Smoore International (06969.HK), a global leader in atomization technology solutions, has kicked off 2026 with a standout first-quarter performance—one that says as much about the company as it does about the future of the entire industry.
The numbers are hard to ignore.
The company reported revenue of approximately RMB 3.856 billion, marking a 41.7% year-over-year increase. Even more striking, its Heated-Not-Burn (HNB) segment generated RMB 664 million in revenue—up an astonishing 1324.9%.
This isn’t just growth. It’s a signal.
Behind these results lies a deeper shift in the global atomization landscape—one defined by structural change, technological evolution, and regulatory alignment.
Based on recent market research from Frost & Sullivan (March 2026), three major trends are shaping the next phase of the industry.
1. A Stable but Evolving Vaping Market: Closed Systems Are Taking Over
Despite regulatory pressure and market fluctuations over the past few years, the global vaping device market continues to grow steadily.
- 2021–2025 CAGR: ~8.9%
- 2025–2030 projected CAGR: ~9.1%
But the real story is not growth—it’s where that growth is happening.
Closed-system devices are clearly winning.
- Closed systems CAGR (2021–2025): ~11.0%
- Projected CAGR (2025–2030): ~10.6%
- Open systems CAGR (2021–2025): ~3.1%
This gap reflects a broader shift in both consumer behavior and regulatory expectations.
Closed systems offer:
- Simplicity and convenience
- More consistent quality control
- Better compliance with tightening regulations
In other words, they fit the direction the industry is being pushed toward.
By 2025, the global vaping and atomization market reached approximately $19.6 billion, and it’s expected to grow to $37.4 billion by 2032, with a CAGR of around 10%.
Smoore is well positioned here. The company maintained its status as the world’s largest vaping device manufacturer in 2025, with a market share of about 14.5% (up from 13.1% in 2024).
Its B2B segment alone generated RMB 3.267 billion in Q1 revenue, up 48.6% year-over-year—largely driven by demand for compliant, closed-system solutions.
2. HNB Is No Longer “Emerging”—It’s Exploding
If vaping represents steady growth, HNB is where the real acceleration is happening.
Smoore’s 1324.9% surge in HNB revenue isn’t an anomaly—it reflects a global shift already underway.
Why HNB Is Scaling Fast
HNB technology heats processed tobacco at lower temperatures (250–350°C), producing nicotine-containing aerosol without combustion. This significantly reduces harmful byproducts compared to traditional cigarettes.
For consumers, it offers:
- A closer-to-cigarette experience
- Lower perceived health risk
- Familiar tobacco flavor
For tobacco companies, it offers a viable path toward “smoke-free” transformation.
Market Momentum
- 2025 global HNB stick volume: ~204.1 billion units
- Projected 2030 volume: ~351.7 billion units
- CAGR (2025–2030): ~11.5%
Market size projections are equally strong:
- 2025: ~$42.76 billion
- 2030: ~$74.21 billion
- CAGR: ~10%
More importantly, HNB has outperformed both vaping (~6.2% CAGR) and traditional cigarettes (-1.5%) in recent years, making it the only high-certainty growth segment in the nicotine industry.
Technology Is Driving Adoption
The shift from blade-based heating to induction systems is a key upgrade.
For example, next-gen induction platforms:
- Eliminate cleaning requirements
- Improve heating consistency
- Reduce maintenance costs significantly
Smoore has invested in HNB technology for over a decade, and that investment is now paying off—both through its own solutions and partnerships with global tobacco players in markets like Japan, Poland, and Italy.
Regional Outlook
- Japan: penetration >40%
- South Korea: 20–22%
- EU: rapid growth (25%+)
- U.S.: potential breakout pending regulatory approvals
If U.S. regulatory pathways continue to open, HNB could shift from niche to mainstream much faster than expected.
3. Beyond Nicotine: Medical and Specialty Atomization Is the Next Frontier
One of the more overlooked parts of Smoore’s business is also one of the most important for the long term: special-purpose atomization products.
This includes:
- CBD atomization devices
- Medical nebulization systems
- Inhalation drug delivery technologies
According to market projections:
- Specialty atomization market (2030): ~$3.28 billion
- CAGR (2025–2030): ~12.5%
Medical Applications Are Expanding Fast
Atomization technology is increasingly used in treating respiratory conditions such as:
- Asthma
- COPD
- Cystic fibrosis
Market growth reflects this shift:
- Nebulizer market (2025): $2.66 billion
- Projected 2032: $4.65 billion
- CAGR: ~8.3%
At the same time, inhalation therapy solutions are becoming more advanced, with:
- Smart nebulizers
- App-connected monitoring
- Personalized dosing systems
Smoore has already made meaningful progress here. Its subsidiary manufacturing facilities have passed FDA inspections and comply with cGMP standards—an essential step for entering regulated medical markets.
Smoore’s Strategy: Built for This Moment
This level of performance doesn’t come from short-term execution. It’s the result of long-term positioning.
1. Deep Technology Moat
- 11,309 cumulative patent applications (as of end-2025)
- 6,066 invention patents
- RMB 1.523 billion in R&D spending
Smoore is not just a manufacturer—it’s a technology platform company.
2. Global Market Coverage
With operations spanning the U.S., Europe, and Asia-Pacific, Smoore can adapt to regional regulatory shifts while capturing growth opportunities across markets.
3. Diversified Product Portfolio
The company is no longer dependent on a single category. Its portfolio includes:
- Vaping hardware
- HNB technology
- Medical atomization
- Beauty-related atomization products
This diversification reduces risk and stabilizes growth.
4. Manufacturing Advantage
Smoore’s ability to scale production while maintaining quality and compliance is a major competitive edge—especially as regulatory standards tighten worldwide.
What Comes Next: Three Industry Directions to Watch
Looking ahead, the industry is moving toward three clear endpoints:
Compliance Will Define Survival
Regulation is no longer a barrier—it’s the baseline. Companies that cannot meet global compliance standards will be pushed out.
Smart Devices Will Become Standard
From temperature control to app integration and health tracking, “smart atomization” is no longer optional.
Health-Focused Applications Will Expand
The boundary between consumer products and healthcare is starting to blur—and atomization technology sits right at that intersection.
Final Take
Smoore’s Q1 2026 results are more than just strong financials—they offer a snapshot of where the industry is heading.
- Vaping is stabilizing and consolidating
- HNB is scaling rapidly
- Medical atomization is opening new doors
If you’re operating in this space, the takeaway is straightforward:
The winners will be the ones who invest in technology, align with regulation, and move early into emerging segments.
Everything else is noise.