Malaysia's E-cigarette Market Grew By 53%, With Disposable Products Accounting For 32% Of The Market Share

Recently, the Malaysian Electronic Cigarette Chamber of Commerce (MVCC) released the "2023 Malaysia Electronic Cigarette Industry Research", which showed that as more and more cigarette users switch to electronic cigarettes, the number of consumers has also increased. The retail value has surged by about 53% from RM2.27 billion (approximately RMB 3.56 billion) in 2019, and is expected to reach RM3.48 billion (approximately RMB 5.47 billion) by 2023.
This study reveals that the Malaysian e-cigarette industry is rapidly becoming a game changer for traditional cigarettes. 31% of Malaysian smokers have completely switched to e-cigarettes, while 69% of cigarette users simultaneously use e-cigarettes, with up to half of them using e-cigarettes to completely quit smoking.
The report also pointed out that the contribution of the e-cigarette industry to the economy has significantly increased, and the number of employment related to e-cigarettes has also increased.
MVCC Secretary General Ridhwan Rosli stated that research clearly shows that the e-cigarette industry continues to grow strongly.
In addition to making significant contributions to the national economy and helping smokers quit smoking, it also promotes the growth of local enterprises and directly and indirectly creates multiple job opportunities throughout the entire supply chain
He expressed support for the government's regulation of the e-cigarette industry by introducing a tax framework and proposing the 2023 Public Health Smoking Product Control Act. However, the 'End of Generation (GEG) policy' that belongs to MVCC has raised concerns.
Rosley added that the main concern is that this may have potential adverse economic impacts on the field. The e-cigarette industry is experiencing significant growth, and many entrepreneurs have found opportunities and livelihoods in this market.
Implementing the GEG policy may stifle this growth, leading to unemployment and affecting the livelihoods of many people.
This will also convey the wrong message to smokers, placing e-cigarettes in the same category as cigarettes, which will prevent many people from using e-cigarettes to quit smoking
According to data from the 2023 Malaysia E-Cigarette Industry Research, two studies were conducted: one was direct contact with industry participants, and the other was an online consumer survey.
Industry research findings indicate that the number of e-cigarette enterprises has changed in the past few years.
Currently, there are approximately 7500 retail stores selling e-cigarette products, and 2500 retail stores selling e-cigarette products. From 2015 to 2022, the number of employees increased from 15000 to 31500.
Key findings of consumer research include:
The proportion of e-cigarette users using open and closed systems has decreased from 77% and 23% in 2019 to 50% and 18% in 2023, while disposable systems have quickly occupied 32% of the market share.
The total average cost of open/closed systems is estimated to be RM2.56 billion per year, while the cost of disposable products is estimated to be RM925 million per year.
34% of e-cigarette users prefer e-cigarette oil containing only nicotine, while 28% prefer e-cigarette oil without nicotine. About 38% of people use both.
The content of nicotine in electronic cigarette oil per milliliter (ml) shows that 95% of people use 40 milligrams of nicotine per milliliter.
The reason why users choose to use e-cigarettes is because compared to cigarettes, they have less physical harm (45%), help quit smoking (45%), and are cheaper than smoking (36%).
Rosley mentioned that Malaysia has an international reputation for manufacturing high-quality e-cigarette products, especially e-cigarette oil.
This puts Malaysia in a favorable position to attract high-quality foreign direct investment, thereby strengthening the e-cigarette business ecosystem.