Move to the Middle East e-cigarette market for new gold – Leave U.S. and embrace UAE

When the vape panic storms in the USA come, try to get a shelter in the UAE.

UAE vape policy:

Before 2019, selling electronic cigarettes in Dubai was also illegal; in April 2019, the Emirates Government Consumer Supervision Agency, the Emirates Standardization and Measurement Authority (ESMA), confirmed the new regulations for electronic cigarettes: as long as the manufacturer’s electronic cigarettes meet the new standards and carry health warnings similar to cigarette packages on the product packaging. Notice first then they can legally sell electronic cigarette products.

UAE.S 5030 refers to international practice and is based on the standard framework of the World Health Organization (WHO). The regulations include allowing the sale of electronic cigarettes, electronic pipes, electronic hooka and rehydration devices, and regulating the import, manufacture, sale and packaging. It also covers the heat not burn device IQOS of PMI and other non-combustible tobacco products.

The legalization of e-cigarettes in the United Arab Emirates is good news for e-cigarette enthusiasts. Especially in tourist attractions like Dubai, the lifting of the ban is a lot easier for foreign tourists. Policy changes bring huge business opportunities for manufacturers and retailers.

UAE

Policy in other countries

USA

On September 12, U.S. President Donald Trump announced that his government plans to ban flavor e-cigarettes after a series of health incidents related to vaping. (There is no conclusive evidence that e-cigarettes are the cause of health incidents.)

U.S. Health Secretary Alex Azar said the U.S. Food and Drug Administration (FDA) will finalize a plan to remove all non-tobacco-flavored products from the market. Michigan became the first state in the United States to ban condiment electronic cigarettes in the last month. Azar said he would distribute new guidelines on e-cigarettes to the FDA in a few weeks.

When the United States has entered the election season, the Trump Administration showed concern for national security and health, even though there is no definite evidence that e-cigarettes cause these diseases. In a politically correct direction, the FDA’s stricter regulatory measures are basically settled down.

In addition to the high cost of PMTA applications, the U.S. e-cigarette market has been able to predict a sharp contraction in the short term. We anticipate that the corresponding lobbying forces will begin to be active, and it is not yet possible to predict when a relatively friendly policy will be restored.

Malaysia

Malaysia, before the popularity of electronic cigarettes, the Malaysian government cracked down. I remember at the end of 2013, the market was very hot. The Malaysian government intervened in the electronic cigarette market by means of administrative orders. At that time, the main media and TV reported the negative news or even false news of electronic cigarettes on a large scale. The electronic cigarette market was soon greatly affected.

More than a year later, more people buy electronic cigarettes. On November 5, 2015, the Ministry of Health of Malaysia launched a lightning campaign against electronic cigarettes. It raided more than 300 electronic cigarette stores in Malaysia at night, seized electronic cigarettes and oil products, and treated electronic cigarette practitioners as criminals. The market dropped to freezing point in a moment of panic. After all kinds of interests entanglement and compromise, the electronic cigarette market in Malaysia is in the golden period of development after the legalization of electronic cigarettes.

Thailand

In this regard, Thailand has tighter control over electronic cigarettes! Electronic cigarettes can not be sold, used or carried. Carrying, buying, selling and using electronic cigarettes are all illegal in law.

Carry and use electronic cigarettes, up to five years’imprisonment, a fine of 500,000 baht (100,000 yuan); import, export and sale of electronic cigarettes, up to 10 years’ imprisonment.

usa

Consumption level

Generally speaking, income and demand are positively correlated, that is, the higher the income, the more the demand for goods, because higher income represents higher purchasing power and payment capacity, while demand is constrained by payment capacity.

Speaking of consumption level, there is no need to worry about UAE at all. Because when it comes to Dubai, many people think its rich men. Many Chinese also choose Dubai when they travel. They want to see rich’s country?

Dubai Halifah Tower, Sailing Hotel and so on, with high-rise walls and splendid, have been called the miracle city of the desert. Every day, it attracts a large number of tourists. Finance, retail, travel, shipping, transportation and real estate are the main economic pillars. The world’s largest Dubai mall is even more valuable, attracting tourists from all over the world.

The average per capita income in Dubai is $76752. There are also reports that the standard monthly income of the poor in Dubai is not less than 20,000 dirhams, and 1 Dirham is equivalent to 1.93 yuan. From this we can intuitively feel the pride of this rich country!

UAE vape habbit

Consumption habit

With policy support and high consumption, do local people in the United Arab Emirates and the Middle East smoke? Are there many smokers?

According to WHO data, in the United Arab Emirates, where there are about 10 million people, smoking rates are as high as 25% to 30% for men and 0.7% for women. The UAE adults smoke 583 cigarettes a year on average, ranking 82 in the world.

The traditional tobacco market and trade are very active. Many religious people need tobacco very much. The local tobacco products are mainly imported.

Especially local people love hooka smoke. Hooka often becomes a way of leisure and social intercourse. There are many in streets and alleys. At sunset and dusk, or in smoking parks, bars, or lounges, these places are crowded with people who enjoy their time. The unique fragrant fruit flavor of hooka cigarette has even won the favor of many women.

From the social elite to the masses, no matter young or old, they are all immersed in it.

As a new type of tobacco, especially fruit-flavored mint and ice, electronic cigarettes are also in line with the preferences of smokers in the Middle East to a large extent, and electronic cigarettes are easier to carry than hooka cigarettes, which has led to the rise of the consumption boom of electronic cigarettes.

Now, with the legalization of the e-cigarette market, a large number of consumers turn to e-cigarettes or heat not burn products. Recent data show that the electronic cigarette market in the Middle East is growing very fast.

dubai

Geographic advantage

Dubai, located in the middle of the Middle East, has a strong geographic advantage. It covers an area of 4114 square kilometres, accounting for 5.8% of the total area of the United Arab Emirates, ranking second in the country after Abu Dhabi. The population is 3.1 million (April 2018), accounting for 41.9% of the country’s population, which is the most populous city.

With a free and open market environment, Dubai is an economic and financial centre in the Middle East and a major transportation hub for passengers and goods in the Middle East. Oil revenue contributed to Dubai’s early development, but due to limited reserves and low production level, the oil industry accounted for less than 5% of Dubai’s gross national product after 2010. At present, Dubai’s economy relies mainly on tourism, retail, aviation, real estate and financial services.

As the first country in the Middle East to legalize e-cigarettes, Dubai is expected to become the logistics and wholesale center of the Middle East e-cigarettes market on the basis of its favorable geographical position and policy support.

WAYJOY, the organizer of Dubai Electronic Cigarette Fair from March 20 to 22, 2020, said that next May will be the peak season of purchasing in Dubai in the first half of the year. In order to meet the consumption needs of products for Eid al-Fitr, we anticipate the peak season of purchasing in early May. About May 10, local channels will start large-scale shop and prepare for the retail of Eid al.

As the electronic market in the Middle East is still in a period of barbaric growth, laws and regulations are being gradually improved. According to non-authoritative statistics, the sales of electronic cigarettes in the Middle East market amounted to $400-600 million. If laws and regulations follow-up measures are fully in place, Dubai local distributors believe that the market sales are expected to triple to the present.

For e-cigarette enterprises, the Middle East e-cigarette market contains tremendous business opportunities, and is an important place to diversify risks and expand overseas business. Opening up the Middle East market is urgent and early birds acquire most profits!

iqos

Giant push

According to public information, IQOS heat not burn products under Philip Morris International have entered the Dubai market, selling well through duty-free shops, supermarkets and supermarket chains at Dubai’s international airport, and carrying out strong advertising campaigns at Dubai airport.

IQOS has obtained ESMA certification and is currently the only product that has been certified by ESMA in the Middle East market.

WAYJOY, the organizer of Dubai vape expo, said that the ESMA authorities designated three international certification bodies, SGS, RACS and TUV, to be responsible for product certification.

In addition to PMI, JUUL, British and American Tobacco are also vigorously expanding the local market. Now in the whole Middle East market, the products are mainly pod systems, including disposable vape pens, box mods, pods. The main brands are STIG-VGOD, VAPERESSO, SMOK, MYLE, TUGBOAT and so on.

Currently in Dubai, tobacco appliances and smoke are listed as tobacco standards for control, the use of regional control is consistent with tobacco, shopping malls, medical facilities, schools and other areas prohibit the use of electronic cigarettes. The editor reminds all friends that the fine of 2000 Dirham is not worth mentioning for rich Dubaier, but the equivalent of RMB is close to 4000 yuan, not a small amount.

Verdict

According to the above elaboration, the U.S. electronic cigarette market ban will bring different impacts on the global regional electronic cigarette market. All electronic cigarette enterprises are facing tremendous market pressure. It is urgent to find a new alternative market.

Especially in the relatively blank period of electronic cigarette market in the Middle East, the first-to-market enterprises will have tremendous first-mover advantages. They will take the first step to establish brands and channels, so as to reap early dividends in the development of the industry and lay the market foundation at one stroke.

Dubai World Vape Show

WAYJOY VAPE EXPO / Dubai International Vape Expo

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