China is the main production base of electronic cigarettes in the world, accounting for about 95% of the world’s output, of which more than 90% are exported. In recent years, countries have put forward stricter testing and certification for the import, export and sales of electronic cigarettes, prompting enterprises to invest more energy in product R&D and innovation.
Basic overview of the electronic cigarette industry:
Electronic cigarettes are one of the new types of tobacco products. The new type of tobacco has three major characteristics: one is that it does not need to be burned; the other is to provide nicotine; the third is to produce only a small amount of second-hand smoke or no second-hand smoke.
The upstream industrial chain of the electronic cigarette industry mainly includes chip design solution providers, manufacturers of batteries, e-liquids, atomizers, screens, cotton, silk and other accessories, plastics, hardware and other raw materials, silk screen printing, packaging and other suppliers;
The midstream is the design and manufacture of electronic cigarettes, mainly including electronic cigarette manufacturers and traditional tobacco manufacturers. At present, most domestic electronic cigarette manufacturers adopt OEM and ODM business models. The average design and production cycle of an electronic cigarette product in the industry is 3 to 5 months;
The downstream of the e-cigarette industry chain mainly includes agents, distributors, retailers and end consumers. Retailers obtain products from agents and distributors and sell them to end customers.
As the market matures, the currently fragmented e-cigarette production industry will move towards consolidation in the future. In the future, companies with channel advantages are expected to rely on stable order resources to lead the industry integration and complete the layout of the entire industry chain of electronic cigarettes, so as to obtain more profits in the industry chain.