthol ban would be completely dismantled.
BAT, Altria and Imperial Brands all have sizable U.S. menthol businesses as the products make up more than a third of the U.S. cigarette market by volume.
Another Trump administration may also lead to a crackdown on illicit imports of disposable vapes, which primarily come from China. During his first term as president, Trump enthusiastically erected barriers to Chinese imports Such measures could boost some tobacco companies’ e-cigarette brands.
Expectations that a Trump presidency will strengthen the dollar, however, could be troublesome for Philip Morris International as the multinational makes around 90 percent of sales in other, primarily emerging market, currencies. A possible increase in inflation could also harm tobacco stocks since they are heavily exposed to price-sensitive, low-income consumers.
November 6, 2024
U.S. Urged to Bolster Post-Employment Rules

Image: bluraz
Public policy experts are calling for stronger federal post-employment regulations as U.S. regulators, including those overseeing the tobacco business, are increasingly losing talent to the private sector.
A recent article in The Examination details how, over the past 15 years, nearly two dozen lawyers have left the U.S. Food and Drug Administration and its Center for Tobacco Products to advise, litigate for or work with the tobacco and vaping industry.
“It seems like every time we get sued in the tobacco industry, a former FDA lawyer is leading the lawsuit,” Commissioner Robert Califf told an FDA oversight organization last year.
After gaining FDA experience, lawyers can significantly increase their salaries by moving to a major law firm or corporation. While a lawyer’s salary in the FDA’s chief counsel’s office, for example, starts at around $83,000, a first-year lawyer at a firm made on average $200,000 a year in 2023, according to the National Association for Law Placement.
Daniel Aaron, a former FDA attorney, says lawyers who’ve left the agency to work on behalf of the tobacco industry not only increase their renumeration but can also have a powerful impact on what lands on store shelves.
“It’s a huge advantage to getting your product to market.” said Aaron, now a University of Utah law professor. “Ex-FDA lawyers know what the agency is worried about, and how a client can maximize its options. They know not just what the law is, but they know how the FDA will enforce the law.”
Federal post-employment rules also bar former employees from communicating with or lobbying a federal employee for two years on behalf of a client or employer under certain circumstances. That said, employees are allowed to work “behind the scenes” advising clients, according to the FDA’s post-employment guidelines.
Genevieve Kanter, a professor at the University of Southern California who co-published a study in 2023 on the revolving door in health care regulation, believes the rules should be strengthened if society is truly interested in preserving independent government.
Kanter’s study focused specifically on conflicts of interest of employees at the highest level of the U.S. Department of Health and Human Services; It found that 38 percent percent of the political appointees from the FDA went into private industry, the fourth highest out of roughly two dozen offices and divisions.
Eric Lindblom, director of the Center for Tobacco Products’ Office of Policy from 2011 to 2016, proposed blocking former staff from working for the tobacco industry for at least one or two years, in all cases, after leaving the policy office. “I thought it was really important that we had that independence,” said Lindblom, now a senior scholar at Georgetown University’s O’Neill Institute.
The proposal went nowhere.
The Examination is a publication supported by Bloomberg Philanthropies.
October 31, 2024
Ispire Inks 5-Year Distributor Agreement With ANDS

Ispire Technology Inc., a company that develops and commercializes vaping technology products, announced a five-year master distributor agreement with ANDS, a Dubai-based distributor in the Middle East, North Africa (MENA) region specializing in combustion-free nicotine delivery solutions.
The partnership marks a significant step in Ispire’s global expansion strategy, enabling the company to bring its Hidden Hills Club nicotine portfolio to the MENA region and Global Duty-Free markets.
Under the agreement, Ispire and ANDS will commercialize the Hidden Hills Club brand across 20+ MENA markets, leveraging ANDS’ extensive partnerships with major duty-free operators, providing access to more than 45 airports, cruise ships, airlines and diplomatic facilities, according to an emailed press release.
“This collaboration is a pivotal moment for Ispire as we continue to expand our global footprint at a time when consumers are looking for harm-reduced products to transition away from combustible cigarettes,” said Michael Wang, Co-Chief Executive Officer of Ispire Technology. “By partnering with ANDS, we gain access to one of the fastest-growing regions in the world, where smoking rates remain high, but there is a significant demand for harm-reduced products.
“With ANDS’ robust regulatory, legal, compliance, brand building, sales and distribution expertise as well as local market insights, we are well-positioned to bring the Hidden Hills Club nicotine portfolio to new markets, offering consumers innovative, harm-reduction alternatives to combustible cigarettes.”
The MENA region is one of the fastest-growing markets for alternative nicotine products, where harm reduction is becoming increasingly important, the release states. Through the partnership, Ispire and ANDS will offer a comprehensive range of products, including vape devices and nicotine pouches, tailored to meet local demand and preferences.
“We are thrilled to collaborate with Ispire to bring the Hidden Hills Club nicotine products and their marketing power to the MENA region and Global Duty-Free markets,” said ANDS Co-Founder and CEO Fadi Maayta. “With Ispire’s cutting-edge products and our extensive reach and expertise, we are confident that this partnership will provide consumers with innovative nicotine delivery solutions that will bring potentially reduced-risk products to adult smokers. Together, we aim to meet the evolving needs of consumers in the region while ensuring compliance with local laws and regulations.”
October 7, 2024
Zyn Adds 450 Jobs, $232 Million Investment in Kentucky

Credit: PMI
The expansion will deliver $277 million annually in regional economic impact and increase the plant’s workforce by 40 percent.
Philip Morris International’s Swedish Match affiliate is announcing an investment of $232 million to expand the production capacity of its manufacturing facility in Owensboro, Kentucky.
The expansion is expected to create an additional 450 direct jobs with an ongoing annual economic impact of $277 million and 410 indirect jobs for the Commonwealth of Kentucky. The facility produces ZYN nicotine pouches to help meet the growing demand from legal-age consumers switching from cigarettes or other traditional tobacco products.
“Philip Morris International’s Swedish Match affiliate has been an important partner and job creator in this region for many years, and I’m excited to see this incredible new investment and the 450 great job opportunities it is creating for families in Owensboro and the surrounding region.”
Kentucky Gov. Andy Beshear
“Philip Morris International’s Swedish Match affiliate has been an important partner and job creator in this region for many years, and I’m excited to see this incredible new investment and the 450 great job opportunities it is creating for families in Owensboro and the surrounding region,” Kentucky Gov. Andy Beshear said. “Our economy continues to set records, and today’s announcement shows we’re bringing jobs to our people instead making our people move to the jobs. I want to thank and congratulate company leadership for doubling down here in the Commonwealth and look forward to many more years of prosperity.”
Construction of the expanded facility is already underway, including adding more production space. Progressive production increases are expected during the project, which is targeted for completion by the second quarter of 2025. The construction phase alone is expected to create nearly 2,800 jobs and have an economic impact of about $414 million.
Career opportunities at the facility cover a wide range of skill levels, including positions such as engineers, production staff, technicians, and quality control. Career opportunities can be found here.
In addition to facility expansion and ongoing optimization of processes to increase capacity progressively over the coming quarters, the Kentucky facility will move from a 24-hour, five-days-per-week schedule to a 24-hour, seven-days-per-week schedule to boost production starting in the fourth quarter of this year.
The Swedish Match Owensboro facility currently has about 1,100 employees. The ongoing expansion of the facility in Kentucky is expected to provide around 900 million cans of capacity by 2025.
In July, PMI announced an investment of $600 million over the next two years through its U.S. affiliate to open a nicotine pouch manufacturing facility in Aurora, Colo. The Aurora facility and Owensboro expansion are designed to provide the capacity needed in the near and mid-term to meet ZYN’s current growth rate with U.S. legal-age nicotine consumers.
August 27, 2024
Regulatory Testing Firm Inter Scientific Joins UKVIA

Credit: Adobe Stock
Inter Scientific, an independent global analytical testing and regulatory compliance firm, announced its membership in the UK Vaping Industry Association (UKVIA), the largest trade body representing the UK vaping industry.
The commitment underscores Inter Scientific’s focus on promoting high safety, quality, and compliance standards within the vaping industry, according to a press release.
Inter Scientific and UKVIA are committed to fostering a robust and responsible vaping industry. By collaborating, Inter Scientific aims to support UKVIA’s initiatives, leveraging its extensive expertise in regulatory affairs to help shape a sustainable future for vaping in the UK, according to the release.
David Lawson, CEO of Inter Scientific, stated, “We are thrilled to join UKVIA as a full board member and contribute to the advancement of the vaping industry in the UK. At Inter Scientific, we believe in the potential benefits to [the] public that the vape industry holds.
“Our collaboration with UKVIA will enable us to work closely with industry leaders to ensure the highest standards of safety, quality, and compliance are met, to benefit consumers and public health.”
Inter Scientific plans to actively participate in UKVIA’s working groups and committees, contributing knowledge and experience to address key industry challenges. The collaboration will focus on areas such as regulatory compliance, product safety standards, and public education.
“By working collaboratively, Inter Scientific and UKVIA aim to enhance the credibility and trustworthiness of the vaping industry, ensuring that consumers have access to safe and reliable products,” the release states.
July 10, 2024
Foundation for a Smoke-Free World Changes Name

Photo: Dzmitry
The Foundation for a Smoke-Free World has relaunched as Global Action to End Smoking (GAES).
The charitable organization says its rebrand reflects a new approach to achieving its mission to end the smoking epidemic. While GAES’ grantmaking will continue to focus on advancing health and science research for robust smoking cessation and reduced-risk solutions, it will also disseminate research findings and information to support people who smoke through its new cessation education program.
Additionally, GEAS’ agricultural transformation Initiative will continue to assist smallholder farmers in moving away from dependence on tobacco growing to achieving more healthful and sustainable livelihoods in Malawi. (Also see Tobacco Reporter‘s special report on diversification in Malawi.)
Through September 2023, the organization received charitable gifts from PMI Global Services while operating as an entirely independent entity. In October 2023, the organization ended its funding agreement with PMI. GAES has since adopted a formal policy that it will not seek or accept funding from any industry that manufactures tobacco products or non-medicinal nicotine products.
In one of its first initiatives under its new name, GEAS announced that it will fund research by the Urban Institute to study tobacco-use disorder and nicotine dependence among low-income individuals in all 50 U.S. states and the District of Columbia.
“We’re thrilled to work with the experts at the Urban Institute, who will carry out the important work of quantifying the magnitude of the problem of the smoking epidemic among low-income individuals in the U.S.,” said GAES President Cliff Douglas in a statement. “Understanding the barriers to cessation is the first step to overcoming them. This work reflects our commitment to end the smoking epidemic worldwide by helping us better understand how best to empower those at the greatest risk of suffering illness and premature death from smoking.”
May 13, 2024
Korolev: Russia Plan to Ban Vapes a ‘Radical Measure’

A vape shop in Vladikavkaz, Russia in 2019. (Credit: irinabal18)
A proposed ban on vapes in Russia is a “radical measure,” according to Maxim Korolev, editor-in-chief of the industry news agency Russian Tabak, reports HCH.
In an interview with NSN, Korolev commented on the recent bill that would completely ban the retail sale of nicotine and nicotine-free vapes in the Russian Federation “for the purpose of saving people.”
“The ban is too radical a measure because it will deprive a significant number of Russians of the opportunity to receive nicotine without carcinogens, said Korolev, estimating this size of the impacted group at between 30 million and 40 million people.
At the same time, he noted, a significant share of tobacco sales in Russia avoids taxes and regulations. “What our smokers who want to quit are now getting as an alternative is also not very clear,” said Korolev. “Perhaps this is not the worst measure if it later makes it possible to introduce legal products for alternative purposes, that is, with nicotine, but with carcinogens, without combustible tobacco.”
Korolev insisted that Russians should be given the opportunity to choose alternative options to tobacco products.
“[F]or decades, we hooked the entire male population on the nicotine needle through military service: almost everyone there started smoking. Now, we need to give people the opportunity to use alternative options before simply banning everything indiscriminately.”
In 2023, the smoking rate in Russia was 18.7 percent, down from 24.2 percent in 2019. In 2022, there was a noted increase in smokers using e-cigarettes and vapes.
April 12, 2024
Qnovia Appoints Four to Scientific Advisory Board

Photo: Mariakray
Qnovia has appointed four new members to its scientific advisory board (SAB). The new members are Neal Benowitz, professor at the University of California at San Francisco, Ian M. Fearon, independent consultant, Darla E. Kendzor, professor at University of Oklahoma Health Sciences Center, and Nicole Nollen, professor at University of Kansas.
“Our newly appointed advisors bring world-class scientific and multi-disciplinary expertise and reaffirm our commitment to advance novel therapies for the millions of people who seek to quit smoking,” said Qnovia CEO Brian Quigley in a statement.
“We are grateful for the leadership of the chair and founding member of our SAB, Dr. Jasjit S. Ahluwalia, a professor at Brown University, who has been instrumental in shaping the direction of our SAB over the past year. The expansion of our SAB complements the regulatory expertise of our policy and regulatory strategy advisor, Mitch Zeller, who served a prior appointment as director of FDA’s Center for Tobacco Products.”
Qnovia is a pharmaceutical company developing inhaled therapeutics across a variety of indication areas leveraging its proprietary inhaled drug delivery platform, the RespiRx.
“Looking ahead, our SAB will serve a critical role as we advance the clinical development of our lead asset, QN-01, towards FDA and MHRA approval,” Quigley said. “We believe our proprietary drug-device combination platform has the potential to be a first-in-class and best-in-class treatment for smoking cessation.
“Last fall, QN-01 demonstrated a superior pharmacokinetic profile compared to existing nicotine replacement therapies in our first-in-human Phase 1 clinical trial. We plan to submit our IND and CTA to the regulatory bodies and look forward to commencing our Phase 1/2 clinical study this year. Overall, we are highly encouraged by the data we have generated to date and believe that 2024 is going to be a pivotal year for Qnovia,” he added.
April 9, 2024
FTC Report Finds Major 2021 Vape Sales Boost

Credit: JIRSAK
The Federal Trade Commission issued its third report on e-cigarette sales and advertising nationwide. The report found combined sales of cartridge-based and disposable e-cigarette products to U.S. consumers by nine leading manufacturers increased by approximately $370 million between 2020 and 2021.
The total topped $2.67 billion. E-cigarette companies also spent $90.6 million more advertising and promoting their products in 2021 than in 2020.
Reported sales of cartridge products increased from $2.133 billion in 2020 to $2.496 billion in 2021; sales of disposable, non-refillable e-cigarette products increased from $261.9 million in 2020 to $267.1 million in 2021.
The data also shows that in 2021, 69.2 percent of e-cigarette cartridges either sold or given away contained menthol-flavored e-liquids, and the rest were tobacco-flavored.
Disposable e-cigarettes are not covered by the flavor restrictions imposed by the U.S. Food and Drug Administration. In 2021, “other” flavored devices made up 71 percent of all disposable devices sold or given away, with the most popular subcategories being fruit-flavored and fruit & menthol/mint-flavored products.
These two subcategories alone made up more than half of all disposable e-cigarette devices sold or given away in 2021.
According to the report, expenditures for advertising and promoting e-cigarettes increased from $768.8 million in 2020 to $859.4 million in 2021, with the three largest spending categories being price discounts, promotional allowances paid to wholesalers, and point-of-sale advertising.
Together, these three categories accounted for almost two thirds of expenditures in 2021.
Finally, the report discusses steps that e-cigarette companies took in 2021 to deter or prevent underage consumers from visiting their websites, signing up for mailing lists and loyalty programs, or buying e-cigarette products online.
These steps include the use of online self-certification to verify users were at least 21 years old and following state laws requiring an adult signature upon delivery of e-cigarette products.
The Commission vote approving the FTC’s E-Cigarette Report and related data tables for 2021 was 3-0.
Youth vaping, however, is down drastically. Government data shows youth vaping dropped more than 60 percent last year compared to 2019. Around 5.3 million middle school and high school students reported vaping in 2019, with more than 2.1 million youth reporting vaping in 2023.
April 8, 2024