Against the backdrop of white-collar workers in London's financial district using vaping devices and factories in Bao'an Shajing operating around the clock, the global e-cigarette industry is undergoing unprecedented transformation.
According to Juyi Information Consulting, the global e-cigarette market is projected to exceed $30 billion by 2025, with technological innovation contributing 47% to this growth, while policy variables now account for 32% of influencing factors.
Faced with new industry trends driven by AI, sustainable transformation, and personalized experiences, how can established giants and new players gain an edge in this competitive landscape? I believe three key strategies are crucial.
First Strategy: Tool Evolution – AI Redefines Marketing and User Insights
Traditional marketing content development often involves long cycles, struggling to keep pace with emerging trends like e-cigarette popularity. However, this dynamic is changing.
AI's value extends beyond content generation. At the 2025 Dubai e-cigarette exhibition, ZMR unveiled an AI-powered vaporizer with built-in biosensors that monitor heart rate variability and generate personalized harm reduction plans.
For e-cigarette companies, large language models and data mining technologies have become the "new engine" for sales strategies. The tobacco industry's sales channels are undergoing digital fragmentation, where relying solely on experience and broad management can no longer handle the pressures from channels, consumers, and regulations.
Leading companies are leveraging AI to intelligently manage customer segmentation, channel optimization, content recommendation, and risk warning. Reports indicate these technologies can significantly enhance marketing efficiency and shorten decision-making cycles.
VAPEPIE recent release of its first batch of AI application scenarios confirms this trend. Covering areas like basic marketing Q&A, product specifications profiling, and customer profitability prediction, these applications are driving digital transformation across the entire business process.
Second Strategy: Pivoting for Growth – Finding New Growth Curves
The e-cigarette industry has shifted from wild growth to technology-driven, high-barrier competition. Risks associated with single product categories are intensifying, making diversification a moat for leading companies.
Sustainable Transformation: From "Single-Use" to "Circular Economy"
Environmental compliance is evolving from a marketing gimmick to a survival imperative. Confronted with billions of disposable e-cigarettes discarded globally each year, leading brands are taking action.
VAPEPIE upgraded its disposable hit product, the VAPEPIE 10000, into a rechargeable, pod-replaceable version, directly extending the device lifespan by over five times. ELFBAR introduced the EW9000 hybrid solution—a disposable pod with a detachable battery compartment—balancing convenience and eco-friendliness.
Category Expansion: Blurring Boundaries and the Rise of Alternative Nicotine Products
The industry is transitioning from solely e-cigarettes to "comprehensive harm reduction platforms." Nicotine pouches are experiencing explosive growth, with the global market surging from $5.17 billion in 2024 to $6.73 billion in 2025, a 30.1% increase.
British American Tobacco's (BAT) H1 2025 results reflect this trend: its modern oral nicotine business revenue reached £470 million, a 38% year-on-year increase, with US sales volume growing by 206%.
By July, its Velo brand had captured 17% market share in the oral nicotine segment, becoming the fastest-growing brand with a repurchase rate as high as 70%.
Personalized Customization: From "Passive Acceptance" to "Active Design"
Adjustable technology has become a battleground for top brands, redefining product differentiation standards. The ELFBAR King series became the industry's first device supporting three-dimensional adjustment of coolness, sweetness, and acidity, allowing users to customize flavor like blending perfume.
The VAPEPIE 40000, through its low-resistance atomizer core, expanded e-liquid compatibility, accommodating diverse flavors from refreshing fruits to rich tobacco. This personalization trend is shifting users from "trial purchases" to "brand loyalty," with the open-system device market expected to grow by 24% in 2025.
Third Strategy: Global Mindset with Local Execution – Becoming a 'Glocal' Enterprise
"Global vision, local execution" has become the core strategy for e-cigarette companies expanding internationally.
Emerging Markets: Policy Shifts Unleash Growth Potential
Southeast Asian markets like Indonesia and the Philippines, with relatively open policies, saw rapid year-on-year shipment growth in H1 2025.
The Middle East, leveraging its young demographic, became the world's fastest-growing regional market. Furthermore, Africa, with a population of 1.3 billion including over 120 million smokers, currently has low e-cigarette penetration.
Deep Localization: Moving Beyond Being a Mere 'Product Supplier'
In Indonesia, a market with over 270 million people and a high proportion of Gen Z, Chinese brands face the challenge where channel dominance often outweighs brand power.
Local channels are highly cautious, preferring brands that already have market heat and high user acceptance.
Supply Chain Globalization: Optimizing Global Production Capacity
Amstid ongoing US tariff policy escalations, Chinese e-cigarette enterprises face multiple challenges: soaring export costs, supply chain restructuring, and restricted market access.
The Future Belongs To: Companies proficient in technology, possessing global vision, and committed to sustainable development.
The e-cigarette industry is shifting from "product competition" to "ecosystem competition." The power to set technical standards, influence regulatory frameworks, and drive sustainable development forms the core competitive triangle for businesses.
Competition in the e-cigarette sector is entering a new phase. The era of winning based on a single advantage is over. The future will be defined by system-vs-system competition.
AI tool evolution enables you to run faster; new growth curves allow you to run further; Glocalization ensures you run steadier—these three strategies together constitute the core competitiveness for e-cigarette companies in this fiercely competitive market.
The future e-cigarette market will belong to those enterprises that can grasp global trends while deeply cultivating local markets; leverage advanced technology while meeting genuine consumer needs; adhere to compliance requirements while embracing innovation.
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E-Cigarettes