E-cigarette Industry Overview
|Study Period:||2018 - 2028|
|Fastest Growing Market:||North America|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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E-cigarette Market Analysis
The e-cigarette market is projected to record a CAGR of 13.39% over the next five years.
As more people become aware of the harmful effects of traditional tobacco-based cigarettes, e-cigarettes are gaining popularity, especially among young adults and adolescents. E-cigarettes have been recognized as an alternative to traditional cigarettes due to their several benefits, such as zero smoke, no pollution, reduced health-related problems, and the ability to smoke in public areas. Higher nicotine dependence, frequency of using e-cigarettes, poor online age verification, and several other factors are also boosting the demand for e-cigarette products.
Over the medium term, there was rising awareness regarding the health hazards associated with smoking. Rechargeable e-cigarettes have also been well received by consumers, aided by their higher levels of flexibility compared to their single-use counterparts. As disposable e-cigarettes offer cost-effective solutions to the new range of consumers looking to test e-cigarettes, rechargeable e-cigarettes heavily outweigh the cost difference in the long term.
The growth sales opportunity of e-cigarettes through online channels made vendors improve their online purchase processes in terms of security and reliability, thus boosting the demand for these products online. With the growing popularity of vaping devices, flavor and fragrance vendors are introducing a wide variety of e-liquids to attract consumers. Different flavors, such as menthol, mint, chocolate, cola, bubble gum, and fusions of other fruits and flavoring substances are luring a large number of consumers to adopt these e-cigarette devices.
E-cigarette Industry Segments
E-cigarettes usually include electronic circuitry and a power source supplying energy to the heating mechanism. They produce vapor by heating, which sets them apart from regular tobacco-based cigarettes that involve burning. Non-tobacco nicotine-containing liquid is most commonly used to produce vapor. The e-cigarette market is segmented by product type, battery mode, distribution channel, and geography. By product type, the market is segmented into a completely disposable model, rechargeable but disposable cartomizer, and personalized vaporizer. By battery mode, the market is segmented into automatic e-cigarettes and manual e-cigarettes. By distribution channel, the market is segmented into offline retail and online retail segments. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. For each segment, the market sizing and forecast have been done on the basis of value (in USD million).
|Completely Disposable Model|
|Rechargeable but Disposable Cartomizer|
E-cigarette Market Trends
This section covers the major market trends shaping the E-cigarette Market according to our research experts:
E-cigarettes are a Cost-effective Solution than Traditional Tobacco Cigarettes
The majority of the world population is considering e-cigarettes or vapes as a healthier option compared to regular cigarettes. The added cost-effective nature of e-cigarettes over traditional ones is also driving the growth of the market. For instance, the cost of a single-use disposable e-cigarette is around USD 1-USD 15 per product. The rechargeable starter kits have multiple pods that cost around USD 25-USD 150 or more, whereas the liquid refill kits cost around USD 50-USD 75 monthly. The median price of a Marlboro Reds pack is around USD 13-USD 15, with nicotine content as high as 1.9 milligrams in each cigarette. The affordable cost of e-cigarettes, paired with the price-based marketing strategy of the vendors, encourages consumers to buy e-cigarettes. The affordability of the disposable models of e-cigarettes attracts consumers, making them an economical option. The reusability of e-cigarettes by refilling adds more value to the cost-effective aspect of the product, providing a cheaper solution to individuals.
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North America Holds the Largest Market Share
North America holds the largest share of the e-cigarette market. The growing number of youths using these products has led to a rise in demand. For instance, the young population in the United States is the major consumer group of e-cigarettes. In 2021, the Centers for Disease Control and Prevention (CDC) reported that 2.06 million middle and high school students in the United States used e-cigarettes during a period of 30 days, including 2.8% of middle school students and 11.3% of high school students. E-cigarettes hold a major share of the tobacco products segment. Currently, more than 3,000 e-cigarette flavors are available in the US market, and a number of flavors are being introduced into the market every year. Nicotine-free e-liquids generate smoother vapes than other variants. Professional vapers who perform at several events and are involved in chain vaping for practice consider nicotine-free vaping as the best alternative to traditional vaping. The perception of vaping/e-cigarettes having a fashion appeal is also driving the demand for e-cigarettes in North America.
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E-cigarette Market Competitor Analysis
The e-cigarette market is highly competitive due to the presence of several local, domestic, and international players. Therefore, the rivalry among the competitors is intense. Product innovation and development are the most adopted strategies by players operating in the market.
With the increasing number of health-conscious consumers worldwide, major players are adopting several strategies to draw consumers’ attention by introducing products with new technological advancements. Increasing firm concentration ratio and advertising expenses by companies are also strengthening the competition. Key players in the market include British American Tobacco PLC, JUUL Labs Inc., Imperial Brands PLC, Philip Morris International Inc., and Japan Tobacco Inc.
E-cigarette Market Top Players
Imperial Brands PLC
JUUL Labs Inc.
British American Tobacco Inc.
Philip Morris International Inc.
Japan Tobacco Inc.
*Disclaimer: Major Players sorted in no particular order
E-cigarette Market Recent Developments
- JUN 2022: Supreme agreed to acquire the vaping brand Liberty Flights Holdings in a deal of the value of GBP 14.75 million. As part of the acquisition, GBP 7.75 million will be paid in initial consideration, GBP 2 million in deferred consideration, and up to GBP 5 million in performance-related earn-out payments.
- AUG 2021: Philip Morris International Inc. announced the launch of IQOS ILUMA in Japan. The new IQOS ILUMA became the brand’s first tobacco-heating system to introduce induction-heating technology, which utilizes no blade and requires no cleaning.
- JUL 2021: Japan Tobacco Inc. launched Ploom X, its next-generation heated tobacco device. Ploom X is made available across Japan, including convenience stores and select tobacco retail stores.
E-cigarette Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Completely Disposable Model
5.1.2 Rechargeable but Disposable Cartomizer
5.1.3 Personalized Vaporizer
5.2 Battery Mode
5.2.1 Automatic E-cigarette
5.2.2 Manual E-cigarette
5.3 Distribution Channel
5.3.1 Offline Retail
5.3.2 Online Retail
5.4.1 North America
220.127.116.11 United States
18.104.22.168 Rest of North America
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
188.8.131.52 Rest of Asia Pacific
5.4.4 South America
184.108.40.206 Rest of South America
5.4.5 Middle-East and Africa
220.127.116.11 United Arab Emirates
18.104.22.168 South Africa
22.214.171.124 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Strategies Adopted by Key Players
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 British American Tobacco PLC
6.3.2 Philip Morris International Inc.
6.3.3 Imperial Brands PLC
6.3.4 JWEI Group
6.3.5 J Well France
6.3.6 Japan Tobacco Inc.
6.3.7 Ritchy Group Limited
6.3.8 Juul Labs Inc.
6.3.9 Innokin Technology
6.3.10 NJOY Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
E-cigarette Market Research FAQs
What is the study period of this market?
The E-cigarette Market is studied from 2018 - 2028.
What is the growth rate of E-cigarette Market?
The E-cigarette Market is growing at a CAGR of 13.39% over the next 5 years.
Which region has highest growth rate in E-cigarette Market?
North America is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in E-cigarette Market?
North America holds highest share in 2021.
Who are the key players in E-cigarette Market?
Imperial Brands PLC, JUUL Labs Inc. , British American Tobacco Inc. , Philip Morris International Inc., Japan Tobacco Inc. are the major companies operating in E-cigarette Market.
E-cigarette Industry Reports
In-depth industry statistics and market share insights of the E-cigarette sector for 2020, 2021, and 2022. The E-cigarette research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the E-cigarette report PDF.