Event:
On April 12, 2022, the State Administration of market supervision (State Standardization Administration Committee) approved the mandatory national standard of electronic cigarette and officially issued it. The standard will be officially implemented from October 1, 2022.
E-cigarette products are fully standardized, and policy supervision is further tightened
The mandatory national standard of e-cigarette officially released this time is basically consistent with the national standard of e-cigarette (second exposure draft) released last time. It has formulated comprehensive standardized standards for e-cigarette products and put forward strict requirements on e-cigarette fittings and materials, aerosols, additives and releases. In terms of relevant standards of cigarette sets and cigarette bombs: 1) the standard requires that electronic cigarette sets and cigarette bombs using electronic cigarette liquid should have closed structure and good sealing to prevent artificial filling and liquid leakage. At the same time, for the electronic cigarette or cigarette cartridge filled with electronic cigarette liquid, visual inspection shall be conducted to determine whether substances can be added. 2) The electronic cigarette set shall have the function of preventing children from starting and the protection function of preventing accidental starting. 3) The EMC performance design of electronic cigarette set shall comply with gb4343 1. In addition, the national standard also makes corresponding provisions on the temperature of cigarette atomization area (not higher than 350 ° C), waterproof and drop strength. In terms of relevant standards of atomized substances: 1) the atomized substances shall contain nicotine, and the concentration of nicotine in the atomized substances shall not be higher than 20mg / g, and the total amount of nicotine shall not be higher than 200mg. It is also stipulated that the nicotine extracted from tobacco shall be used as the atomization material, and the purity shall not be less than 99%. 2) The number of substances temporarily licensed for use of atomization additives is 101, and corresponding provisions are also made on the maximum use. 3) The characteristic flavor of the product shall not present other flavors except tobacco, and shall not induce minors. Popular seasonings in the market, including fruit flavor, are prohibited.
Comments: the threshold of industrial access has been raised marginally, and the industrial structure is expected to be continuously optimized
It has taken nearly five years since the national standard plan for electronic cigarette was first issued in 2017 to the official release of this national standard, which has milestone historical significance for the whole industry. We believe that the official release of the national standard is conducive to the marginal improvement of the industrial access threshold: the products of electronic cigarette sets / cigarette bombs production enterprises need to be transformed from their own internal standards to production according to the national standard, which puts forward higher requirements for the production capacity and technical reserves of enterprises. In addition, corresponding requirements are also put forward for middle and downstream brands and sellers, so as to realize the marginal improvement of the industrial threshold. The industry may have a painful period, but the overall structure is expected to continue to be optimized: due to the explicit prohibition of fruit and other popular flavored e-cigarettes, high nicotine content and synthetic nicotine smoke bombs in the national standard, the industry may have a short-term transformation painful period. However, with reference to the taste ban issued by the FDA, the market stabilized and rebounded after a short-term decline, and the medium and long-term industry is expected to maintain steady development. In addition, leading enterprises may further increase their market share by virtue of their own technology and product advantages, and the industry structure is expected to be continuously optimized.
Investment advice
Suggestions: China Tobacco Hong Kong, China Bolton, Shenzhen Jinjia Group Co.Ltd(002191) , Anhui Genuine New Materials Co.Ltd(603429) , Shanghai Shunho New Materials Technology Co.Ltd(002565) , Shantou Dongfeng Printing Co.Ltd(601515) , smore international, Xiamen Intretech Inc(002925) .
Risk tips
Covid-19 epidemic impact; The impact of business conditions; Risk of policy changes.
