Overview of Pakistan’s E-cigarette Market and Regulations

In recent years, Pakistan's e-cigarette market has demonstrated significant growth potential, particularly among younger consumers seeking alternatives to traditional tobacco products. While the market remains relatively small, the relaxed regulatory environment and limited government oversight offer a favorable climate for expansion. This article will provide a detailed overview of the market size, regulatory environment, consumer behavior, supply chain dynamics, and opportunities for local brands.

Market Size

Pakistan’s e-cigarette market is expected to reach USD 77.2 million by 2024, with a compound annual growth rate (CAGR) of 1.36% from 2024 to 2029. Some sources estimate the number of e-cigarette users in Pakistan to be approximately 175,000 as of 2024. However, based on our own field visits and local market research, we have found that the actual penetration of e-cigarettes is significantly higher than this figure, suggesting that the true number of users may be much larger. The increasing demand for alternative nicotine products suggests that the sector has promising prospects.

Regulatory Environment

Currently, the sale of nicotine-containing e-cigarettes is legal in Pakistan, but there are no specific regulations governing the industry. Retailers have adopted self-regulation, limiting the sale of these products to minors and refraining from aggressive marketing. The absence of stringent regulations allows for greater market flexibility, creating opportunities for both local and international brands to thrive.

    1. Under the 2023/2024 customs tariff, imported e-cigarette devices are subject to a 20% duty.

    2. E-liquids are taxed at PKR 10 (USD 0.04) per ml.

The lack of advertising restrictions allows international and local brands to establish a strong market presence with minimal governmental interference.

Popular Brands

Pakistan's vape devices are primarily sourced from China, with major brands like Vaporesso, Geekvape, Voopoo, OXVA, and Uwell dominating the market. These brands cater to a wide range of consumer needs, from entry-level products to high-end devices. Meanwhile, the e-liquid sector is led by well-known brands from the US, UK, and Malaysia, including IVG, Naked100, VGOD, and Nasty.

Additionally, many local Pakistani brands collaborate with Chinese manufacturers to develop their own branded products. This approach allows local companies to leverage China’s advanced manufacturing capabilities while tailoring their product offerings to meet the preferences of local consumers.

Consumer Behavior

Traditional tobacco products like Paan and Naswar remain popular among older consumers in Pakistan. However, younger adults are increasingly turning to e-cigarettes as a healthier alternative to conventional tobacco. The relatively lower health risks and the variety of flavor options offered by vaping have made e-cigarettes popular in urban areas. Furthermore, the government’s 2017 ban on Shisha (due to health concerns) has prompted some former users to explore e-cigarettes as an alternative.

Local Brand Opportunities

Now is an opportune moment for local brands to enter the market. As consumer awareness grows, driven by international brand education, there is an expanding user base with increased familiarity and acceptance of e-cigarette products. Additionally, no local brand has yet achieved market dominance, providing a clear window of opportunity for domestic players.

Local brands can capitalize on their understanding of local consumer preferences and leverage localized marketing strategies and efficient distribution channels. Compared to international competitors, domestic brands can adapt more swiftly to local market demands and cultural nuances. Furthermore, local companies can establish closer relationships with distributors and retailers, ensuring more control over their supply chains and retail presence.

How Has Hangsen Supported Customer Success in Pakistan?

Hangsen has established itself as a key player in Pakistan’s e-cigarette industry by providing comprehensive OEM services for local brands. With a strong global supply chain and extensive manufacturing expertise, Hangsen helps domestic companies launch high-quality, customizable e-liquids that are specifically tailored to the needs of the local market. Many local brand customers in Pakistan have already experienced success through partnerships with Hangsen.

Our Key Advantages

1. Customized Formulations: Hangsen offers tailor-made e-liquid formulations to suit the specific tastes of Pakistani consumers.

2. High Production Standards: By adhering to globally recognized production standards, Hangsen guarantees the safety and consistency of its products.

3. Cost Efficiency: Hangsen’s optimized supply chain enables local brands to reduce production costs while maintaining high product quality.

4. Rapid Market Entry: By providing end-to-end OEM services, Hangsen accelerates local brands' time to market, helping them secure a competitive edge in the growing e-cigarette market.

By partnering with Hangsen, local Pakistani brands can gain access to premium products, benefit from global expertise, and enhance their market strategies, positioning themselves for long-term success in the rapidly evolving e-cigarette sector.

For more service information, please contact us at service@hangsen.com

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Hangsen is a world-leading e-liquid manufacturer, offering custom flavor solutions for vape devices and premium white-label e-liquid services. Our e-liquids are renowned for their high consistency, stability, safety, and regulatory compliance. With business operations spanning over 80 countries and regions worldwide, Hangsen continues to set industry standards.