As Vaping Grows in Popularity in China, the Market for E-Cigarettes Is Booming
Article

As Vaping Grows in Popularity in China, the Market for E-Cigarettes Is Booming

36Kr, 2019

Editorial Rating

8

Qualities

  • Analytical
  • Applicable
  • Engaging

Recommendation

Using e-cigarettes, or vaping, has become a global sensation. Juul, America’s top vaping company, has made a whopping amount of money in a short period of time. China’s businesspeople watched in awe and dug into the market to tap this new well of wealth. Writing for 36Kr – which provides entrepreneurial information, tech news and financial services – Liu Shiwu, Wang Mei and Si Qi examine the current state and prospects of China’s e-cigarette market. They conclude that no Chinese company will be able to emulate Juul’s success. Also, regulations will determine the trajectory of the e-cigarette market in China and elsewhere. The US Food and Drug Administration is investigating the industry and zooming in on Juul, and some Chinese cities are banning vaping in public areas.

Summary

Electronic cigarettes – battery-powered devices that convert liquid into a vapor that users inhale – deliver nicotine and mimic the physical and sensory experience of a cigarette. They come in a variety of flavors, appealing to different tastes. California-based brand Juul is extremely trendy in the United States. Its e-cigarettes feature frequently on social influencers’ Instagram posts. The brand dominates America’s e-cigarette industry with 68% market share. At the end of 2018, headlines about Juul went viral in China when the company distributed a staggering annual bonus to its 1,500 employees: an average $1.3 million per person in the form of stock options.

Chinese investors are chomping at the bit. Investment organizations and start-ups are...

About the Authors

Liu Shiwu, Wang Mei and Si Qi are writers for 36Kr. Founded in 2010, 36Kr provides entrepreneurial information, tech news and financial services.


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