China is the inventor and producer of e-cigarettes, and is also the largest consumer of cigarettes. It has the largest number of smokers in the world, but e-cigarettes have not yet spread. Domestic e-cigarette production bases are mainly concentrated in Guangdong, and Shenzhen is China's electronics. The tobacco production center produces about 95% of the world's electronic cigarettes. Most manufacturers do OEM, ODM, and a few manufacturers produce their own brands. The products are sold less domestically and are mainly exported to overseas markets such as Europe, America and Japan.
According to statistics, in 2014, domestic e-cigarette sales exceeded RMB 150 million. In 2014, China Tobacco Co., Ltd. and other traditional tobacco suppliers entered the industry tentatively. At the same time, many e-cigarette brands with e-commerce channels have emerged and competition has intensified. At the same time, due to changes in the product structure of the e-cigarette industry, the domestic factory sales of traditional disposable cigarettes and secondary cigarettes declined. In the second half of 2014, the factory closure of traditional disposable and secondary cigarettes began to appear. Large cigarette manufacturers continue to maintain high profitability trends. But in the future, the domestic e-cigarette market will gradually become active. The gradual tightening of smoking bans in public places will prompt the National Tobacco Administration to deploy new types of tobacco, and the State Administration of Tobacco's 2014 report mentions the importance of research and development of new types of tobacco, including e-cigarettes.
On June 1, 2015, Beijing implemented the “most strict” tobacco control regulations in history. According to China Industry Information Network's “2013-2018 China E-cigarette Market Competition Pattern and Investment Strategy Consultation Report”, the domestic e-cigarette market will reach 634 million yuan in 2017. Therefore, China's e-cigarette market has great potential.
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