The Changing Landscape of the German E-Cigarette Market: Transitioning from Disposable E-Cigarettes to Pod Systems

The Changing Landscape of the German E-Cigarette Market: Transitioning from Disposable E-Cigarettes to Pod Systems

Is the German e-cigarette market changing? Are disposable e-cigarettes transitioning to pod system? Today, Vaporization New Force received news from overseas that during an e-cigarette event in Stuttgart, Germany, the German customs conducted a surprise inspection on exhibitors, demanding that all products must have tax labels or be reported to customs.


Germany's latest customs policy also stipulates that e-cigarettes must have tax labels. According to relevant German policies, all e-liquid products entering Germany for sale must have tax labels. If they are not intended for sale and are used as samples, gifts, or exhibition products, they need to be declared to customs. If the inspected products do not meet both of these requirements, they will be confiscated.


Declining Popularity of Disposable E-Cigarettes and the Rise of Pod Systems

Of greater concern is that industry insiders have stated that the popularity of disposable e-cigarettes in Germany is declining, and the market is shifting towards refillable pod system. This is mainly due to a e-cigarette tax imposed by Germany in July of last year, which is equivalent to an additional 2 euros of tax per e-cigarette.


Impact of Taxes and Costs on the German E-Cigarette Market

After careful investigation, it was found that there are currently about 2.45 million e-cigarette users in Germany. Starting from July 1st of last year, e-liquids are subject to an additional tobacco tax of 0.16 euros per milliliter. For example, a bottle of 10ml e-liquid currently costs about 5 euros (including VAT), and after the tobacco tax is levied, the price increases by 1.6 euros. Adding the VAT on top of the tobacco tax, the total price increase amounts to 1.9 euros. Simon Bauer, the chairman of the German Vaping Association, also recently stated that disposable e-cigarette products are the focus of regulatory authorities and pose environmental and youth usage issues. He also mentioned that due to the implementation of Germany's e-cigarette tax policy, nearly half of e-cigarette shops in the country have closed. Currently, the federal government of Germany is also reviewing the country's disposable e-cigarette policy. Market data also shows that over 5 million disposable e-cigarettes are sold in Germany each month, with the most famous brand being China's Elfbar. According to the German Vaping Trade Association (VdeH), e-cigarette sales in the Federal Republic exceeded 300 million euros last year. E-cigarettes are now commonly sold in supermarkets and Spätis (late-night shops) at prices ranging from 7 to 10 euros.


Adapting to Policy Changes and International Trade

Nevertheless, Germany is one of the largest e-cigarette markets in Europe, with a large number of Chinese brands present. Many Chinese e-cigarette companies participate in e-cigarette events in Stuttgart, where they gather with numerous leading Chinese manufacturers. Well-known e-cigarette brands such as ELF BAR and LOSTMARY under heaven gift, GEEKVAPE, ANYX, SKE, ELUX, and VAPORESSO (a subsidiary of smoore Technology) all attended. According to customs data from Shenzhen, in the first two months of this year, compliant e-cigarettes exported to Germany through Shenzhen customs reached 240 million euros, an increase of 713% compared to the previous year. This indicates that a significant number of compliant e-cigarettes are also being exported to Germany.


Future Outlook and Market Projections

Currently, although the taxes and costs of e-cigarettes in Germany are increasing, most companies will not give up on this market and are expected to make efforts to adapt to the changing policies of different countries. Policy changes are a common occurrence in the new stage of international trade, and adapting to these changes has become a test of the strength of e-cigarette manufacturers.


Stay Informed and Explore Opportunities

At the same time, based on some changes in the European market this year, it has been observed that some wholesale distributors in the UK are also discussing the development of nicotine-free options and expressing optimism. Similarly, in the European market, several well-known companies have already entered the nicotine-free e-cigarette market, including British American Tobacco (BAT), Smoore International (SMOK), JUUL and ANYX.


As of now, Germany stands out as one of the few countries in Europe to impose taxes on e-cigarettes. Currently, only e-liquid is taxed at a rate of 0.16 euros per milliliter. However, it is projected that by 2024, the tax rate will increase to 0.2 euros, reaching 0.26 euros by 2025 and 0.32 euros by 2026. This could lead to an approximate 40% increase in the retail prices of e-cigarettes, further intensifying market price fluctuations. Essentially, it means that the prices of e-cigarette liquids in Germany will continue to rise each year.




In conclusion, despite the increased taxes and costs associated with e-cigarettes in Germany, the majority of companies are unlikely to abandon this market. Instead, they are expected to adapt to the evolving policies of different countries. Policy changes have become a norm in the e-cigarette industry, and the ability to adapt to these changes is a testament to the strength of e-cigarette manufacturers.


As the European market undergoes various transformations, exploring the potential of nicotine-free options and visiting the UK market reveals discussions among wholesale distributors. Prominent companies such as BAT, Smoore International (SMOK), and ANYX have already made strides in the European nicotine-free e-cigarette market.


While Germany currently stands as one of the few European countries to impose taxes on e-cigarettes, only e-liquids are currently taxed at a rate of 0.16 euros per milliliter. However, projections indicate that the tax rate will increase to 0.2 euros by 2024, 0.26 euros by 2025, and 0.32 euros by 2026. These changes may result in a nearly 40% retail price increase for e-cigarettes, further impacting the market's pricing dynamics. Essentially, e-cigarette liquid prices in Germany are set to rise annually.

Introducing ANYX - a leading e-cigarette brand at the forefront of the German market.


In summary, despite the rising taxes and costs, most companies are expected to persevere in the German market and strive to adapt to the evolving policies of different countries. The e-cigarette industry continually faces policy changes, and the ability to adapt has become a crucial test of manufacturers' capabilities.


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