August 2026: China’s Vape Exports Hit 2026 Peak at $1.047 Billion as U.S. Demand Surges
China’s exports across vaping products reached $1.047 billion in July 2026, marking a 16.5% year-over-year increase and the highest monthly total of the year. According to China Customs data, the expansion was heavily concentrated in the United States, where shipments surged 53.5% to $404.2 million while combined exports to all markets outside the U.S. rose by just 1.2%.
The strong July performance accelerates a sequential recovery following an export low in April 2026, when shipments dropped 20.4% year-over-year to $704.5 million following adjustments to China’s export rebates. Cumulative exports for January through July reached $6.008 billion, up 5.8% from the same period in 2025. July’s surge also fundamentally reshaped the trajectory of U.S.-bound shipments: after falling 13.0% year-over-year in the first five months of 2026, cumulative exports to the U.S. reached $1.981 billion by the end of July, an 8.4% increase year-to-date.
By product classification, overall growth was overwhelmingly driven by nicotine-containing non-combustible products (Commodity code: 24041200, primarily vapes and prefilled pods) which grew 24.7% globally to $716.7 million. Electronic vaporization device hardware (Commodity code: 85434000) fell 0.4% globally to $313.3 million, while emerging nicotine-substitute products (Commodity code: 24041990) rose 88.9% to $16.9 million but remained a small fraction of overall volume.
Outside the U.S., market performance was fragmented, though global trade remained heavily concentrated in major key markets. China Customs figures show that the Top-10 destination countries accounted for a combined 79% share of total exports, while the remaining 104 receiving countries made up the rest. Significant growth was recorded in South Korea (+62.9% to $51.1 million), Indonesia (+46.6% to $24.0 million), Japan (+28.6% to $37.8 million), and Saudi Arabia (+114.4% to $12.4 million). However, these gains were nearly offset by contractions in several established European and Asian markets, including Germany (-31.7%), Malaysia (-34.3%), Spain (-45.8%), and the United Kingdom (-6.9%).
July 2026: Shopify Imposes Global Ban on All Vape and E-Cigarette Sales
In a major blow to the online e-cigarette market, Ottawa-based e-commerce giant Shopify has officially banned the sale of all vaping products on its web-hosting platform. The sweeping move follows intense pressure from a bipartisan coalition of U.S. state and city law enforcement authorities trying to curb the online distribution of unauthorized and illegal nicotine products.
The shift follows a strict timeline of rapid platform changes:
– June 24, 2026: Shopify issued a notice to merchants using its services, instructing them to pull all e-cigarette and vape products from their online storefronts.
– July 8, 2026: This was the hard deadline set by Shopify for merchants to comply. Those who failed to remove the products by this date faced product suspension or complete store termination. It was later confirmed the notice was authentic and reported that Shopify’s decision would apply globally, forcing even international sellers off the platform.
While law enforcement initially pressured Shopify to clamp down on the widespread online sale of illicit, unauthorized disposable vapes, Shopify’s new policy, however, applies to all vape products. This blanket restriction means that even fully authorized, legal nicotine brands are losing access to the platform’s vital e-commerce infrastructure. In the notice sent to merchants, Shopify explained its decision: “Due to changes in legal restrictions on the sale of Electronic Nicotine Delivery Systems (ENDS), Shopify no longer supports the sale of these products.”
The enforcement follows months of discussions with a coalition of attorneys general from states including California, Illinois, and Arizona, alongside local authorities in New York City, the District of Columbia, and Puerto Rico. The same coalition has been pushing other major financial infrastructure entities, including Mastercard, to enact similar restrictions. California Attorney General, who co-led the coalition, praised the decision, stating that the change will significantly reduce the sale of illegal nicotine products in the U.S. and help protect public health.
July 2026: ITM Semiconductor Scales Up E-Cigarette Production with New Indonesian Facility
ITM Semiconductor, a South Korean electronics component manufacturer traditionally specialized in secondary battery protection circuits, is rapidly pivoting toward the global e-cigarette market. The company announced that mass production has begun in earnest at its newly established Indonesian subsidiary, positioning the e-cigarette sector as a primary engine for its overseas business. The shift is already reflecting strong financial returns. In the first quarter of 2026, ITM recorded ₩42.1 billion (US$31.5 million) in e-cigarette sales – a 55.4% surge compared to the ₩27.1 billion generated during the same period last year. This burgeoning sector now accounts for roughly 32% of the company’s total revenue, cementing its place alongside ITM’s legacy protection circuit and sensor businesses.
To meet soaring international demand, ITM completed construction on a 13,000-square-meter local production base in Cikarang, Indonesia in July 2025. Mass production of electronic nicotine delivery (END) devices officially kicked off at the 9,500-square-meter facility in January 2026. According to ITM, the Cikarang plant has successfully established a systematic quality control system manned by specialized personnel to meet the standards of global clients. ITM is already securing additional physical space to expand its production lines to accommodate incoming orders.
A primary catalyst for this industrial expansion is ITM’s role as a prominent original design manufacturer (ODM) and exclusive supplier for KT&G. ITM manufactures and delivers devices and liquid cartridges for KT&G’s lil Hybrid e-cigarette lineup. Having initially served as the exclusive cartridge supplier for the brand, ITM recently secured ongoing development and manufacturing contracts for newer generations, including the lil Hybrid 4.0. The new factory in Indonesia acts as a critical hub for KT&G’s strategic international export models.
June 2026: China’s Vape Exports Hold Steady at $4 billion YTD Despite U.S. Market Decline
According to recent China Customs export data, China’s vape-related exports fell 10.3% year-on-year to US$728 million in May 2026. Despite the monthly fluctuations, the cumulative year-to-date (YTD) export value remained broadly stable, dipping just 0.9% to reach $4 billion.
The United States remains the single largest destination for Chinese vapes, bringing in $1.25 billion. However, driven by a 13.8% YTD decline, the U.S. share of total Chinese vape exports dropped significantly – from 38.7% in fiscal year 2025 (FY25) to 31.1% in 2026. This downturn is largely attributed to increased U.S. customs and regulatory enforcement against illicit disposable vapes originating from China. It remains to be seen whether Chinese exporters can find a “window of opportunity” in the second half of the year to reverse this trend, similar to the market dynamics observed during the 2025 partial U.S. government shutdown.
Meanwhile, the United Kingdom and Germany maintained their positions in the top three. Overall market concentration has slightly loosened: the top 10 export markets now account for roughly 75% of the total, down 7 percentage points from FY25 as shipments diversify into alternative regions.
Several secondary markets posted explosive growth in 2026, though each faces unique structural or regulatory headwinds. Russia led the surge with $190 million (up 59%), followed by the UAE at $177 million (up 24%), Japan at $174 million (up 71%), and Indonesia at $102 million (up 40%). However, much of this regional momentum comes with caveats. The UAE operates primarily as a transshipment hub for global distribution networks rather than a domestic consumer base. In Japan, nicotine-containing vapes remain classified as unauthorized medical products, casting doubt on the long-term sustainability of this growth. Meanwhile, Russia is actively advancing multiple federal and regional regulatory crackdowns aimed at curbing youth vape consumption.
March 2026: GEEK BAR Launches SPARK Pod System in Europe
GEEK BAR has announced its return to the European market with the launch of SPARK, a next-generation pod system positioned as a more sustainable and regulation-aligned alternative to disposable devices.
The brand previously built recognition in Europe for its flavor range and product quality before establishing a strong presence in the United States, one of the world’s most competitive vaping markets. Products such as the GEEK BAR PULSE and PULSE X series contributed to significant cumulative sales volumes and strengthened the company’s position among adult consumers. The European re-entry marks a strategic shift toward longer-term market participation, with greater emphasis on compliance, transparency and environmental considerations.
SPARK represents a move beyond disposable formats into a reusable pod platform tailored for European regulatory requirements. The device features a “Starlit Motion Screen” that displays battery status through an animated interface designed to enhance usability. It is equipped with a high-voltage battery capable of charging to 80% in approximately 20 minutes and delivering sufficient power for up to two full pods per cycle. The platform supports both prefilled and refillable pods. The 1.1Ω prefilled pod delivers up to 1,000 puffs, while the 0.8Ω refillable version is compatible with up to 20 mL of e-liquid refills. Additional pod formats are in development to broaden the system’s compatibility and longevity.
For the European market, GEEK BAR has introduced a flavor lineup adapted to regional preferences, including Moonshine Cherries, Tropical Punch, Pineapple Lemon Fizzy and Apple Cider. The formulations are described as offering more natural fruit profiles with reduced cooling intensity. The company states that its European rollout will be supported by enhanced supply-chain oversight, closer engagement with retail partners and a stronger focus on regulatory compliance. SPARK will begin launching in selected European countries this month, with further market expansion planned.
January 2026: China’s Vape Exports Fell to $10.6 Billion in 2025
China’s e-cigarette exports declined by 3.3%, from $10.96 billion in 2024 to $10.6 billion in 2025, according to trade data released by the General Administration of Customs of China. The U.S. remained the leading destination, accounting for c.39% of total exports, while the top ten markets together represented around 88% of the total.
December 2025: China exported $1.1 billion worth of vapes in November 2025
China exported $1.096 billion worth of vapes in November 2025, down 0.2% from October 2025. Decline in exports to the key U.S. market (-7% month-over-month) was mostly offset by an increase in exports to the UK, Germany, South Korea and Russia. Despite the decline, the U.S. market still has a 50% weight in total Chinese vape exports and the Top-10 markets make up 82% of the total export value. Indonesia replaced Japan in the Top-10 market list as the exports to the Japanese market continue to decline from a high of US$39.6 million in August 2025.
| Rank | Country / Region | November ($ Mn) | Weight | October ($Mn) | Change ($ Mn) | ∆% | |
| 1 | United States | 549.1 | 50% | 591.0 | -41.8 | -7% | |
| 2 | United Kingdom | 83.1 | 8% | 72.0 | +11.1 | +15% | |
| 3 | Germany | 58.6 | 5% | 53.9 | +4.7 | +9% | |
| 4 | South Korea | 45.5 | 4% | 34.4 | +11.1 | +32% | |
| 5 | UAE | 35.6 | 3% | 36.7 | -1.1 | -3% | |
| 6 | Malaysia | 31.9 | 3% | 34.4 | -2.5 | -7% | |
| 7 | Russia | 26.5 | 2% | 21.4 | +5.1 | +24% | |
| 8 | Canada | 26.2 | 2% | 24.4 | +1.9 | +8% | |
| 9 | Crotia | 21.0 | 2% | 20.0 | +1.0 | +5% | |
| 10 | Indonesia | 16.5 | 2% | — | — | — | |
| Total | 1,096 | 100% | 1,098 | -2 | -0.2% |
Importantly, export destination is not necessarily the final destination of distribution to the retail. For instance, UAE is a transhipment point for further distribution to the Middle East & North Africa, while Crotia is a re-export location for the South-east Europe (Balkans). Moreover, France is one of the largest vape markets in the world; but, it does not appear in the list of Top-10 export destinations.
