Whether we admit it or not, with the unprecedented acceleration of the legalization process of global cannabis, the cannabis industry is expanding its market scale with the help of capital power, and it is popular in all walks of life. CBD e-cigarette, known as the “stimulant” of e-cigarette industry, is a new turning point and a new opportunity for the capital market to move towards the e-cigarette industry, and a “original project” for the commercial application of industrial cannabis. In China, there are as many as 33 A-share e-cigarette concept stocks, and the e-cigarette concept stocks involving industrial hemp are eager to try, which are popular in the market.

According to the Frost Sullivan report, under the influence of global tobacco control activities, electronic cigarettes and heating non combustion equipment are regarded as ideal substitutes for traditional tobacco products, thus achieving rapid development. By revenue, the size of the global e-cigarette market rapidly increased from US $12.4 billion in 2014 to US $36.7 billion in 2019 at a compound annual growth rate of 24.2%, and is expected to further increase to US $111.5 billion in 2024 at a compound annual growth rate of 24.9%.

The wealth effect of CBD atomizing equipment is just a microcosm of the cannabis industry, and the windfall profits of CBD tobacco oil are even more exciting. In the market, the market price of 500-600mg of high-end synthetic CBD cigarette oil brands can reach more than 1000 yuan, or more than 200 dollars per kilogram.
In China, China’s tobacco consumption is quite conspicuous in the world. Data from the Tobacco Atlas released by the American Cancer Society and the World Lung Health Foundation show that as early as 2016, Chinese smokers purchased more than 40% of the world’s total tobacco consumption.

From 2015 to 2019, the number of adult e-cigarette users in China increased significantly. From 2015 to 2016, the use rate of electronic cigarettes by Chinese adults in the past 30 days is estimated to be 1.3%. From 2018 to 2019, the use rate of adult electronic cigarettes in China rose to 1.6%, an increase of 0.3%, and the number of new adult electronic cigarette users was about 3.35 million, including 3.2 million men and 150000 women. Among them, the use rate of electronic cigarettes among young adults increased significantly, increasing by 0.7% in four years. The use rate of e-cigarettes among young adults aged 18-29 years increased significantly from 2.0% in 2015-16 to 2.7% in 2018-19. From 2015 to 2019, the number of e-cigarette users in China increased by 3.35 million in four years. Among them, 3.2 million are men and 150000 are women.

China is a big consumer of electronic cigarettes. The report shows that 48.5% of the people aged 15 and above in China have heard of electronic cigarettes, 5% have used electronic cigarettes, and 0.9% are still using electronic cigarettes. According to this calculation, the number of people aged 15 and above using electronic cigarettes in China is about 10 million.

In 2019, China’s electronic cigarette industry ushered in a truly explosive year. The electronic cigarette with low threshold, low cost and high gross profit has become a hot spot in the venture capital circle. According to the data of Tianyan Survey, from 2016 to 2018, the number of newly registered enterprises of electronic cigarette exceeded 1000 each year, and since 2019, more than 2000 enterprises of electronic cigarette have been added.

At present, there are 33 A-share electronic cigarette concept stocks in China, mainly including Yiwei Lithium Energy, Jiyou Shares, Meggitt, Yingqu Technology, etc. The demand for e-cigarettes is concentrated in North America and Europe, while e-cigarettes are mainly manufactured in China. 90% of global e-cigarettes are produced in China, while 90% of Chinese e-cigarettes are exported. China’s electronic cigarette manufacturing industry is concentrated in Shenzhen. Shajing and Fuyong, two remote streets in Bao’an District, Shenzhen, with more than ten square kilometers of streets, have 600 e-cigarette manufacturers, which produce 90% of global e-cigarettes, known as “Fog Valley”. At present, China’s electronic cigarette penetration rate is less than 1%, but the number of smokers is large, and the domestic electronic cigarette market has huge development potential. Assuming that the penetration rate of electronic cigarette will reach 10% in the future, the corresponding market scale will reach 100 billion.

Japan is the world’s largest heating non burning tobacco market, and its market share has entered a stable stage. In 2017, the sales volume of heated tobacco products in Japan was about 4.7 billion US dollars, accounting for more than 90% of the global market for non burning heated tobacco. JTC estimates that by the end of 2020, the electronic cigarette market will account for 30% of Japan’s domestic tobacco market.

According to Cowen and Company research report data, the sales of CBD atomizers in the United States in 2018 will be 40 million dollars, and it is estimated that the global market space of CBD atomizers will reach 700 million dollars in 2020. Cowen and Company’s survey on the distribution of the global CBD atomizer market shows that the United States, Canada and the United Kingdom have the highest sales volume, with the United States accounting for 45% of the global market.

Recently, Greenbank and Arcview jointly released the first issue of the 2021 North American Electronic Cigarette Market Report Series Quarterly by using Headset data analysis. It was clearly pointed out in the report that the sales of electronic cigarette products with 1g smoke cartridge specifications in the United States were increasing in every region, especially in California, Washington and Oregon.

Among them, the sales volume of marijuana electronic cigarettes in California in the United States will exceed 1 billion dollars in 2020. The sales volume in Q1 2021 will increase by 22.6% over the same period last year, and the total sales volume will increase by 33% over the same period last year. Compared with Q1 sales in 2021, Colorado’s hemp e-cigarette is 31% higher and Oregon’s is 46% higher. In Canada, the data shows that the sales of electronic cigarettes in British Columbia increased by 126% compared with Q1 in 2020.

The report analyzes the reasons for the growth of its cannabis electronic cigarette sales, mainly because the size and income of emerging markets are showing a positive growth trend, and the market is expanding faster and faster. At the same time, since 2018, the number of new users of cannabis e-cigarettes has grown steadily. Between 2018 and 2020, the number of consumers using cannabis e-cigarettes in the United States has increased from 20% to 27%. In addition, the extraction technology of hemp electronic cigarette has also been improved and enhanced. The manufacturers of hemp electronic cigarette are also actively involved in creating the next generation of hemp electronic cigarette technology to meet and innovate the use methods and experiences of users.