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South African e-cigarette market report: growth rate of 10%, prices stabilize

South African e-cigarette market report: growth rate of 10%, prices stabilize

2022-08-11

With the introduction of different measures for electronic cigarettes in various countries and regions around the world, the overall situation of the electronic cigarette market has also undergone tremendous changes. For example, the United States, the world's largest consumer market, has been greatly affected by PMTA, and my country's largest producer and exporter of electronic cigarettes has also been affected by regulatory measures. Therefore, many brands have sought new markets one after another, and information reports from various places have also attracted the attention of the industry.


Recently, ResearchAndMarkets.com released a "E-Cigarette Market Report: South Africa", which provides an overview and forecast of the e-cigarette market in South Africa.


The content of the report shows that the market share of e-cigarettes in South Africa in 2021 is 10% higher than that in 2020, which the report attributes to the increasing popularity of disposable e-cigarettes in South Africa. Local independent e-cigarette retailers in South Africa are currently optimistic about the future, but retailers are also worried about the possibility that the government may introduce regulatory measures to further control e-cigarettes.


South African Deputy Minister of Health Joe Phaahla first announced the new Tobacco Products and Electronic Delivery Systems Control Act 2 years ago in May 2020. Although the Act is still going through the review process, over time, It's more and more likely to become a bill. Once passed, the bill would ban smoking in all public places and introduce stricter regulations on e-cigarettes, including restrictions on the use, marketing and sale of certain tobacco products. In addition, the bill will also include a provision allowing the government to implement a "100% public cigarette ban", which means that all public places will be completely smoke-free, including e-cigarettes.


In addition to this, in January last year, South Africa’s National Treasury published a discussion paper outlining plans to tax nicotine-containing vaping products. Unlike traditional tobacco products, products such as e-cigarettes are currently mostly unregulated in South Africa, so the Ministry of Health has also begun to amend existing tobacco control legislation to include these products in the regulatory framework. Market report analysis shows that governments in other countries around the world have begun to regulate the consumption and use of e-cigarettes through tax and non-tax measures, and South Africa is likely to refer to these measures to introduce its own e-cigarette regulatory measures.


The taxation and regulation of e-cigarettes in South Africa has been open for comments until January 25, 2022, with a clear proposal to tax devices and e-liquids/pods based on nicotine content levels.


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