According to recent news, the European Commission (the permanent executive body of the European Union) is considering following the practice of the United States to restrict the sale of flavored e-cigarettes within the European Union. In fact, as early as January 2020, the U.S. FDA issued a ban on the production and sale of all peppermint and fruit flavored atomized e-cigarettes in the United States.
If the new proposal of the European Commission is passed, what impact will it have on China’s e-cigarette supply chain and manufacturers?
European countries are among the top ten e-cigarette exporters in China
According to the latest report of Foresight Research Institute, China is the largest producer of electronic cigarette equipment. China’s supply chain accounts for 95% of the global market share, of which more than 90% is for export, which is an irreplaceable important part of the global e-cigarette industry chain.
As we all know, different from many domestic industries, Chinese e-cigarette manufacturers have achieved global success with their original brands. With the maturity of the market, the upstream, middle and downstream markets began to integrate, forming the layout of the entire e-cigarette industry chain.
In 2019, 218 countries and regions in the world purchased e-cigarettes from China, with a total amount of 76.585 billion yuan, of which the United States is the largest market, accounting for 25.48%, with a total amount of 19.514 billion yuan. The Netherlands, Britain and Germany in Europe are among the top ten e-cigarette exporting countries in China.
Does the European Union follow the example of the United States to ban the sale of flavored e-cigarettes?
Because the vast majority of e-cigarettes are exported to foreign countries, it is particularly important for us to better understand the regulatory policies of e-cigarettes in various regions. Any regional policy change in some important markets will have an impact on the whole domestic industrial chain.
For example, the United States introduced a ban on the sale of closed e-cigarettes with special flavors (fruit flavor, etc.) last year. As China’s largest e-cigarette export market, the ban of the United States, coupled with the dual effects of the epidemic, has had a great impact on China’s e-cigarette industry.
As more and more countries have introduced policies to ban the sale of flavored e-cigarettes, perhaps due to the influence of these global trends, the European Commission also said that the agency is considering restricting the sale of flavored e-cigarettes within the EU. Although this type of “ban” will not directly prevent the import or sales of e-cigarette devices, due to the special popularity of fruit flavor, mint flavor and other e-cigarettes, the ban will certainly lead to a sharp decline in the sales of devices in Europe.
The European Commission should be aware that their actions in the region will not only affect the European e-cigarette industry, but also bring far-reaching negative effects on Chinese e-cigarette manufacturers and European e-cigarette suppliers, and even undermine their enthusiasm in promoting the reduction of tobacco use.
As a whole, the European Union is the second largest e-cigarette consumer market after the United States, and almost all e-cigarette products on the European market are made in China. Once the ban is implemented, it will undoubtedly aggravate the current situation of Chinese e-cigarette manufacturers. At present, the ban is still in the proposal stage.
In addition, the European independent e-cigarette Association (Ieva) also believes that the e-cigarette industry should indeed be regulated, but it can not be indirectly banned through taste restrictions. This practice of the European Commission is undoubtedly a “sanction” against the industry. The European independent e-cigarette association has always been committed to speaking on behalf of the participants in the industry, in order to achieve the goal of establishing a regulatory framework different from tobacco for the e-cigarette industry, and this time is no exception.
A recent survey conducted by the European independent e-cigarette association among members of the European Parliament shows that the vast majority of members have limited understanding of e-cigarettes and their differences from traditional tobacco. At the same time, the association is actively trying to publicize the correct information and data about e-cigarettes to members, so that they can understand the reality and not be misled when they formulate new laws and regulations.
Dustin dahlmann, President of the European independent e-cigarette Association, said: “today, 25% of Europeans still smoke cigarettes, and about half of them will die from diseases related to them.” At the same time, he added: “in addition to traditional tobacco control measures, encouraging smokers to use e-cigarettes as a less harmful nicotine delivery system could save tens of millions of lives.”
More than 80% of European smokers quit smoking after switching to e-cigarettes, according to a survey conducted by the European Union in October last year in Europe, where there are many smokers and second-hand smoking is rampant.
Just like all industries, the e-cigarette industry needs to be standardized in order to go forward in the long run, but any new proposal being studied by the EU should take into account the latest public health and related scientific data. Only in this way can an important industry develop while protecting public health. Instead of making the whole e-cigarette industry in Europe and Chinese e-cigarette manufacturers face the unprecedented challenges.
