TPE24: What Insights are Revealed About E-cig Market?

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On January 29, 2024, the UK, the world's second-largest e-cigarette market, announced a ban on disposable e-cigarettes, causing shock in the industry and leading to a sense of pessimism in the UK market. However, just two days later, across the Atlantic, the world's largest market, the United States, hosted the grand TPE24 Tobacco Show. This exhibition brought together over 200 e-cigarette companies, showcasing the innovation and vitality of the American market.

Before the TPE24, 2FIRSTS traveled to the United States to conduct research on the markets in Los Angeles and Las Vegas. During the exhibition, 2FIRSTS went on-site to directly connect with reputable distributors and e-cigarette companies, obtaining firsthand market information to gain a better understanding of the latest developments in the American market and explore future trends.

New Products: Touchscreen, High Resolution, and Transparent Tank

As the world's largest market, the United States is not only a trendsetter in the e-cigarette industry, but also the market with the highest level of innovation, leading the global market development. At this trade show, the new products introduced by e-cigarette companies fully showcased this characteristic of the American market - a wide range of products and limitless creativity.

One month before the trade show, e-cigarette brand RabBeats announced the launch of the industry's first touch screen e-cigarette on its distributor website, revealing that the product would make its debut at TPE24. This product immediately sparked widespread interest in the industry. At the TPE24 tobacco exhibition one month later, not only RabBeats, but also many other well-known brands introduced their own touch screen e-cigarettes, such as LOST VAPE, IJOY, and more.

The touch screen e-cigarette undoubtedly became the most innovative and pioneering new product of 2024. However, this innovative product has not yet been market validated at retail terminals. In contrast, the product that laid the foundation for this development trend—GEEKBAR's "hot-selling" large screen e-cigarette—has received positive feedback in the market, attracting numerous manufacturers to follow suit. Therefore, at this exhibition, most manufacturers brought large screen e-cigarettes, making it the most mainstream product.

In addition to innovative designs, the puff counts of American e-cigarettes are continuously increasing. By early 2023, high puff count e-cigarettes in the American market were generally between 5000-7000 puffs. By mid-2023, thanks to the "dual-core" technology, high puff count e-cigarettes were able to easily surpass 10,000 puffs. From observations at this trade show, there have been new breakthroughs in puff counts - some companies showcased e-cigarettes with puff counts of 25,000-30,000, and Konka's brand Olit launched a product with a puff count of 30,000 and e-liquid content as high as 40ML. Additionally, MOTI and GEEKBAR also released products with puff counts of 20,000.

In addition, in November 2023, the Canadian brand NVZN broke through the technology of leak-proof transparent oil tanks and launched the "Pure Oil" (transparent tank) product. This innovative product has also attracted widespread attention in the industry, and the Pure Oil product is gradually gaining prominence. At the TPE24 exhibition, the well-known British disposable brand SKE showcased transparent-tank products, further highlighting this innovative trend.

Distributor: Not Optimistic about Long-term Development of Large-screen E-cigs

The e-cigarette market in the United States has always been dynamic, with one of the most dynamic aspects being the collaboration with distributors. Through communication with several well-known distributors in the United States, such as 2FIRSTS, it was found that American distributors work with a wide range of brands, typically between 200 and 600, with the well-known e-cigarette distributor DemandVape offering nearly 30,000 SKUs related to e-cigarette products.

When discussing selection criteria, Noel, the Marketing Director of Empire Imports, stated that when choosing partners, brand, price, and exposure are the main factors to consider. The company typically does not choose brands with low visibility.

Distributors have revealed that when it comes to choosing products, design is also an important factor to consider. According to Noel, a good product must have both visual appeal and a comfortable grip. Furthermore, he emphasizes that products not only need to ensure quality and taste, but also need to focus on marketing. He believes that even if a product is excellent, it will struggle to succeed in the market without sufficient marketing efforts. Providing free samples at trade shows is considered an effective promotional strategy.

When it comes to large screen and touchscreen e-cigarettes, some distributors have expressed that while these products are currently popular, the market may gradually shift back to basic e-cigarettes due to their larger size and higher price.

Several British disposable e-cigarette brands, such as SKE, ELUX, and GOLD BAR, participated in the exhibition, exploring the American market. Prior to the exhibition, the UK banned disposable e-cigarettes. In light of this, 2FIRSTS asked distributors for their opinions on these brands. Some leading distributors expressed strong interest in collaborating with them.

Regulations Becoming Stricter as Some Distributors Turn to Hookah and CBD

In 2023, the US e-cigarette market is facing increased regulation. The FDA is frequently issuing Marketing Denial Orders (MDOs) and customs at airports are intensifying enforcement. Unlike TPE23, many American e-cigarette exhibitors at the PMTA were found to have insufficient knowledge of PMTA and were not even aware of its existence. However, one year later at the TPE24 exhibition, industry participants showed a significantly increased awareness of PMTA and felt the impact of stronger regulations.

It is worth mentioning that at TPE24, the FDA actively participated in the trade show, educating e-cigarette companies on regulatory knowledge, promoting key policies in e-cigarette regulation, and guiding e-cigarette companies to sell compliantly. However, it is concerning that in early 2024, the FDA has been issuing Marketing Denial Orders (MDOs) frequently to e-cigarette companies, resulting in the prohibition of multiple products from well-known brands such as blu and SMOK.

In a conversation with exhibitors at the trade show, it was revealed that American industry professionals are generally feeling the trend of increasing regulation. The well-known American distributor, Happy Distro, stated that while the industry must adapt positively to existing regulatory measures, they can support the American e-cigarette association in lobbying for their interests in legislation regarding uncertain regulatory measures. The Chinese renowned vaping technology brand FEELM believes that regulatory measures are not necessarily a bad thing, and can indirectly promote the evolution of the entire industry. They point out that once regulations are implemented, new products and technologies will quickly emerge.

During a visit to the California market by 2FIRSTS, it was found that the sale of e-cigarettes is being hindered due to regulatory reasons. Some wholesalers stated that, due to the products being detained by customs, they are currently only able to sell existing inventory.

In addition, due to the taste ban in the state, some shops have chosen to stop selling disposable e-cigarettes and instead switch to selling open or refillable e-cigarette products, or only provide devices. Some shops are even adjusting to market changes by no longer selling e-cigarettes and focusing on shisha, CBD, and other products.

In addition, following the end of the exhibition, 2FIRSTS successfully hosted the TPE sharing event on February 6th. During the sharing session, 2FIRSTS' global executive editor Yuna Hou and the US team discussed the highlights of the exhibition and delved into important topics such as product trends and policy directions in the American market.

The sharing session has successfully concluded. To thank participants for their support, 2FIRSTS is now launching membership benefits. Purchasing a membership will provide access to a comprehensive summary of exclusive information, electronic lecture notes, and contact information for 20 on-site distributors. For more information and registration details, please scan the QR code below to contact 2FIRSTS staff.