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Everyone wants a piece of the pie in the purple water pipe business

  

  Indeed, the capital's interest in e-cigarettes began 16 years ago.

  Chinese pharmacist han li invented the first generation of atomized e-cigarettes in 2003, but the loss-making devices have disappeared since imperial tobacco bought them in 2013.

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  Between 2009 and 2013, lookah glass rig, represented by bionic tobacco, were popular for a while, but eventually died out due to inexperience.

  From 2013 to 2015, a large amount of smoke was also recognized by some e-cigarette players, but it did not open the whole e-cigarette market.

  Until Juul, an American e-cigarette brand, made a breakthrough in the core technology of nicotine salts, third-generation e-cigarette brands were able to circulate large amounts of powder on the market, leading to a "spurt" of development.

  Nicotine salt tastes closer to real smoke than the free basic nicotine used in e-cigarette oils, and is more likely to be "high-end."With the development of new technology, yule soon accounted for nearly 75 percent of the e-cigarette market in the United States.

  There is also a huge wealth effect that makes people "go beyond".

  In December 2018, marlboro's parent company, Altria, announced it would buy a 35 percent stake in July for $12.8 billion.After the acquisition, Juul's two founders were valued at nearly $1 billion, or nearly $38 billion, in just four years.Meanwhile, 1, 500 yul employees received $2bn in excess bonuses at the end of the year.

  After Juul's "get rich" effect, e-cigarette brands are booming around the world.According to industry insiders, there are about 1,500 e-cigarette brands on the market.

  Jiang menghan, an analyst with tianfeng securities, said the current e-cigarettes are mainly divided into atomized e-cigarettes and heated non-combustible e-cigarettes.Global e-cigarette sales reached $27.74 billion in 2018, up 60.6 percent year on year.Global e-cigarette sales are expected to reach $37 billion in 2019.

  Although China has 350 million smokers, the penetration rate of lookah glass bongs is still less than 1%.Assuming that the penetration rate of e-cigarettes will reach 10% in the future, the corresponding market size will reach 100 billion.

  Like altria, traditional tobacco giants tend to expand their e-cigarette business through their own investments or acquisitions.

  In 2014, FEMO International, the world's largest tobacco company, introduced iQOS for heating non-flammable tobacco.

  Jt acquired steam e-cigarette logic in 2016 and launched PloomTech in 2016;Imperial tobacco was launched in 2016.It also acquired products such as the steam e-cigarette Blu through its subsidiary in 2015.

  In 2017, British American tobacco acquired Renault, whose main products include heating and non-burning tobacco gum.

  These traditional tobacco giants often lack technical experience in electronics manufacturing.Therefore, for a long time, the entire e-cigarette industry has presented a global industrial chain pattern of demand centers in Europe and the United States and manufacturing centers in China.

  As China accounts for more than 90 percent of the world's total output, its industrial chain system is quite mature.Qiu yiwu, co-founder of Whale light tobacco, has told the media that the supply chain for the dab rigs amazon industry is virtually complete, with a large number of patents now in the hands of manufacturers who started making e-cigarettes a decade ago.

  McWeill, the world's largest maker of e-cigarettes, was founded in shenzhen in 2006.Its main business is designing and manufacturing matching electronic fogging devices for major e-cigarette brands, including Juul, of which more than half of the top 10 U.S. e-cigarette brands have partnerships with McWeill.

  Not a few public companies, such as McWeill, are fully engaged in the business of upstream suppliers of e-cigarettes.According to the new consumption statistics, the new third board and a-share market have more than 20 listed companies involved in the development, sales and production of e-cigarettes.

  002925.sz entered the e-cigarette business in 2014, providing precision plastic parts for PMI e-cigarette of FEMO International, the world's largest tobacco company, and to its subsidiary Technocom in the following year. In 2015, the sales revenue was 98.91 million yuan.

  From 2015 to 2017, due to the improvement of scale and technology, the product sales ratio and gross profit margin of yingxue e-cigarette business increased year by year, and the proportion of e-cigarette related business in revenue also increased from about 10% in 2015 to 52.3% in 2017.