In recent years, the e-cigarette industry has faced an increasingly stringent regulatory environment. As the world’s largest e-cigarette market, the United States will add specific tax items for heated tobacco products in 2024 and require all exported products to pass the FDA’s PMTA pre-market approval. The European Union, China and other places have also strengthened the protection of minors, advertising restrictions and flavor innovation. For example, the European Union prohibits the sale of flavored e-cigarettes containing nicotine. According to statistics from the World Health Organization, 35 countries in the world have completely banned e-cigarettes, and 82 countries have implemented sales restrictions. The background of this tightening policy stems from public health considerations and reflects concerns about the surge in youth use.
Despite increasing regulatory pressure, technological innovation remains the core driving force for the development of the industry. The e-cigarette market size is expected to reach US$29.1 billion in 2024, of which rechargeable devices dominate due to cost-effectiveness, while disposable e-cigarettes achieve the highest growth rate due to portability. Companies represented by VEEHOO have developed high-safety atomization technology, degradable cartridges and other products to meet compliance requirements and seize market opportunities. For example, the intelligent temperature control system launched by VEEHOO reduces the release of harmful substances through precise heating, which has become its key technical advantage in passing FDA approval.
The global market shows significant regional differences: North America accounts for 57% of the market share, but the growth rate has slowed to 4.8%; the Asia-Pacific region has become an emerging growth pole with a compound growth rate of 9.5%. VEEHOO’s global layout strategy reflects this trend – it mainly promotes high-end compliant products in Europe and the United States, and develops low-priced entry-level devices in the Southeast Asian market, while adapting to the flavor restriction policies of countries such as Indonesia. This “localized compliance + technology output” model helped it achieve a counter-trend growth in market share in 2025.
In the long run, the e-cigarette industry needs to explore a sustainable development path within the regulatory framework. The case of VEEHOO shows that companies need to work hard in three aspects:
Strengthen compliance capabilities: Establish a global supply chain traceability system to ensure that raw materials and production meet multinational standards;
Deepen health technology: Develop low-nicotine and medical auxiliary products, such as VEEHOO’s smoking cessation auxiliary equipment in cooperation with medical institutions;
Participate in policy dialogue: Promote scientific supervision through industry alliances, such as supporting the establishment of a safe white list of e-cigarette ingredients.
The e-cigarette industry is undergoing a critical stage of “regulation reshaping the market”. The practice of companies such as VEEHOO shows that only by embedding technological innovation into the regulatory compliance system can long-term development be achieved in the balance between control and innovation. With the global market size expected to exceed US$50.98 billion in 2028, companies that actively adapt to rules and lead technical standards will dominate the next stage of competition.
Tags: heated tobacco products, flavored e-cigarettes, surge in youth use of e-cigarettes, veehoo vape
