E-cigarette Market - Growth, Trends, COVID-19 Impact and Forecasts (2022 - 2027)

E-cigarette Market is Segmented by Product type (Completely Disposable Model, Rechargeable but Disposable Cartomizer, Personalized Vaporizer), Battery Mode (Automatic E-cigarette, Manual E-cigarette), Distribution Channel, and by Geography (North America, Europe, Asia-Pacific, South America and Middle East and Africa). The report offers market size and forecasts in value (USD million) for the above segments.

Market Snapshot

E-Cigarette Market Overview
Study Period: 2016 - 2026
Base Year: 2021
Fastest Growing Market: Africa
Largest Market: Europe
CAGR: 16.9 %
E-Cigarette Market Top Companies

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Market Overview

The global e-cigarette market was valued at USD 18,907.79 million in 2020 and is projected to grow at a CAGR of 16.90 % over the forecast period (2021-2026).

Regular smoking is linked to severe diseases. COVID-19 is a new disease impacting the tobacco and e-cigarette market, as many countries are starting to come to terms with the fact that smokers are 14 times more likely to die of COVID-19. The World Health Organization also issued guidelines indicating the health risks linked to the consumption of e-cigarettes and vapes, which were perceived as less harmful to health as compared to traditional tobacco. Furthermore, various studies depict that people using vapes are five to seven times more likely to get infected by novel COVID-19 than people who do not use vape. This is largely because smoking impairs lung function, making it difficult for the body to fight off COVID-19 and other diseases. Tobacco is also a major risk factor for non-communicable diseases, like cardiovascular disease, cancer, respiratory disease, and diabetes, which put people in critical conditions, with higher risks for developing severe illness when affected by COVID-19.

Over the medium term,there has been rising awareness regarding the health hazards associated with smoking. This resulted in high demand for alternatives to traditional cigarettes, such as e-cigarettes. ​Furthermore, rechargeable e-cigarettes have been well received by consumers, aided by their higher levels of flexibility, as compared to their single-use counterparts. As disposable e-cigarettes offer cost-effective solutions to the new range of consumers who are looking to test e-cigarettes, the rechargeable e-cigarettes heavily outweigh the cost difference, in the long-term. ​The growth opportunity for the sales of e-cigarettes through online channels forced online vendors to improve purchase processes, in terms of security and reliability, which, in turn, propelled the demand for these products. Moreover, key players are adopting online retail strategies to reduce costs and increase their margins. ​As a part of the strategic expansion, prominent players, such as Philip Morris Products SA, British American Tobacco PLC, and Japan Tobacco Inc., are launching new products in the e-cigarette market to gain dominance. ​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.Tobacco manufacturers have been focusing on technological developments and innovation in order to attain an edge over their competitors. The above-mentioned factors persuaded vendors to heavily invest in technology.

Scope of the Report

E-cigarettes usually include electronic circuitry and a power source supplying energy to the heating mechanism; they produce vapor by heating rather than the burning associated with the consumption of regular tobacco-based cigarettes, non-tobacco nicotine-containing liquid is most commonly used consumable to produce vapor. By product, the market studied is segmented into a completely disposable model, rechargeable but disposable cartomizer, and personalized vaporizer. By battery mode, the market studied is segmented into automatic e-cigarettes and manual e-cigarettes. By distribution channel the market is segmented into offline and online retail segments. By geography, the market studied is segmented into North America, Europe, and Rest of the World. The report offers market size and forecasts in value (USD million) for the above segments.

By Product Type
Completely Disposable Model
Rechargeable but Disposable Cartomizer
Personalized Vaporizer
By Battery Mode
Automatic E-cigarette
Manual E-cigarette
By Distribution Channel
Offline Retail
Online Retail
North America
United States
Rest of North America
United Kingdom
Rest of Europe
Rest of the World
South America
Middle East & Africa

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Key Market Trends

Rise in Demand For Flavored E-Cigarattes

The rise in e-cigarette use is likely because of the recent popularity of e-cigarettes offerings in a wide variety of flavors and in different shapes like a USB flash drive, such as JUUL. Evolving consumer taste is driving diversity in e-liquid flavors across the world, with tobacco, botanical, and fruit flavors being the most popular. These products can be used discreetly, have high nicotine content, and come in flavors that are highly appealing to the youth. Compared to adults, a larger proportion of adolescents prefer fruit, alcohol, and other-flavoured e-liquids. 

Flavors range from simplistic menthol and cinnamon, and sweet varieties, such as chocolate and vanilla, to complex flavors that are formed by mixing different varieties in fixed compositions. Customization in flavors is also a recently evolving trend, in many markets. Vaping company, Kwit Stick, introduced a new micro USB-recharging vaporizing pen, that comes with a starter kit containing the pen device, charging cable with all four flavor pods, and a syringe bottle to aid with refills. High street selling flavors, such as tiramisu and champagne, are also helping the market to grow significantly

E-Cigarette Market Growth Rate

North America holds Largest Market Share

The United States Food and Drug Administration (FDA) classifies e-cigarettes and other electronic nicotine delivery systems (ENDS) as tobacco products, except in cases when they are marketed as drugs, devices, or combination products. Additionally, in 2018, FDA had issued warnings to restrict e-liquid brands whose packaging resembles food or beverage products, especially the ones resembling candy or juice boxes that are appealing to children. Youth in the United States, are the major consumers of e-cigarettes. The Centre for disease control and prevention (CDC) reported In 2020, 3.6 million U.S. middle and high school students used e-cigarettes in the past 30 days, including 4.7% of middle school students and 19.6% of high school students. This represents a decrease from 2019. E-Cigarettes held the major share of tobacco products, and 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. Additionally, professional vapers, who perform at several events and involve in chain vaping for practice, consider nicotine-free vaping as the best alternative to traditional vaping. However, studies conducted by the American Physiological Society (APS) and FDA proved that vaping could be dangerous, even when it is nicotine-free. Flavoring agents used in caramel, vanilla, and cinnamon are identified to be harmful to a type of white blood cell called macrophage. Such derivations are leading to regulatory measures, which is expected to be a major restraint to all the e-liquids alike. Thus, nicotine-free flavors are expected to emerge as a potential factor for the growth of e-cigarettes market in the region.

E-Cigarette Market Size By Region

Competitive Landscape

The e-cigarette market is moving toward a competitive market scenario, as the intensity of competitive rivalry has been on the rise over the past few years, owing to the multiple numbers of large and established organizations that have entered the market. Product innovation and development are the most adopted strategies by the players operating in the market studied. With the increasing number of health-conscious consumers worldwide, major players are adopting various strategies to draw consumers’ attention by introducing various products with new technological advancements. Increasing firm concentration ratio and advertising expenses by companies are also heightening the competition. Key players operating in the market study are Philip Morris International, Imperial Brands PLC, Shenzhen Joye Technology Co Ltd, etc.

Recent Developments

  • In 2020, Aspire launched the Aspire Nautilus GT Kit, the latest box mod kit combining the Nautilus GT tank system and the new 75W Glint Mod. This new Nautilus GT Kit is powered by an ingle 18650 battery mod and this mod has an OLED 0.91 screen to easily set the mod wattage.
  • In 2019, Philip Morris International Inc. introduced IQOS 3 DUO, with an aim to expand its smoke-free portfolio. The latest addition, IQOS 3 DUO, is designed with new features to help adult smokers switch from cigarettes more seamlessly.
  • In 2018, Imperial Tobacco extended its blu e-cigarette range with the addition of a ‘pod-mod’ vaping system called ‘myblu’, as well as a range of intense liquid pods. The new product range is available in various flavors, namely, green apple, mango apricot, cherry crush, eucalyptus lemon, ginseng ginger, and café latte.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porters Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Product Type

      1. 5.1.1 Completely Disposable Model

      2. 5.1.2 Rechargeable but Disposable Cartomizer

      3. 5.1.3 Personalized Vaporizer

    2. 5.2 By Battery Mode

      1. 5.2.1 Automatic E-cigarette

      2. 5.2.2 Manual E-cigarette

    3. 5.3 By Distribution Channel

      1. 5.3.1 Offline Retail

      2. 5.3.2 Online Retail

    4. 5.4 Geography

      1. 5.4.1 North America

        1. United States

        2. Canada

        3. Rest of North America

      2. 5.4.2 Europe

        1. United Kingdom

        2. Germany

        3. France

        4. Spain

        5. Italy

        6. Russia

        7. Rest of Europe

      3. 5.4.3 Rest of the World

        1. Asia-Pacific

        2. South America

        3. Middle East & Africa


    1. 6.1 Strategies Adopted by Key Players

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 British American Tobacco PLC

      2. 6.3.2 Philip Morris International Inc.

      3. 6.3.3 Imperial Brands PLC

      4. 6.3.4 JWEI Group

      5. 6.3.5 J Well France

      6. 6.3.6 Japan Tobacco Inc.

      7. 6.3.7 Ritchy Group Ltd

      8. 6.3.8 Juul Labs Inc.

      9. 6.3.9 Innokin Technology

      10. 6.3.10 NJOY Inc.

    4. *List Not Exhaustive


**Subject to Availability

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Frequently Asked Questions

The E-cigarette Market market is studied from 2016 - 2026.

The E-cigarette Market is growing at a CAGR of 16.9% over the next 5 years.

Africa is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2020.

Philip Morris Products S.A, Imperial Brands PLC, Altria Group, Shenzhen Joye Technology Co Ltd, Japan Tobacco Inc are the major companies operating in E-cigarette Market.

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