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The US e-cigarette market is shrinking, will Germany be the next one-time stock market?

The US e-cigarette market is shrinking, will Germany be the next one-time stock market?

2022-06-25

On Thursday, U.S. time, the U.S. Food and Drug Administration issued a Marketing Denial Order (MDO) to JUUL Labs Inc. for all of its products currently sold in the U.S. It means that JUUL, the self-owned brand from the United States, will withdraw from the American market. Will the ending of high opening and low walking affect the pattern of the entire American electronic cigarette market? Will disposable products still be the main force in the future? The United States also has a vague attitude towards flavored electronic cigarettes in various states, which has accelerated the FDA's rectification and control of the disposable product market sooner or later. It can also be seen from the just-concluded British and Dubai electronic cigarette exhibitions. American companies have begun to accelerate the deployment of emerging industries. In the market and the European market, Mr. TONY, President of the American Electronic Cigarette Association, also appeared at the Dubai Exhibition Electronic Cigarette Exhibition. Is the rise of Europe and emerging markets a new piece of cake?


Germany, one of the best countries for vaping, passed the Tobacco Tax Modernization Act, which will add additional taxes to e-liquids. The tax starts at €0.16 per milliliter on July 1, 2022, and reaches €0.32 per milliliter on January 1, 2026.


The bill updates taxes on all forms of nicotine, not just e-cigarettes and liquids. IQOS is contained in its own section under Heated Tobacco. Hookah creams will also be taxed, and rates on cigarettes, cigars and other forms of tobacco are increasing in general. E-cigarettes and HNB are included and classified as "cigarette substitutes".


Taxing e-liquids by volume means that 0mg e-liquids or nicotine-free e-liquids will also be taxed as nicotine products. Although this seems counterintuitive on the surface, the reason is probably that after the TPD, vape flavored electronic cigarettes will become the norm in EU sales, and it is also an important factor in the future rise of Europe. The management of electronic cigarettes brings a favorable and benign order.


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