Interview with EVO NXT Sponsor: European NGP Market is Flourishing

On April 5th, Malaga, Spain will welcome the new tobacco exhibition EVO NXT. As the official media partner of the exhibition, 2FIRSTS will provide full coverage and highlight reports. With less than a month to go before the exhibition begins, 2FIRSTS has conducted an exclusive interview with the organizers of the event in order to showcase the current situation of the Spanish tobacco market and provide an overview of the upcoming exhibition to exhibitors and readers in advance.

The following is the content of the interview:

2FIRSTS: Please provide a brief overview of the EVO NXT exhibition, including its history, purpose, and scale.

EVO NXT: EVO NXT is an event in the Next Generation Products (NGP) tobacco industry, characterized by a modern, innovative, and experiential approach. Unlike traditional trade shows, it sets a new standard as a business celebration that combines well-known exhibitors and entertainment in a unique way through inspiring brand displays and attention-grabbing side events. The success of last year's debut proved the concept, as it was the industry's first attempt at this format.

2FIRSTS: What plans and strategies does EVO NXT have in place to promote the sustainability and growth of the e-cigarette market? How does EVO NXT ensure the participation of high-quality exhibitors and attendees?

EVO NXT: We have received support from senior industry partners, including the Global Aerosol Alliance and associations such as Tobacco Asia, Tobacco Intelligence, and Next Tröber Europe. Their industry expertise has greatly enhanced the preparation and execution of EVO NXT, whether as exhibitors or content contributors. They played a key role in delivering exciting shows and top-notch speakers on site. This high level of professional knowledge attracted other top exhibitors and numerous interested trade visitors, making this event an ideal platform for partners to showcase products and businesses to a wide audience.

2FIRSTS: What is the current state of the NGP market in Europe? How do you assess the growth of the NGP market in Europe and the changes in consumer behavior over the past few years?

EVO NXT: The importance of NGP in the European market is gradually increasing, with both smokers and non-smokers increasingly leaning towards these products. This growing acceptance and usage reflects a strong demand for alternatives to traditional tobacco products and clearly indicates a significant shift in consumer behavior. The diversity of product types is attracting more consumers, with a variety of flavors, nicotine strengths, and designs meeting customer needs and expectations. As a result, the European NGP market has seen strong growth. Despite facing some challenges, particularly in terms of regulations, we are optimistic about the future and expect significant growth in the European market in the coming years, with a more diverse range of products. This was confirmed at the first EVO NXT event, and a glimpse of the current list of exhibitors and support plans for the upcoming exhibition also confirms this.

2FIRSTS: What are the main regulatory changes and policies in European countries regarding NGP?

EVO NEXT: The NGP industry is currently in a state of constant change, with new trends and innovations entering the market at a rapid pace. As a result, policymakers are currently ramping up the introduction of numerous regulations, primarily focusing on consumer rights and protection. This is something we naturally welcome.

A typical example is the Tobacco Products Directive TPD3, which is receiving a lot of attention and includes multiple regulations for waterpipe tobacco, e-cigarettes, and related products, including requirements for traceability in production. Manufacturers must ensure their products comply with these new requirements and provide detailed information to relevant authorities. Similar regulations are quickly being introduced, such as the recent UK government ban on disposable e-cigarettes and measures to restrict young people's consumption. This includes restrictions on flavor varieties, plans for standardized packaging, and regulations for the display of related products in stores. The UK government is also working towards banning the sale of tobacco products to those born after January 1, 2009, in order to achieve a smoke-free generation.

The Spanish government has previously decided to adjust regulations on heated tobacco products to align with the current laws for traditional cigarettes starting in April 2024, including a ban on flavors and additives. Similar warning labels will also become mandatory, similar to regulations that came into effect in Germany in October 2023. However, these measures do not apply to e-cigarettes.

2FIRSTS: From the perspective of EVO, what notable trends in product innovation are worth noting in the NGP market in Europe? Considering the latest technologies and market trends, what are your predictions for the development of the NGP market in 2024?

EVO NXT's "2024 Aerosol Industry Products and Technology Trends" report summarizes the biggest trends in the global market for the year 2024. The report highlights a growing focus on aligning consumer demands with new regulatory requirements, which requires innovation more than ever. In Europe's major NGP markets, there is a push to move away from disposable e-cigarettes favored by consumers towards more sustainable and durable materials and products. It is expected that user-friendly open pod systems and powerful e-cigarettes will capture significant market share as a result. Customers are also seeking more and better flavors. In addition to e-cigarettes, EVO NXT's four regions are also platforms for other exciting trend products, such as the Green Zone focusing on cannabis. The impending legalization of cannabis in Germany is a clear signal of potential growth in this area for the industry. The O-Zone also encompasses all products for oral and nasal consumption, as consumer interest in products like nicotine pouches is notably increasing in this country. These two trends are also integral to supporting initiatives related to protecting minors and sustainability.

2FIRSTS: As regulations and public health needs continue to increase, how do you think this industry will adapt and evolve?

The tobacco industry is currently undergoing a profound transformation, largely shaped and driven by NGPs. Despite increasing regulatory requirements, the industry sees these challenges as opportunities to reshape the market. Policymakers play a crucial role in creating a balance framework that both protects consumers and promotes innovation. Consumer and underage protection are of course important, but the interests of manufacturers must also be taken into consideration. Therefore, regulatory measures should be based on scientific evidence and not overly restrict the development and commercialization of NGPs. Additionally, banning popular NGPs can be expected to contribute to a black market of these products. This would cause significant harm to both policymaking and the industry itself, and should not be the aim of regulations.

2FIRSTS: What market challenges could impact the development of the Next Generation Products (NGP) industry?

The challenges shaping the industry in the future are multifaceted, and the development of the industry in the coming years will be influenced by various factors. This includes government regulations discussed earlier. Secondly, consumer behavior continues to change due to general trends such as increased health and environmental awareness, as well as new opportunities provided by Next Generation Products (NGP) for consumers. Additionally, technological innovation, intense competition, and new scientific discoveries will also impact the industry. All of these require companies to have a high degree of flexibility. Only those companies that can adapt to these challenges and provide the right solutions will be able to maintain success in the long term.