Electronic atomization cigarettes are very popular around the world, and the e-liquid industry has good development prospects.

Electronic cigarettes currently on the market can be divided into electronic atomization types and heat-not-burn types. Electronic atomization products require adding e-liquid to the atomizer, and the e-liquid is heated to form tobacco-flavored smoke for smokers to use. Our country’s smokers rank first in the world, and the current number of smokers has exceeded 300 million. However, the penetration rate of e-cigarettes in the domestic market is low, only about 1.5% in 2021.

Although the penetration rate of electronic atomization cigarettes in the domestic market is low, my country is the world’s major producer of electronic atomization cigarettes, accounting for more than 90% of its output, of which about 80% is exported to European and American markets. In electronic cigarettes, the battery and atomizer are the core, and e-liquid only accounts for about 12% of the cost. The main ingredients of e-liquid are propylene glycol, glycerin, flavors, nicotine, etc. Due to different added ingredients, Chinese e-liquids have a rich variety of flavors, mainly mango, mint, mung bean, ice cream and classic tobacco flavors.

According to the released “2021-2025 China E-cigarette Oil Industry Market Supply and Demand Research Consultation Report” shows that the global tobacco market is relatively huge. In recent years, with the policy support of various countries and residents’ pursuit of healthy smoking, the penetration rate of new tobacco markets has continued to increase. E-cigarettes accounted for about 5% of the market in 2019, and are expected to account for about 10% by 2025. The global e-cigarette market is expected to reach US$120 billion in 2025. It is estimated that the global e-cigarette oil market will reach US$14.4 billion in 2025.

E-cigarette oil is a necessity for electronic cigarettes, so the market demand pattern is consistent with that of electronic cigarettes. Globally, the United States is the main market for e-cigarettes, accounting for about 60%, followed by the European Union and the United Kingdom, accounting for 20%. Although my country is the main producer of e-cigarettes, due to policy restrictions, the current market penetration rate is low, and the demand for e-liquid is also low. After recent years of development, my country’s e-cigarette policy has become increasingly clear, and the market penetration rate is expected to gradually increase, which will benefit the development of the e-liquid industry.

The production of e-liquid requires a long period of raw material ratio experiments, and there are high technical barriers to the development of flavors. There are many e-liquid manufacturers in the world, and they have produced tens of thousands of varieties. However, there are few flavors that are actually common in the market, and the potential for flavor application in the future is huge. Currently, the more well-known e-liquid production brands overseas include V2 and Halo; well-known e-liquid brands in China include Dekang Biology, Hengxin Technology, Fanhuo Bioscience, etc.

Industry analysts said that e-liquid is a consumable and necessity for e-cigarettes. With its popularity around the world, the market demand for e-liquid continues to rise, and the industry has developed rapidly. At present, the United States is the main market for e-cigarette oil. The popularity of e-cigarettes in my country is low, and there is currently little demand for e-cigarette oil. In terms of production, there are various types of e-liquid flavors, there are many manufacturing companies around the world, and the market competition is fierce.