The current status of the Shenzhen vape industry development in 2023
Shenzhen’s vape industry, as a representative product of the new economy, new format, and new consumption, has become an important supplement to traditional cigarettes. Currently, the vape industry in Shenzhen has become a significant force in stabilizing foreign trade and employment in China.
“Global vape look to China, and China’s vape look to Shenzhen.” Shenzhen is a global hub for the production and export of vape. According to Shenzhen Customs statistics, vape, as an important category of Shenzhen’s overseas trade, reached an export value of 7.1 billion yuan in the first two months of this year, an increase of nearly 40%, accounting for 66.9% of the total value of vapeexports in the country.
Shenzhen continues to maintain its position as the largest vape export city in China. Shenzhen has established a complete industrial chain, including upstream raw material supply, midstream product design and manufacturing, and downstream global market sales, occupying a core position in the global vapeindustry.
According to Shenzhen Customs, in the first quarter of 2023, Shenzhen’s vape exports were mainly sold to mainstream consumer markets such as Europe and the United States.Although the export share to the United States has declined, it still accounts for 32.3% of the total export value, remaining the largest market for vape exports in Shenzhen.
During the same period, exports to the European Union, the United Kingdom, and Russia increased by 1.9 times, 90%, and 2.7 times respectively, totaling 40.9%. The European market has shown significant rapid growth, especially in the United Kingdom, Germany, France, Italy, and other European countries. The UK, in particular, implements a 0% consumption tax rate for vape and has relatively lenient flavor restrictions, making it the largest market for vape in the country.
With the promulgation of the “Regulations on the Management of vape” and mandatory national standards for vape, the vape industry in Shenzhen has entered a new development stage where there are laws to follow and standards to adhere to.
According to Shenzhen’s import and export data in the first half of 2023, Shenzhen’s export value of vape reached 26.2 billion yuan, an increase of 35.8%. The Shenzhen vape industry’s overseas expansion has entered a new era of compliance.
On October 1st, the “Mandatory National Standards for vape” will also be implemented. With this, the Shenzhen vape industry has entered a new development stage where there are laws to follow and standards to adhere to. With the guidance of regulatory policies, the industry now has a more stable outlook for long-term development.
Several heads of vape companies in Shenzhen believe that the overseas market is growing rapidly and poses higher demands on the companies. To expand into international markets, it is crucial for companies to solidify their technological advantages and gain a voice in the global market. The Shenzhen vape companies should face challenges directly, accelerate technological innovation, and achieve brand transformation and upgrading.
