Pakistan’s Vaporizer Market: A $180 Million Growth Powerhouse by 2030

Pakistan’s Vaporizer Market: A $180 Million Growth Powerhouse by 2030

Pakistan, the fifth most populous country globally, is not only a South Asian economic powerhouse but also a burgeoning hub for tobacco consumption. With a population of 240 million, Pakistan’s vaporizer market is capturing the attention of industry players worldwide.

Pakistan has a long history of tobacco use, and its vast smoker base lays a solid foundation for the vaporizer market’s growth. As the trend towards harm reduction in tobacco products gains momentum, an increasing number of consumers are turning to vaporizers and nicotine pouches, reflecting a pursuit of healthier living and presenting a significant market opportunity for vaporizer brands. This shift is attracting the interest of numerous vaporizer companies and seasoned industry professionals.

Massive Market Growth Potential, Projected to Reach $180 Million by 2030

Estimates suggest that the size of Pakistan’s vaporizer business in 2023 has reached $74.3 million, with a projected growth of over 150% in the next five years, potentially exceeding $180 million by 2030. This growth trend indicates the vast development space and commercial potential of Pakistan’s vaporizer market.

According to a 2023 report by BOL NEWS, approximately 25 million people in Pakistan smoke, with about 1.5 million using vaporizers and over 15 million using snus.

Pakistan’s First Vaporizer Expo Attracts Major Brands

To further activate the vaporizer market in Pakistan, the MOFF VAPE SHOW PAKISTAN, the country’s first vaporizer exhibition, was held at the Pakistan-China Friendship Center in Islamabad, attracting global vaporizer brands and local wholesalers, distributors, and agents. This event not only fostered industry collaboration but also provided a platform for vaporizer brands to enter the Pakistani market.

Currently, Pakistan lacks clear regulations on vaporizers, making it a blue ocean market worth exploring for vaporizer brands. Sales channels in Pakistan are primarily through specialty stores, with some brands also available in 3C digital shops. Several vaporizer brands, including RELX, UNO, VUSE, ELFBAR, TOKYO, and ARTISAN, have entered the Pakistani market.

Pakistan Manufacturing 3.0 Plan, Expected to Increase Annual Foreign Exchange Earnings by $100 Million

Pakistan Tobacco Company (PTC), a subsidiary of British American Tobacco (BAT) and Pakistan’s first multinational company, has contributed over 680 billion rupees (approximately $8.1 billion) to the national treasury over the past five years.

In April 2019, PTC launched its “Made in Pakistan” initiative, focusing on exporting cigarettes and tobacco to various countries. This initiative has already brought in over $157 million in revenue for Pakistan’s economy.

Building on this success, the “Made in Pakistan 3.0 Plan” aims to further enhance Pakistan’s economic status and expand its global market influence. Introducing Velo nicotine pouches to the Japanese market is expected to generate annual foreign exchange earnings of up to $100 million, providing a strong boost to Pakistan’s economic development and international influence.

Intensified Brand Competition and the Rise of Local Brands

MOKI Technology observes that the entry of international vaporizer brands into the Pakistani market has intensified competition. These international brands typically possess advanced technology, a rich product line, and strong marketing capabilities. However, local enterprises in Pakistan are also recognizing the potential of the vaporizer market, with several local brands on the rise. These local brands, with their understanding of the local market and consumer needs, are poised to secure a competitive edge by offering products that align with Pakistani consumer tastes and cultural characteristics. The future will see more intense brand competition, with localization becoming a significant market direction.

High Growth in the US, Pakistan and South Africa as International Growth Engines

Philip Morris International (PMI) reported a 24.7% increase in heated oral nicotine unit shipments (pouches or equivalent units increased by 22.2%) in the third quarter, thanks to the growth of Zyn in the US. As one of the world’s key consumer markets, the US saw Zyn shipments reach 149.1 million cans, a 41.4% increase compared to the previous year, highlighting Zyn’s popularity among US consumers and the strong market demand.

Outside the US, the volume of nicotine pouches increased by about 70%, with Pakistan and South Africa contributing significantly. In Pakistan, both the consumer pursuit of healthier alternatives and the maturation of the local market environment provide fertile ground for the development of nicotine pouch products.

Tightening Regulatory Policies in Pakistan

This year, Pakistan has been issuing new policies to restrict vaporizers. For example, Khyber Pakhtunkhwa implemented a 60-day temporary ban on the use of vaporizers, vaporizer devices, and nicotine products in public places in Peshawar to protect public health from the significant impact of these products.

Additionally, Haripur city announced a 90-day ban starting September 6, 2024, prohibiting the use, sale, and promotion of vaporizers and related nicotine products in public places, especially targeting people under 21, and restricting sales and storage around schools and hospitals.

The Mirpur government has outright banned the sale and use of harmful smoking products such as vaporizers and hookahs, warning that violators will face legal sanctions. These measures demonstrate Pakistan’s strict stance on vaporizer regulation, aiming to reduce the potential impact of vaporizers on public health, especially among adolescents.

MOKI Technology believes that Pakistan’s vaporizer market is in a rapid development phase with enormous potential but also faces regulatory and health challenges. As the market size continues to expand and regulatory policies are refined, the future of Pakistan’s vaporizer market will become more diversified and standardized.