KUALA LUMPUR: The domestic vape industry has grown fast, becoming a valuable economic contributor to the country, a new preliminary industry data show.
The 2022 data showed the industry was valued at RM2.27 billion in 2019, and at present, the industry has grown its retail value by 9.6 per cent to RM2.49 billion.
However, compared to 2019, the number of vape speciality stores has declined, from 3,000 to 2,250, likely due to the pandemic that forced many vape outlets to fold over the past few years.
At the same time, the findings also indicate that the industry has expanded its sales channels, with vape products now also available in general stores.
According to the Malaysian Vape Chamber of Commerce (MVCC) findings, some 7,500 general retail stores have also started trading vape products.
Based on MVCC's latest estimation, the number of manufacturers stands at 200, while the number of importers has increased to 100.
In this regard, MVCC estimates that the vape industry now provides direct and indirect employment to 31,500 workers involved in the vape industry.
MVCC secretary general Ridhwan Rosli said these findings indicate the industry's strong potential and resilience despite the pandemic's adverse effects.
"Beyond creating more employment opportunities for many Malaysians, the vape industry has also evolved to strengthen its SME ecosystem and attract more investments.
"The industry is also poised to contribute significant revenue for the country, with economic analysts estimating that the government could collect up to RM1 billion in excise tax revenue from the industry once regulations kick in and send confidence to investors to pour more domestic and foreign investments.
"We also estimate that the number of vape consumers in Malaysia has increased to between 1.4 and 1.5 million users, as preliminary data show the sales volume of vape products on the market has increased.
"This further adds to the urgency of regulations to ensure Malaysian vape consumers have access to products that are regulated with quality and safety standards," he said in a statement today.
These findings are part of a comprehensive industry report undertaken by MVCC.
Full data will be published in the coming months, covering retail trends and consumer habits.