The Ministry of Health and Welfare of the National Assembly submitted a report titled “In-depth Analysis and Research on the Domestic Circulation Market of Tobacco Products and Smoking Behavior” on the 10th, showing that the sales of e-cigarettes in the third quarter of 2024 amounted to 19.9 billion won (about 14 million U.S. dollars), an increase of 24.6 percent over the same period in 2023. During the same period, sales of heated tobacco increased by only 2%, while sales of cigarettes decreased by 3.4%. E-cigarettes are particularly prominent in the market.
According to the report, the proportion of synthetic nicotine products in e-cigarettes in 2023 is as high as 97.2%, and natural nicotine accounts for 2.8%. Imports of natural nicotine increased from 554 tons in 2022 to 555 tons in 2023, an increase of less than 1%, while imports of synthetic nicotine soared from 121 tons in 2022 to 216 tons in 2023, an increase of up to 80%. Even though natural nicotine imports are higher in volume, synthetic nicotine has quickly captured the market through its efficient production capacity.
By June 2024, South Korea’s imports of synthetic nicotine had reached 162 tons, three quarters of the previous year’s total imports in just six months.
As the team notes in their report,
“Before synthetic nicotine regulatory discussions took place, the e-cigarette industry was already leading the way by introducing nicotine-free or low-nicotine products. The emergence of these nicotine analogues has made market changes more complex and difficult for even experts to keep up quickly.”
South Korea’s National Assembly was scheduled to discuss the possibility of including synthetic nicotine in tobacco regulation last month, but the proposal remains on hold as the e-cigarette industry questions the reliability of the research and stresses the right to survival.