1. Promoting the development of electronic cigarette with the concept of environmental protection and health

2. Increasing the tax burden of tobacco and promoting the innovation of tobacco products

3. Huge market capacity drives demand growth

4. The cost performance of e-cigarettes continues to rise

5. The degree of industry concentration and branding has been improved

(1) With the improvement of environmental protection concept, promote the demand for tar free and harmless e-cigarettes, and break people’s consumption pattern of traditional tobacco;

(2) The increase of tobacco tax rate has prompted the industry and consumers to turn their eyes to electronic cigarette products;

(3) Chinese smokers account for one third of the world, and there is a huge space for the development of the domestic market;

(4) With the progress of technology and the large-scale mass production of e-cigarettes, the price of e-cigarettes tends to be popular, the cost of long-term use is lower than that of traditional tobacco, and the cost performance is continuously improved;

(5) More than 4000 enterprises across the country are facing reshuffle and intensified industry integration. After market elimination, the concentration of e-cigarette enterprises and the competitive advantage of e-cigarette leading enterprises are expected to be improved. The Branding Trend of e-cigarette industry will increase, and the research and development of product terminal type, function design and design color will continue to improve, so as to promote benign competition in the industry.