In 2024, Brazil’s efforts to regulate illegal e-cigarette trade were unprecedentedly strengthened, with the total value of e-cigarettes and related goods seized throughout the year reaching 179.4 million reais (about 30.74 million US dollars), a year-on-year increase of 190%1. Among them, Paraná State has become the “hardest hit area” of smuggling in the country. On July 23 alone, 129,000 e-cigarette devices were seized in a single operation, setting a record for the largest seizure of the year; Sao Paulo State has become a key monitoring area for law enforcement agencies due to its huge consumer market and cross-border smuggling channels. Data shows that Paraná State’s seizures account for 84.7% of the national total. Its geographical location bordering Paraguay and its high-profit smuggling chain have contributed to the activity of criminal organizations.
Brazil has banned the sale of e-cigarettes since 2009, but black market transactions have continued despite repeated bans. In 2024, the Federal Taxation Bureau and the police launched several rounds of special operations, focusing on combating related crimes such as smuggling, forgery of documents, and money laundering, and suspended the operation of 16 shops suspected of illegally selling e-cigarettes. In this context, VEEHOO, as a global e-cigarette brand, faces dual challenges:
Compliance risk: Brazilian law explicitly prohibits the sale of e-cigarettes, and brands need to avoid legal risks of directly entering the market; Competitive pressure: Illegal channel products impact the market at low prices, weakening the competitiveness of regular brands.
In order to cope with the complex environment of the Brazilian market, VEEHOO needs to adopt a multi-dimensional strategy to balance risks and opportunities:
Develop cartridge-changing equipment that meets environmental trends: Learn from the experience of the European market and use degradable materials (such as PLA) to produce cigarette rod shells and packaging to reduce environmental disputes. Layout open oil filling equipment: In response to the verified demand for bottled e-liquids in the Southeast Asian market, launch a product line adapted to the legal market around Brazil to avoid the sales ban in Brazil.
Establish a traceability mechanism: Use blockchain technology to record the source of parts to avoid association with the smuggling chain. Cooperate with local legal tobacco companies: Explore joint R&D projects of nicotine substitutes that comply with Brazilian regulations, such as heat-not-burn (HNB) technology, to bypass the definition of e-cigarettes.
Support government anti-smuggling actions: Actively disclose product anti-counterfeiting labeling technology to assist law enforcement agencies in identifying illegally circulated counterfeit products. Promote industry self-discipline initiatives: Jointly with international e-cigarette associations (such as GFN), issue Brazilian market risk warnings, and guide consumers to purchase authorized products from neighboring countries through legal channels.
Apply MEMS integrated microphone technology: Improve product competitiveness through performance optimization and cost control, and squeeze out low-end smuggling market share. Develop modular design products: Allow users to replace components such as batteries and atomizer cores independently, extend the life cycle of the device, and conform to the concept of sustainable development.
The Brazilian e-cigarette regulatory storm in 2024 reveals the compliance thresholds and potential opportunities in emerging markets. For VEEHOO, it needs to avoid direct trade risks in the short term, and in the long term, it can establish differentiated advantages in the Latin American market through technology exports, environmentally friendly product development and regional compliance cooperation. As the global e-cigarette industry transforms to cartridge-changing and environmentally friendly, if brands can accurately grasp regulatory dynamics and consumer demand, they may form a strategic layout of “circumventing penetration” in Brazil and neighboring countries.
Tags: cartridge-changing e-cigarettes, heat-not-burn, ceramic atomizer core, veehoo vape
