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In boardrooms across the vape industry, executives are holding two very different documents in their hands.
In one, an ambitious project roadmap built on last year’s growth assumptions.
In the other, newly released regulatory policies that quietly rewrite the rules of survival.
The question is no longer whether the industry will change — it already has.
The real question is this:
Do you continue expanding with outdated, low standards, or do you upgrade now and build for long-term sustainability?
The answer will decide who stays — and who disappears.
The vape industry is undergoing a structural reset.
According to the December 2025 “E-Cigarette Supervision Status Report”, China’s regulatory framework has significantly corrected past market disorder. Illegal products have been largely eliminated, and a more orderly competitive environment is taking shape.
Regulators have made their intentions clear:
This marks the official end of the low-threshold, copy-and-scale era.
Under the latest Technical Review Guidelines for E-Cigarette Products, all vape products sold domestically must pass a comprehensive technical evaluation. This is not just a product test — it is a full audit of a company’s standards, systems, and discipline.
In this environment, every internal standard becomes a survival decision.
Vaping is no longer a simple consumer product business — it is a technology-intensive, compliance-driven industry.
Recruitment data for the 2026 graduate intake shows a clear trend: leading companies are raising their hiring thresholds sharply.
Top players are assembling teams with backgrounds from:
In contrast, many smaller vape companies still operate under a “good enough to execute” hiring mindset. The result is predictable: homogeneous teams, weak innovation, and limited scalability.
High-standard companies treat talent as long-term capital, not short-term cost.
That single mindset difference often determines whether a company can evolve — or stall.
Vape products directly impact consumer health.
That makes product safety the industry’s absolute red line.
The implementation of GB 41700-2022, China’s mandatory national e-cigarette standard, sets a clear baseline. But meeting the baseline is no longer enough.
To pass technical review, companies must submit 11 categories of documentation, including:
This process forces companies to build end-to-end quality control systems, from raw materials to finished goods.
Industry leaders have gone even further:
By moving scientific research upstream, these companies shift safety from compliance-driven to science-driven.
Meanwhile, companies that still operate with a “pass inspection and move on” mentality are increasingly exposed. Regulators are actively pushing toward digital supervision and full traceability systems.
Low standards do not survive in a fully transparent system.
In today’s vape industry, compliance is no longer a strategic choice — it is a mandatory condition for existence.
Since October 1, 2022, all vape market participants in China must obtain tobacco monopoly licenses and operate strictly within regulatory frameworks.
A robust compliance standard has three layers:
Domestically, products must meet mandatory national standards and pass technical review. This requires full-process compliance, from sourcing to sales.
Internationally, the challenge intensifies. Regulations vary widely:
Successful global companies design market-specific products, rather than forcing one model into all regions.
Compliance is no longer about avoiding penalties — it is about earning the right to compete.
As companies scale, management standards become a growth bottleneck.
The vape industry is uniquely complex:
Manual or fragmented management systems simply cannot keep up.
Leading companies are upgrading through:
Some enterprises now automatically convert warehouse movements into financial records, improving both accuracy and decision speed.
For cross-department collaboration, real-time dashboards synchronize procurement, production, and inventory data — reducing communication friction and improving market response times.
The real challenge is balance
Companies that master both gain a structural advantage that is difficult to replicate.
At the highest level, vision itself is a standard.
Low-standard companies tend to focus on short-term gains. High-standard companies set goals that extend beyond immediate profits.
Clear vision shapes behavior:
Policy direction supports this shift. Draft regulatory guidance explicitly encourages vape manufacturers to:
In practice, this difference is most visible in R&D spending. High-standard companies invest in foundational research, while low-standard players rely on imitation and rapid iteration.
Vision determines how far a company can see — and how far it can go.
The vape industry is in the middle of a hard reset.
From unchecked expansion to strict regulation, from chaotic growth to structured competition, the ecosystem is being rebuilt.
Companies that relied on momentum without standards are already disappearing. Those that invested early in quality, compliance, and systems are gaining ground.
For vape industry leaders, the path forward is clear:
The winter is real — but so is the opportunity.
For companies willing to elevate their standards across every dimension, this moment may become the foundation for the next decade of sustainable growth.
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