Fast-moving consumer goods, slow-moving policy: structures and strategies of China's e-cigarette industry and global...

China is the global centre for e-cigarette (EC) manufacturing. While regulatory responses have increasingly incorporated supply-side enforcement measures, research examining the supply-side dynamics of the global EC market remains limited.

Using the tobacco industry globalisation framework of Lee and Eckhardt, we examined the globalisation of the Chinese EC industry across three domains: current status, globalisation strategies and structural organisation. Analyses drew on publicly available industry reports, government documents, academic literature, corporate records and media sources in English and Chinese.

China dominates the global EC market, producing over 90% of the world's ECs, including those that are sold by transnational tobacco companies (TTCs) (eg, Vuse, Njoy) and those that are sold by Chinese companies, notably high-volume disposable ECs (eg, Elf Bar, Puff Bar) and exports these products to more than 160 countries. Chinese EC firms operate under a fast-moving consumer goods (FMCG) model characterised by rapid product turnover, extensive flavour and design variation and short innovation cycles, in many respects the inverse of the TTC business model. A vertically integrated manufacturing ecosystem centred in Shenzhen enables low-cost production and rapid regulatory adaptation. Domestic regulations imposed on Chinese ECs in 2022 appear to have further accelerated global expansion, while complex corporate structures obscure accountability. We present examples illustrating how regulations premised on the assumption that ECs behave like cigarettes have failed to keep pace with this industry.

The globalisation of Chinese EC companies challenges prevailing tobacco control paradigms. FMCG-style production, rapid product iteration and effective supply chains enable circumvention of regulations. More effective responses require coordinated, supply-side-informed approaches that strengthen oversight of manufacturing, distribution and cross-border trade.