Research on Synthetic Nicotine industry of electronic cigarette
Due to the lack of supply channels for nicotine by synthetic method, domestic e-cigarette manufacturers used to mainly use nicotine by extraction method. Due to the strict supervision of tobacco by China tobacco, the supply of nicotine is in short supply, resulting in the price of nicotine by extraction method has increased by 3-4 times, and the current price has reached about 6 million per ton. However, the proportion of nicotine in the whole cost is not high. Even if the price of nicotine increases by about 3 ~ 4 times, the cost increase in each cigarette bomb is only about 10 cents. E-cigarette manufacturers are not sensitive to nicotine prices.
The price of nicotine by synthetic method is more expensive than that by extraction method. Nextgenerationlabs (NGL) is the main supplier of high-purity e-cigarette nicotine in the United States, with a price of about 12 million per ton.
Jincheng pharmaceutical is the first company in China to be able to mass produce high-purity (more than 99.5%) nicotine on a large scale. 50 tons will be put into operation this year, 200 tons will be produced next year, and an additional 300 tons will be planned for long-term production capacity. Moreover, the Synthetic Nicotine technology in Jincheng is said to be very powerful. Patents have been applied for at home and abroad. The cost is much lower than that of American NGL, which can be close to the extraction method. Another domestic Rundu Co., Ltd. also has the industrial planning of Synthetic Nicotine, but the progress is slower than Jincheng, and the product quality is unknown.
Nicotine is now an important link of China tobacco to the business card neck of electronic cigarette factory. If e-cigarette enterprises do not get enough nicotine, they will not be able to fully release their production capacity, and then they will not be able to deliver enough. Therefore, domestic e-cigarette enterprises are looking forward to the Synthetic Nicotine. Many domestic electronic cigarette manufacturers are already looking for Jincheng. However, although China tobacco has no relevant provisions on synthetic nicotine, it is likely that relevant regulatory measures will be introduced in the future. The industry believes that the most likely regulatory measure is nicotine quota, which restricts the production capacity of e-cigarettes.
The actual demand for Synthetic Nicotine is huge, but whether it can be fully released in China depends on future regulatory policies. However, the overseas demand for Synthetic Nicotine is also huge, so there is no worry about the export market. At present, there are no policy restrictions on the export of nicotine.
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