British American Tobacco (BAT) plans to introduce its product “VUSE” to the Korean market in the middle of this month, according to the Korea Economic Daily.
It is reported that VUSE is an e-cigarette brand launched by Reynolds Tobacco in 2013, and British American Tobacco (BAT) integrated this atomized e-cigarette brand into its own group business after acquiring Reynolds Tobacco (RJ) in 2017. However, as the South Korean subsidiary of BAT, it has also launched the atomized e-cigarette brand in the South Korean market.
Previously, KT&G launched its e-cigarette product “Lil Vapor” in May 2019, but stopped selling it the following year. JUUL, which once held more than 70 percent of the e-cigarette market in the United States, also withdrew from the South Korean market just one year after entering the market in 2020.
In October 2019, the South Korean Ministry of Health and Welfare issued a statement “strongly recommending cessation of the use” of e-cigarettes. At the time, the government issued such an advisory following a spate of severe lung injuries linked to e-cigarettes in the United States. A year later, in 2020, e-cigarette sales fell by 97.6% compared to last year, and e-cigarette products themselves were withdrawn from the market.
According to market research firm EuroMonitor, BAT’s share of heated tobacco products in Korea in 2022 is 11%, ranking third after KT&G (49%) and Philip Morris (PMI) (40%).
South Korea Economic News said in the report that the current South Korean atomized e-cigarette market, “Bubble Mon” e-cigarette brand operating companies and related e-cigarette stores dominate. It is worth mentioning that Bubblemon (Huizhou Babo Technology Co., LTD.) was once a wholly-owned subsidiary of China Bolton Group and was established in Huizhou Huicheng District High-tech Industrial Park in May 2021. The company manufactures disposable e-cigarettes under the BUBBLEMON and MONS brands. On July 10, China Bolton announced that it sold 51% of its South Korean subsidiary Bubblemon for 100 million yuan.
South Korean tobacco industry sources said:
“Overcoming consumers’ unease about vaping is key.”
Observing the current market, he said that due to the government’s suspension proposal, large enterprises have withdrawn from competition in this field, which will have a positive impact on the atomized electronic cigarette market.
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