"Chinese E-Cigarette Market Growing 48% Annually... Korean Companies Should Consider Entering"

Trade Association Chengdu Branch, Report on 'Current Status and Implications of the Chinese Electronic Cigarette Market'

[Asia Economy Reporter Kim Heung-soon] As more consumers in China choose electronic cigarettes to quit smoking, there is a call for Korean companies to actively consider entering the related market.

According to the 'Current Status and Implications of the Chinese Electronic Cigarette Market' published on the 7th by the Korea International Trade Association Chengdu Branch, the consumption of electronic cigarettes has increased mainly among Chinese men, with the market size growing from 550 million yuan in 2013 to 8.38 billion yuan in 2020, expanding at an annual rate of 47.6%. It is expected to surpass 10 billion yuan this year.

Data provided by Korea International Trade Association

In China, electronic cigarettes are mainly sold offline through specialty stores in large shopping malls or flagship stores in central urban commercial areas. Despite the inconvenience of purchase, the main reasons for using electronic cigarettes were identified as 'reducing nicotine dependence' (55%), 'variety of flavors' (46%), and 'alleviating withdrawal symptoms' (38%). Additionally, more than half (52%) responded that electronic cigarettes help with quitting smoking.

Seventy-three percent of electronic cigarette consumers were male, and by age group, consumers aged 26 to 35 accounted for 57.8% of the total. Preferred product types were 74.1% for heated tobacco products and disposables, which are reusable and convenient to carry, and 25.9% for liquid-type products, which have a relatively longer usage period and are compatible with other brands.

Go Beom-seo, head of the Korea International Trade Association Chengdu Branch, said, "Although government regulations in China pose some obstacles, the usage rate of electronic cigarettes is very low compared to the total number of smokers, indicating significant market potential." He added, "By closely monitoring policy changes and focusing on consumer preferences for convenient heated tobacco products, it is worth considering entry into the Chinese market."