WARNING: This product contains nicotine. Nicotine is an addictive chemical.
In several regions globally, vaping faces growing limitations. However, in China, the epicenter of e-cigarette production, the sector is experiencing unprecedented growth. Dutch journalist Roland Smid journeyed to this hub, where millions of e-cigarettes are manufactured daily. He conducted an in-depth interview with Frank Fan, the founder of KEYSTONE, a leading e-cigarette firm, delving into the intricacies of the e-cigarette industry.
Shenzhen, often referred to as the “Valley of E-cigarettes,” is a bustling epicenter of e-cigarette manufacturing, housing approximately 500 factories dedicated to producing these devices. This city is a global marketplace where buyers from every corner of the world can easily place orders online from a myriad of local suppliers. The process is remarkably efficient – within just weeks, customers can expect to receive their orders, consisting of thousands of e-cigarettes, available in an array of colors and a diverse spectrum of flavors.
The particular factory in Shenzhen that RTL Nieuws had the opportunity to visit epitomizes the relentless pace of the industry. Here, production is a ceaseless endeavor, operating around the clock, 24 hours a day, seven days a week. The facility buzzes with activity, as workers meticulously assemble and package e-cigarettes, ensuring a constant flow of products ready to meet the ever-growing global demand. This unending cycle of production not only highlights the city’s pivotal role in the e-cigarette market but also underscores the sheer scale and efficiency of Shenzhen’s contribution to the industry.
KEYSTONE, a prominent player in the vaping industry, stands out as a manufacturer specializing in both ODM (Original Design Manufacturing) and OEM (Original Equipment Manufacturing) services, catering to top-tier vape brands worldwide. A notable aspect of KEYSTONE’s strength lies in its workforce, where 80% of the employees boast over a decade of dedicated R&D experience in the vaping sector, having previously held significant positions in leading vape companies. This deep-rooted expertise ensures a comprehensive understanding of the entire supply chain, from design to delivery.
In addition to providing services to other brands, KEYSTONE is also carving out its niche by developing its own vape brand. This initiative is not just an expansion of its business portfolio but a strategic move to establish a more direct connection with consumers and to further solidify its presence in the market.
The journey of KEYSTONE began on 1 August 2022, marked by the founders’ commitment to a consumer-centric approach, focusing on the health and well-being of vaping enthusiasts. Driven by a vision to create vaping products that are not just popular but also sustainable, KEYSTONE aims to revolutionize the vaping experience. Their goal is to offer a range of vapes that are not only loved for their quality but also contribute to an optimal, environmentally conscious vaping experience. This commitment to health, innovation, and sustainability is what sets KEYSTONE apart in the rapidly evolving world of vaping.
Fan’s perspective on the potential challenges facing the e-cigarette industry is marked by a pragmatic and global outlook. He acknowledges the possibility of regulatory changes, such as the Netherlands potentially banning e-cigarettes, but he remains undeterred. Fan explains, “If the Netherlands bans e-cigarettes, there are many other countries in Europe. If the EU bans them, there are many other markets. It’s that simple.” This statement reflects a confidence in the adaptability and resilience of the e-cigarette market.
Further emphasizing the breadth of opportunities in the industry, Fan highlights the Middle East as a particularly promising market. In this region, e-cigarettes are gaining traction as a modern alternative to the traditional shisha. Fan notes the increasing popularity of these devices in the Middle East, underscoring the region’s potential for growth in the vaping sector. His insights reveal a strategic understanding of the diverse cultural and consumer trends that can influence the global demand for e-cigarettes.
The e-cigarette industry in China is a burgeoning sector, with recent research reports indicating that its value exceeds 1 billion euros. This impressive figure highlights the immense scale and potential of the market within the country. What’s more, the industry is poised for even greater expansion in the upcoming years, driven by a combination of innovation, increasing consumer demand, and evolving market dynamics.
One of the key factors contributing to this growth is the emergence of “new” markets. These markets represent regions or consumer segments that are relatively untapped or have recently shown an interest in e-cigarettes. The potential in these new markets is vast, often surpassing the efforts of those markets that are currently focused on revolutionizing or reinventing e-cigarette products and experiences.
This trend towards expansion into new areas is not just a reflection of the growing global interest in vaping but also a testament to the industry’s adaptability and responsiveness to new opportunities. As these new markets develop, they offer fresh avenues for growth, diversification, and innovation, ensuring the continued robustness and relevance of the e-cigarette industry on a global scale.
KEYSTONE’s ambition to not just be a behind-the-scenes player but also a recognized name among end-users in the vaping community. KEYSTONE aims to set new standards in the industry by providing high-quality, environmentally conscious vaping experiences, thereby resonating with a broad and evolving consumer base. This commitment to health, innovation, and sustainability reflects KEYSTONE’s dedication to being a leading force in the vaping industry.