Category: Markets

  • Bidi Vapor Enters Bidi Stick Into Four New Markets

    Bidi Vapor Enters Bidi Stick Into Four New Markets

    Bidi Vapor successfully completed the regulatory process to enter four new, significant markets. Bidi Vapor’s primary offering, the Bidi Stick is a closed system disposable electronic nicotine-delivery system (ENDS).

    Bidi Vapor recently successfully received premarket authorization from the United Kingdom’s regulatory body, the Medicines and Healthcare products Regulatory Agency, to sell and market Bidi Vapor products through Kaival Brands in the U.K.

    Moreover, Bidi Vapor has successfully completed all necessary certifications and finished the process for distribution approvals to market and sell products in Russia, New Zealand and Australia.

    Once Kaival Brands solidifies local distribution agreements, we will begin to sell and market our full scope of products.

    Niraj Patel, CEO Kaival Brands

    “We are extremely excited to roll out Bidi Vapor products in four significant, new markets for us,” said Niraj Patel, Kaival Brands’ CEO in a statement. “Once Kaival Brands solidifies local distribution agreements, we will begin to sell and market our full scope of products. We believe our first sales in each of these new regions will occur within the next six months with U.K. being the first.”

    Kaival Brands will showcase its Bidi Stick at the VOXPO virtual trade show on April 28–30.

    “We believe the Bidi Stick will be a welcomed entry into the U.K. market as long-time adult cigarette smokers look to transition to ENDS products,” said Patel, who is also president and CEO of Bidi Vapor.

    “While the VOXPO conference is our first international show, we anticipate participating in similar events in Australia, New Zealand and Russia. We see ample opportunity in these new markets, as the success we’ve seen in the United States shows us that once consumers discover an e-cigarette that can provide them a consistent, premium experience, they will welcome the option.”

  • BATSA opens first VUSE Inspiration Store in Cape Town

    BATSA opens first VUSE Inspiration Store in Cape Town

    Photo: BAT

    British American Tobacco South Africa (BATSA) has opened the first VUSE Inspiration store in South Africa in the Canal Walk shopping center in Cape Town.

    VUSE Inspiration stores will be opened at 67 existing sites throughout South Africa.

    “To date, we have made an extensive investment in bringing Twisp into BATSA’s portfolio, and we plan to invest further in our tobacco harm reduction strategy in South Africa,” said BATSA General Manager Johnny Moloto in a statement. “We will be expanding our number of kiosks, investing in bringing our new products to market and enhancing the skills of our BAT team.”

    Another 15 new sites in key locations will be added to the VUSE network by December as part of a significant expenditure project.

    “The opening of our first flagship VUSE Inspiration store in South Africa is an important milestone in delivering on our harm reduction strategy and our investment in science and innovation to demonstrate the potential of our extended portfolio of products,” said Moloto.

  • Malaysian Vaping Industry Valued at $558 million

    Malaysian Vaping Industry Valued at $558 million

    The Malaysian Vape Chamber of Commerce (MVCC) said that the Malaysian vaping industry is valued at RM2.27 billion ($558 million). The figure is one of the primary findings of the recently released “Study on the Malaysian Vaping Industry” report, commissioned by the MVCC.

    MVCC holding papers
    MVCC president Syed Azaudin Syed Ahma (center) Credit: MVCC

    The MVCC has stated previously that the vape industry in Malaysia is too substantial to remain unregulated and has urged the government to immediately introduce appropriate regulations to create a positive multiplier effect to the Malaysian economy.

    MVCC commissioned Green Zebras, a market research agency, to conduct the study, the first of its kind in the country, according to a MVCC release. The report found that there are more than 3,300 businesses related directly to the vapor industry, with a workforce of more than 15,000 workers. It was further estimated that workers in vape industry were paid up to RM450 million in wages in total in 2019.

    “Our data strongly indicate that this sector is a viable and growing industry in Malaysia and can contribute significantly to the local economy. It has already facilitated the growth of local entrepreneurs, many of which are local and bumiputera businesses,” MVCC president Syed Azaudin Syed Ahmad said. “In addition, the Malaysian vape industry currently has an established ecosystem comprising manufacturers, importers and retailers, and a growing distribution and logistics network.

    MVCC graphic
    Credit: MVCC

    In Malaysia, the government has already announced an excise tax on vape devices and e-liquids which has been implemented since 1st January 2021, according to thesundaily.com. However, MVCC believes that the tax regime needs to be broadened to include e-liquids with nicotine which make up 97 percent of the Malaysian market, in order to effectively contribute to the government’s revenue.

    “The Malaysian vaping industry has significant potential that can be unlocked with practical and comprehensive regulation that must include the use of e-liquids with nicotine. This will spur the growth of SMEs, which will in turn create jobs and generate tax revenue for the Government,” added Syed Azaudin.

    Malaysia is in good position to attract FDI into vaping sector as other sectors are seeing challenges to attract investments, according to Syed Azaudin. “MVCC believes the vaping sector is ready and capable to attract quality FDIs given its established ecosystem that global investors and multinational companies would find appealing,” he said.

    The global e-cigarette and vape market size is expected to reach $67.31 billion (RM272.54 billion) by 2027, registering a revenue-based CAGR of 23.8 percent from 2020 to 2027, according to a new study conducted by Grand View Research.

    “MVCC has spearheaded this study in order to provide the Government with a solid data driven foundation to immediately introduce regulations on the vape industry,” Syed Azaudin said.

    To download the full report, visit the MVCC’s website.

  • Heated Products Help Japan’s Record-Low Smoking Rates

    Heated Products Help Japan’s Record-Low Smoking Rates

    Photo: Colleen Williams

    Japan’s smoking rate fell to a record low last year, reports NHK World, citing to a government survey.

    The health ministry surveyed about 5,700 people aged 20 or over last November.

    The percentage of men and women who regularly smoke stood at 16.7 percent. That’s down 1.1 percentage points from a year earlier, and the lowest since the survey began in 1986.

    The ratio for men was 27.1 percent, down 11.1 points over the past decade. The figure for women was 7.6 percent, down 3.3 points over the same period.

    During the recent virtual Global Tobacco & Nicotine Forum, experts attributed Japan’s rapid decline in traditional smoking to the emergence of heated tobacco products.

    Of male smokers who participated in the recent survey, 27.2 percent said they use heated tobacco products, while 25.2 percent of female smokers said they do so.

    The health ministry aims to lower the smoking rate to 12 percent by fiscal 2022.

  • Smoking Now Viewed as a ‘Moral Offense’

    Smoking Now Viewed as a ‘Moral Offense’

    Vyacheslav Dumchev | Dreamstime.com

    The Freedom Organization for the Right to Enjoy Smoking Tobacco (Forest) released a new report stating that “smoking is no longer seen merely as a health risk to the consumer but as a moral offense to be kept ‘out of sight, out of mind.’”

    The report follows an uptick in smoking and vaping bans across England, Wales and Scotland. Freedom of Information requests were made to 340 authorities in England and Wales and 32 authorities in Scotland; 283 provided responses.

    More than 100 councils banned smoking outside council buildings and on council grounds, and 68 percent of councils had a policy restricting smoking and vaping for employees during working hours. There were 49 councils that banned smoking and vaping breaks completely, even if workers were clocked out, and the bans also included walking between work appointments.

    Many councils, says the report, are introducing outdoor smoking bans by stealth. “This isn’t about the risk of passive smoking, it’s a moral crusade,” said Josie Appleton, author of the report. “Smoking is being treated as a shameful activity that should never be seen in public spaces or near official buildings.”

    Absurdly, according to Forest, some councils are stopping their workers from vaping too, which makes it harder for smokers to give up. “It would be better if councils focused on providing public services rather than interfering in the lifestyle choices of their employees and residents,” Forest wrote in its report.  

  • Analyst: PMTA Rule Puts Tobacco in Control of Vapor

    Analyst: PMTA Rule Puts Tobacco in Control of Vapor

    Credit: Sarah Johnson

    Tomorrow’s deadline for the submission of premarket tobacco product applications (PMTAs) to the U.S. Food and Drug Administration (FDA) marks the start of a new era for the e-cigarette industry, according to an article published by The Motley Fool.
     
    Companies who fail to apply for marketing authorization by the deadline will be required to remove their hardware and e-liquids from store shelves, and The Motley Fool expects many e-cigarette companies to exit the business.
     
    Because the cost of complying with the regulations is staggeringly high, many manufacturers will not be able to make it over the hurdle, and the e-cigarette market will be left largely to the tobacco giants.
     
    Although the FDA estimates a single PMTA costs anywhere from $117,000 to $466,000, those figures are considered low by the industry. The Rocky Mountain Smoke-Free Association estimates a single PMTA costs between $8.6 million and $11.1 million per stock keeping units. It forecasts 14,000 small vape businesses employing 166,000 workers will be destroyed, representing $24 billion in economic activity.
     
    Deep-pocketed Philip Morris International, by contrast, already has four separate PMTAs approved: one for its IQOS heated-tobacco device and three for flavors of its disposable HeatSticks.
     
    As of Aug. 31, the FDA had received applications for around 2,000 deemed products, of which around 40 percent have been resolved, according to Mitch Zeller, director of the agency’s Center for Tobacco Products.

  • South Korea: Sales of Heated Products Likely to Edge Up

    South Korea: Sales of Heated Products Likely to Edge Up

    Photo: KT&G

    Sales of heated tobacco products in South Korea will likely edge up this year, even as the overall tobacco market is expected to decline, reports The Korea Herald, citing figures from Euromonitor International.

    According to the market intelligence company, the Korean tobacco market reached KRW17.19 trillion ($16 billion) in 2019. Of that figure, KRW1.89 trillion was spent on heat-not-burn cigarettes, making South Korea the second-largest market for such products after Japan.

    Euromonitor forecast Korea’s heating tobacco product market to reach KRW2 trillion in 2020.

    Sales of e-cigarettes are expected to drop by 80 percent to KRW16.8 billion this year in the wake of new government restrictions on the category.

    Flavored tobacco products, meanwhile, are gaining popularity in Korea. Last year, flavored products accounted for about 20 percent of South Korea’s conventional cigarette market, which is higher than in Japan (7 percent) and China (1.7 percent).

  • Despite Ban, E-Cigarettes Gain Popularity in Taiwan

    Despite Ban, E-Cigarettes Gain Popularity in Taiwan

    Youth smoking is up for the first time in a decade, according to government figures. Photo: Taco Tuinstra

    The number of young Taiwanese people smoking rose for the first time in a decade in 2019, reports Taiwan News, citing a report by the Ministry of Health and Welfare’s Health Promotion Administration.

    Remarkably, considering that e-cigarettes are illegal in Taiwan, the popularity of vaping rose by half.

    An estimated 81,000 young Taiwanese smoked combustible cigarettes last year, while 57,000 youths vaped, Central News Agency (CAN) reported.

    The survey found that the proportion of junior high school students with a smoking habit rose from 2.8 percent in 2018 to 3 percent in 2019, and the proportion of senior high school students from 8 percent to 8.4 percent.

    Four out of every 10 young smokers smoke flavored cigarettes, which are more popular with women, the study discovered. The most popular motivator to start smoking cited was curiosity, followed by “seeing other people smoke,” parents smoking and the desire to relieve pressure.

    The popularity of vaping among young people surged from 2.7 percent in 2018 to 4.2 percent last year, with male senior high school students the most likely category to use e-cigarettes.