Over the past decade, the e-cigarette industry has experienced a period of rapid growth. China has established the world's most comprehensive supply chain, while the markets in Europe and America have seen rapid adoption. Disposable e-cigarettes have swept across the globe, with countless brands achieving development from scratch in a short timeframe.

At that time, the most discussed topics in the industry were: Which countries still had potential for growth? Which sales channels remained viable? And which products were most likely to become hits?

By 2026, however, these issues had begun to evolve. Global regulatory frameworks have become increasingly robust, market competition has intensified, and consumers have grown more discerning.

The e-cigarette industry is moving beyond the era of relying solely on market trends for growth. So where exactly lies the next growth opportunity?

The first round of growth stems from the supply chain.

Looking back over the past decade, what is the greatest advantage of China's e-cigarette industry?

The answer is clear: the supply chain.

Shenzhen hosts the world's most comprehensive e-cigarette industry chain, covering everything from atomization cores, batteries, chips, and molds to automated production – almost all critical components can be coordinated within a short timeframe. It is precisely this manufacturing efficiency that has enabled China-based companies to rapidly dominate the global market.

At that stage, the key competition lay in who could produce faster, incur lower costs, and deliver more efficiently. The supply chain was the ultimate competitive advantage.

The second round of growth stems from product innovation.

Subsequently, the industry entered a phase of product competition.

Electronic cigarettes have gained significant popularity, with high-capacity models becoming increasingly common. Their flavors continue to diversify, and designs have become more youthful. Features such as screens, animations, and interactive elements have been incorporated into these products.

An increasing number of brands have come to realize that consumers purchase e-cigarettes not only for nicotine intake but also for the experience itself. Products are thus shifting from functional competition to design competition.

The next round of growth stems from brand capabilities.

Today, manufacturing another disposable e-cigarette is no longer difficult. The supply chain has become highly mature, and products are becoming increasingly homogeneous. What truly sets them apart is no longer hardware but brand.

Why do products with identical specifications cost $9.90 for one and $19.90 for another? Why do consumers specifically seek out a particular brand rather than buying any product randomly? The answer lies in branding.

A brand signifies not only recognition but also trust—it represents consistent quality and demonstrates consumers' willingness to choose it repeatedly.

In the coming years, brand equity will become the most critical asset for e-cigarette companies.

Even greater growth stems from global operational capabilities.

Many companies still view going global simply as finding overseas customers and selling products. In reality, this reflects an outdated mindset. Today's global competition hinges on operational excellence.

Are you familiar with local regulations?

Should I create a local team?

Do you have a stable after-sales service?

Can the brand be sustained in operation?

Do you understand the consumption habits of different markets?

In the future, products can be replicated and supply chains can be learned from. However, global operational capabilities are difficult to establish in a short period, which will become a new competitive barrier.

There's another aspect of growth that many people overlook.

Over the past few years, the entire industry has focused on one question: how to acquire more new users. However, what truly matters going forward is how to retain existing customers.

Today, many companies still allocate resources to customer acquisition, while few genuinely invest in user operations. In the future, membership programs, digital services, user communities, and brand engagement are likely to become key drivers of growth.

The shift from "selling products" to "managing users" will represent a pivotal transformation for the industry.

Growth may also come from new product categories.

E-cigarettes will not be the only novel nicotine product in the future. In recent years, new categories such as heated-not-burned products and nicotine pouches have rapidly emerged across various markets.

Due to differences in regulatory policies and consumer habits across countries, a diversified new landscape of nicotine consumption is likely to emerge in the future. For enterprises, what truly warrants strategic focus may not be limited to a single product but rather involves developing a comprehensive product portfolio tailored to consumer needs.

In the future, the competition will no longer be about who owns a hit product, but who can meet consumers' needs across a wider range of scenarios.

Many people ask: Is there still growth in the e-cigarette industry? My answer is: Yes.

But the pattern of growth has changed. In the past, growth stemmed from market dividends; in the future, it will come from corporate capabilities. Previously, competition centered on supply chains; going forward, it will focus on brands. Previously, the key was manufacturing prowess; now, it lies in global operations capabilities.

The e-cigarette industry has not reached its endpoint. It has merely concluded the first phase of "unregulated growth" and is now entering a more mature development stage. For China-based companies, this signifies both greater challenges and new opportunities.

In the future, what truly determines a company's value will no longer be who owns the largest factory, but who possesses the strongest brand, the most comprehensive global operations system, and the ability to continuously create product value.

The next wave of growth won't emerge abruptly. It's gradually unfolding among companies that are willing to shift from a 'manufacturing mindset' to a 'brand mindset,' and from an 'export-oriented mindset' to a 'globalization mindset.'