KT&G begins export of e-cigarette device

KT&G started exporting its e-cigarette heating devices to Russia last month in accordance with the company’s agreement with Philip Morris International (PMI) under which the two parties will work on promoting global marketing campaigns, according to the tobacco company, Thursday.

During a conference call upon the announcement of its second-quarter results, the company confirmed an analyst question that 12.5 billion won ($10.54 million) worth of e-cigarette devices were exported to Russia throughout last month. KT&G signed a pact for strategic collaboration with its rival PMI in January.

“It is true that e-cigarette devices were exported last month. We plan to announce further details on the outcome of the PMI deal in the near future,” the company said during the call. The partnership is calling for KT&G to export its “lil” tobacco heating devices and tobacco sticks worldwide through PMI’s global sales network spanning 180 international markets, without specifying which markets the two companies will focus on.

Some questions have persisted over the progress of the deal so far, as no visible outcome has been achieved over the past six months since the agreement was made. However, as exports have now begun, KT&G’s effort to expand its e-cigarette presence is anticipated to pick up momentum.

The export came after heat-not-burn (HNB) tobacco products’ domestic market penetration rate declined for the second consecutive quarter. The rate stood at 13 percent at the end of last year, but declined to 12.6 percent in the first quarter and 12.4 percent in the second quarter. The company, however, said this does not mean a deadlock in HNB products’ growth, citing the expansion in overseas markets.

“From a future business standpoint, the overall heat-not-burn (HNB) tobacco market is expected to grow,” the company said. “When the new products are introduced, the market is bound to grow. While there would be some minor impact from governments’ policies and market events, there is no doubt about the growth trajectory.”

Apart from the e-cigarette business, KT&G said conventional tobacco sales this year will likely exceed its annual goal set earlier as demand remains strong. In exports, the firm has already secured shipping volume destined for Middle Eastern markets in the second half of the year, while other overseas markets are showing signs of recovery from the impact of COVID-19.

Separately, KT&G decided to acquire 2.5 million treasury shares worth 200.25 billion won to improve shareholder value. The company said it has no plans to retire those shares, but the buyback will have the same effect because it will not sell the shares back to market.

KT&G reported 1.32 trillion won in consolidated sales during the latest quarter, up 4.8 percent from a year earlier. But the operating profit contracted by 1.1 percent year-on-year to 394.7 billion won, due to the decline in duty free sales.

Of them, overseas tobacco sales increased by 14.1 percent to 286.4 billion won, as its main export markets in the Middle East show solid recovery. The company expected the growth trajectory will continue as its sales are growing in Latin South America and Africa.

South Korean vape market soars against COVID 19 pandemic

Since the COVID 19 outbreak, the epidemic has had a sever impact on many industries around the world, and the development of the e-cigarette industry has also been in the haze.

90% of the world’s e-cigarettes are produced in China. Due to the blockade and quarantine policies, from late February to early March, many Chinese e-cigarette supply chain enterprises were unable to work normally, and workers were unable to return to work, thus it has led to a worldwide shortage of electronic cigarettes.

In late February, when the epidemic situation in China continued to improve, the epidemic situation in South Korea was in an emergency, and the outbreak growth rate was very fast.

Affected by the epidemic, we thought that the sales volume of the South Korean e-cigarette market would decline severely, but strangely, the South Korean e-cigarette market not only did not decline, but rose sharply!

According to the Tobacco Online report, the actual sales statistics from Korean convenience stores show that as of the end of February, the market share of e-cigarettes in the Korean tobacco retail industry reached 13.1%, and tobacco industry officials commented, “This is the highest record ever. “.

The official said, “Due to the spread of the new coronavirus infection, the increase in indoor smoking has led to an increase in e-cigarette sales. Because of the cold winter, e-cigarette sales have shown an increasing trend, but February sales compared with January increased sharply this year, which It’s a very rare thing. ”

The Korean tobacco industry predicts that the share of e-cigarettes will continue to increase in the future. The spread of cognition that “e-cigarettes are less harmful than ordinary cigarettes”, the advantages of not emitting odors, and the reduction of smoking places all boost the demand for e-cigarettes.

The World Electronic Cigarette Union Preparatory Committee is formally established now

In the afternoon of December 17, on the eve of the 2019 International Electronic Cigarette Summit, the representatives of the Electronic Cigarette Merchants Association from 7 countries including China, the United States, the United Kingdom, Germany, Malaysia, South Korea and Indonesia unanimously agreed that the World Electronic Cigarette Union Preparatory Committee was officially established.

Liu Yufeng, the full-time vice chairman of the China Electronic Cigarette Chamber of Commerce, said that the establishment of the preparatory committee will accelerate the co-construction of the International Electronic Cigarette Industry Cooperation Organization, promote the establishment of an international standard system for electronic cigarettes, promote trade facilitation, and international quality certification.

Participants raised their hands and voted for the alliance
Participants raised their hands and voted for the union

The preparatory meeting of the World E-cigarette Union is chaired by Lin Hanzhong, assistant secretary general of the China Electronic Cigarette Chamber of Commerce and vice-chairman of the E-cigarette Committee. In the future, the union or alliance will organize research and recommendations on national regulatory policies, research and exchange on industry technology trends, e-cigarette health and safety, clinical trial data sharing, Intellectual property protection, international trade circulation cooperation, international e-cigarette exhibition layout cooperation and other issues in the in-depth cooperation.

Group photo of representatives of the seven major sponsors
Group photo of representatives of the seven major sponsors

Representatives from the conference association agreed that strengthening public awareness and publicity protecting minors from e-cigarettes is a common task for everyone. It is necessary to form an alliance to promote the global development of the e-cigarette industry. As an organization and business enterprise of the e-cigarette industry, they must not only provide users with a new generation of consumer experience, but also shoulder a responsibility and mission for improving the public health and safety of e-cigarettes.

Consumers’ health, safety, and happiness are the most fundamental driving forces for the development of the electronic cigarette industry. To achieve sustainable and standardized development of the industry, global e-cigarette practitioners should reach a consensus and put the user’s health and safety and prevent the use of electronic cigarettes by minors in the first place. Increase product health and safety research and development, strengthen production process monitoring, improve product quality testing, and standardize marketing behaviors to make e-cigarettes healthier and safer.

For this reason, exploring the establishment of the World Electronic Cigarette Union is an inevitable need for joint development of the industry. In the absence of global regulation of electronic cigarettes, it is necessary to formulate general rules and labels for international markets, build bridges for communication and cooperation, and build on the basis of scientific research. They will produce higher quality products and establish a more effective market order.

Group photo
Group photo

According to the data provided by the Electronic Cigarette Industry Committee of the China Electronic Chamber of Commerce, the total global sales of vape/ electronic cigarettes in 2019 is US $ 33 billion, a year-on-year increase of 106.25%, which is 14 times since the industry development in 2012, and China has dominated the global electronic cigarette industry. Leading the world in terms of patents, production capacity, supply chain, technology, etc. The new business model and economic growth points of e-cigarettes have great potential value. At the same time as the rapid development of e-cigarettes worldwide, there are also diversified standards and trade frictions between countries. Superimposed problems, such as uncoordinated safety regulations, have attracted widespread international attention on how companies around the world collaborate and cooperate in self-discipline development. The establishment of the World Electronic Cigarette Union will accelerate the industrialization and standardized development of electronic cigarettes, and has far-reaching significance.

Representatives attending the preparatory meeting were John Dunn, Chairman of the Board of the UK Vaping Industry Association (UKVIA), Tony Abboud, Executive Director of the American Vaping Technology Association (VTA), Eddie, Secretary General of the Indonesian vaping association (APVI), and German chairman of the vaping trade association (VDEH) Michael, Chairman of the Korean Electronic Cigarette Association (KECA) Zhang Xiaojin, Senior Member of the Malaysian Electronic Cigarette Association Zeng Nongye; Chairman of the Electronic Cigarette Industry Committee of the China Electronic Cigarette Chamber of Commerce Ou Junbiao, Executive Vice President Huang Guihua, Secretary-General Weinuo, et al.

New tax on electronic cigarettes in South Korea

The South Korean government has told the outside world that its health regulators will speed up research to decide whether to ban the sale of e-cigarettes and have begun to advise people to stop using relevant e-cigarettes immediately.

At the same time, the South Korean government will speed up the research process to decide whether to ban such products completely, which may hit major producers such as Juul, the US e-cigarette giant, and KT & G, the local tobacco company.

To this end, South Korea’s minister of health, Park Neunghoo, also cited mysterious outbreaks of lung disease related to electronic cigarettes in the United States, saying that the current situation is considered a serious risk to public health. The minister said children, teenagers, pregnant women and people with lung disease should never use electronic cigarettes, and people who do not smoke should never use electronic cigarettes. The minister also said the government will speed up research to determine whether there is a scientific basis for banning the sale of nicotine-containing electronic cigarettes.

South Korean government suggests people stop using vapes

Recently, the safety of electronic cigarette has attracted wide attention in many countries. At present, there are many kinds of electronic cigarettes, among which liquid electronic cigarettes are the most important kind, with a longer history of development and more users, especially in Europe and America.

Following recent cases of lung disease or even death in the United States caused by the use of liquid electronic cigarettes by consumers, there have been cases of suspected lung disease caused by vapes in South Korea. The South Korean government said Tuesday it would speed up research to decide whether to ban the sale of liquid e-cigarettes in an all-round way, and suggested that people stop using related products immediately.

Park Ling Hok, South Korea’s health and wellbeing minister, said the product posed a serious threat to public health as a result of recent outbreaks of lung disease in the United States caused by the use of electronic cigarettes.

Park also said that relevant departments will complete a study on harmful substances in liquid electronic cigarettes in November, investigate the health risks caused by the use of the product, and decide whether to ban the sale of liquid electronic cigarettes in the first half of next year.

On the 14th of this month, South Korea’s disease management department received the first case of lung symptoms such as cough and dyspnea caused by suspected use of vapes. The patient has continued to use liquid electronic cigarettes for the past six months. At present, the patient’s condition has improved after treatment.

Since this year, the Korean government has proposed a number of measures to ban smoking. On the one hand, it has restricted the advertising of tobacco companies. On the other hand, it has stipulated that warning pictures and words of smoking hazards must be printed on electronic cigarette packages. At the same time, it has banned retailers from selling electronic cigarettes to minors. These measures are expected to be formally implemented from next year.

Korea leaps to be the world’s second largest heat not burn market

After several years of development, Korea has become the world’s second largest market for heat not burn products, after Japan.

According to Euromonitor International’s latest data, the market value of heating not burning products in Korea reached US$1.67 billion in 2018, far exceeding US$453 million in 2017.

south korea

In 2018, the total size of the Korean tobacco market is 15.6 billion US dollars, and the growth is expected to be limited by 2023, but Euromonitor International said that the country’s heating not burning market is expected to grow by 21% annually and to reach 4.4 billion US dollars by 2023.

“In less than two years since Korea first introduced its heat not burn products, it has

become the second largest market in the world after Japan.”

vape export shuffle

Euromonitor International said in its report, adding that South Koreans are familiar with the use of new device and enthusiastic about high-end technology, so the country can achieve better-than-expected growth.

In response, Lee Oryoon, an analyst at Euromonitor International, a well-known international consultancy, said in an interview with reporters that in addition to the rapid growth of the market for heat not burn products, Korea’s electronic cigarette market has also witnessed substantial growth.south korea

South Korea’s closed pod system market is expected to reach $228 million in 2023, a significant increase over this year’s projected $40 million.

Lee Oryoon, Euromonitor International analyst, said: “Korea is an emerging market for pod system electronic cigarettes. After convenience stores begin selling e-cigarettes, the market is expected to grow at an amazing rate. These products attract young consumers in particular.

Korea’s e-cigarette market will reach 4.4 billion US dollars in 2023

According to the report of Korea Bizwire, the latest Euromonitor International data show that in 2018, the market value of heat not burn product in Korea reached 1.67 billion US dollars, far exceeding the $453 million in 2017, making it the second largest HNB tobacco market in the world.

In 2018, the total size of the Korean tobacco market is 15.6 billion US dollars, and the growth is expected to be limited by 2023, but Euromonitor International said that the country’s heat not burn market is expected to grow by 21% annually and reach 4.4 billion US dollars by 2023.

“Within less than two years of the first launch of heat not burn products in South Korea, the country has become the second largest market in the world after Japan,” Euromonitor International said in its report, adding that South Koreans are familiar with the use of new device and enthusiastic about high-end technology, so the country can achieve better-than-expected growth.

In addition, Korea’s electronic cigarette market is expected to grow substantially, at the same time the market for heat not burn products is also growing rapidly.

Euromonitor International said that South Korea’s pod system market is expected to grow substantially, reaching $228 million in 2023, a larger growth than this year’s estimated $40 million.

Lee Oryoon, Euromonitor International analyst, said: “Korea is an emerging market for pod system products. After convenience stores begin selling e-cigarettes, the market is expected to grow at a surging rate. These products attract young consumers in particular.

Korea’s HNB market share has grown rapidly, providing total tax revenue exceeding 10.7 trillion won

HnB devices, including PMI’s iQOS and KT&G’s lil, have soared to 11.8% of the total e-cig market in South Korean in the past two years.

HnB device is a battery-driven alternative to flammable cigarettes. Its working principle is to heat cigarette sticks containing tobacco leaves. These cigarette cartridges look like short cigarettes, which need to be inserted into the heater with the device on to heat the tobacco.

This product was launched in Korea only two years ago, but according to data released by the Ministry of Economy and Finance in December last year, cigarettes sold 288 million packs in November, of which 35 million packs were substituting products of HnB. This is equivalent to 11.3%, higher than 7.3% of the previous year.

HnB’s total tax revenue has reached 10.7 trillion won

Last December’s report added that Haiti’s National Health and Budget Bureau had accumulated sales of 295.5 million packs of substituting HNB cartridges, accounting for 9.3% of the tobacco market. Meanwhile, the total production and sales tax of all tobacco products in Korea is 10.7 trillion won ($9.5 billion), an increase of 2.6% over the same period in last year. Compared with the same period in 2014, the sales tax increase 63.9% sharply.

Further data released by the government show that HNB sales reached 92 million packs in the first quarter of this year in Korea, an increase of 34% over the same period last year. This is equivalent to an increase of 11.8% at the end of March, 2.2% higher than two years ago.

Korean Tobacco Giant KTG has Released the Latest LIL MINI Version Vape

Korean tobacco giant KTG has released the latest LIL MINI version heated not burn e-cigarette. A short and powerful vape. 

LIL e-cigarette is a kind of heated non-combustion e-cigarette produced and developed by KT&G, which is a local tobacco giant in South Korea. It has a compact and simple appearance design, an all-in-one machine structure, a single charge, and smoke a box of smoke bombs, without repeated charging, simple and convenient one-button operation features. Since the release in the overseas market, market feedback is excellent, and it is very popular among smokers.

It is reported that on October 3, KT&G released the latest version of the LIL MINI heating non-burning e-cigarette in Korea, which is much shorter in length and feels better.

South Korea’s Vape Exhibition in September 2018 is a Huge Success

South Korea’s e-cigarette exhibition in September, a successful ending – the topic of heating and non-burning

The Korea E-cigarette Exhibition was held in Hall 3 (KINTEX) from September 7th to 9th, and was jointly organized by Korea International Convention and Exhibition Center (KINTEX), The Fairs and Korea E-Cig Industry Association. Vape Korea Expo 2018 (2018 Korea E-cigarette Show) was successfully concluded in Korea on the 9th.

This e-cigarette exhibition is the first e-cigarette exhibition held in South Korea, attracting exhibitors from all over the world and today, we will introduce you to exhibitors who are heating and non-burning products.

These are two companies from South Korea’s low temperature non-combustible products, they are the first to appear in the Korean market.

Let’s take a look at the wonderful debut of China’s low temperature products.

Low-temperature products in the Korean market are very popular. Low-temperature cigarettes and products are available in supermarkets in South Korea and are available in convenience stores.

Vape Korea Expo2018 not only shows the amazing research and development results of e-cigarette brands from all over the world, but also shows the concept of people’s increasingly fashionable and healthy lifestyle. The event also promoted mutual learning and exchange between heat not burn products and other international e-cigarette brands. It is helpful to discuss the future development of e-cigarette industry together. I believe that in the era of looking forward to a healthy new environment, a healthy way of replacing cigarettes will surely usher in a booming development.