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German e-cigarette market

Time: 2023-09-18

Views: 216

INSTA FILL launches a product that combines cartridge reloading and disposable (pod system disposable). Stan believes that German e-cigarettes are the second la...

On September 15, at the Dortmund Tobacco Show, INSTA FILL, an e-cigarette brand owned by Yijiate, launched a product that combines reloadable and disposable (pod system disposable) products. Stan Chng, INSTA FILL brand sales director, told Two Supremes that Germany is the second largest e-cigarette market in Europe and has promising development prospects. INSTA FILL will "eat" the disposable product market in the future. As a new e-cigarette brand that only debuted at the Dubai E-cigarette Exhibition in June 2023, where does INSTA FILL have the confidence to make such a bold statement?


 


Recently, disposable e-cigarettes have suffered successive blows in the European market: French Prime Minister Elisabeth Bohn said in an interview that she plans to ban the sale of disposable e-cigarettes; many British media reported that the British government plans to propose in a consultation to be released next week Ban the sale of disposable e-cigarettes to prevent children from becoming addicted to these devices.


 


Disposable e-cigarette products have always been criticized by environmental organizations and some people in society because of their appearance and "disposable" characteristics. The e-cigarette industry is also thinking about how to minimize environmental pollution while taking into account the convenience of disposable products. As a result, an e-cigarette that combines the dual characteristics of reloading and disposable emerged, and the market classified it as an "innovative disposable product."


 


Stan said that the biggest feature of this product is that "the e-liquid, smoking accessories, and battery are separable" and it is a large-mouth product that complies with the EU TPD standard. It is a "compliant 3,500 large-mouth product at the UK and EU levels."


 


Stan said that the current core market strategy of the INSTA FILL brand is to comply with the requirements of the European Union. "We are making products for these policies." Therefore, the development of innovative single-use products also revolves around compliance. For example, the battery of the product is reusable, aiming to reduce the negative impact on the environment; and the refillable cartridge means that users can refill the e-liquid themselves to avoid throwing it away after use.


 


When sold, the product only contains 2 ml of e-liquid, but it also comes with a 10 ml transparent e-liquid bottle. When the 2 ml of e-liquid is used up, the user can throw away the old cigarette cartridge, then replace the cigarette cartridge and fill it with e-liquid. Just connect the new cigarette cartridge to the device and continue using it.


 


On another level, the design of separating smoking accessories and e-liquid is also in line with the current situation of the German market. According to Two Supremes, the tax on e-cigarette oil in Germany is 0.16 euros per milliliter. It is expected that the tax rate will increase to 0.2 euros in 2024, 0.26 euros in 2025 and 0.32 euros in 2026. This may cause the retail price of e-cigarettes to increase by nearly 40%.


 


Taxing e-cigarette oil is a method used by the German government to restrict e-cigarettes, especially disposable e-cigarettes. According to estimates from the Dortmund Tobacco Freedom Alliance (BfTG), disposable e-cigarettes will account for 40% of the e-cigarette market in 2022. After the policy is promulgated, if disposable e-cigarettes contain high-capacity e-liquid, the cost will inevitably increase. According to BfTG estimates, the share of disposable e-cigarettes in 2023 will drop by 10 percentage points compared with 2022.


 


Stan told Two Supremes that he expects to adopt a separate sales strategy in Germany, where "e-liquid, appliances, and batteries are sold separately." Specific measures may be to sell batteries and smoking accessories together, but e-liquid must be sold separately, otherwise "the overall tax will be very high." Under this condition, INSTA FILL is much cheaper than disposable products of the same capacity, so the product will be more competitive.


 


Stan said that customers from Switzerland, the United Kingdom, the United States and other places have shown interest in the new products, and the negotiations are going well with customers from the United States, the United Kingdom and other places.


  


In fact, compliant large-mouth products have already appeared in the UK. Previously reported products such as Happy vibes 3500 and IVG 2400 all use this as a selling point.

 


Stan said that unlike Germany's separate sales, the British market will adopt a package sales model. The retail price of INSTA FILL in the UK also refers to the positioning price of IVG 2400, which is the same as 12.99 pounds, but INSTA FILL has more mouths.


 


Stan is optimistic about the future of the German market and believes that the German market has huge potential. "We feel that Germany is the second largest market in Europe, after the United Kingdom." He said. When asked by the two supreme leaders which market and group of people INSTA FILL's products would focus on, Stan said that he wanted to "eat" the disposable market.


 


At present, INSTA FILL is still facing pressure from competition from other e-cigarettes. But if it is a competition for compliant products, Stan believes that we can win by relying on quality and design. However, due to the high black market competition in the UK, illegal black market products can achieve extremely low prices. "A certain brand of 3,500 illegal disposable products, two of which are sold on the black market for as low as £8.99," Stan said.


 


In other words, the competitors with a large number of compliant products are not equally compliant products, but these black market products, which rely on the same number of orders but lower prices, will really squeeze the market space of compliant products. In this regard, Stan believes that British consumers like to pay for more "affordable" products.


 


Regarding the future, Stan said that the European market is the company's primary goal, and the next plan is to enter the US market.



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