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

The E-cigarette Market is segmented by Product Type (Completely Disposable Model, Rechargeable but Disposable Cartomizer, and Personalized Vaporizer); by Battery Mode (Automatic E-cigarette, and Manual E-cigarette); by Distribution Channel (Offline Retail and Online Retail); and Geography (North America, Europe, and Rest of the World). The report offers market size and forecasts in terms of value (USD million) for the above segments.

Market Snapshot

E-Cigarette Market Size
Study Period: 2016-2027
Base Year: 2021
Fastest Growing Market: North America
Largest Market: North America
CAGR: 13.39 %
E-Cigarette Market key players

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Market Overview

The e-cigarette market valued USD 23.6 billion in 2021, and is projected to record a CAGR of 13.39% during the forecast period (2022-2027).

Regular smoking is linked to a number of severe diseases. The World Health Organization stated that smokers were more likely to get affected by COVID-19 than non-smokers. Additionally, in the United States, the COVID-19 pandemic had far-reaching consequences on the consumption of e-cigarettes. A study conducted by the Gaiha University showed that nearly 56.4% of the young American population reported change in their e-cigarette use since the beginning of the COVID-19 pandemic. Furthermore, one-third of youth quit vaping, and another one-third reduced their use of e-cigarettes, with the remaining youth either increasing their use or switching to other nicotine or cannabis products. Thus, the study depicts that higher nicotine dependence, e-cigarette use frequency, poor online age verification, and several other factors were associated with sustained use of e-cigarette products.

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 made online vendors improve purchase processes in terms of security and reliability, which, in turn, propelled the demand for these products. ​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.

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 to produce vapor. The global e-cigarette market (henceforth, referred to as the market studied) is segmented by product type, battery mode, distribution channel, and geography. By product type, 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. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

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
Geography
North America
United States
Canada
Rest of North America
Europe
United Kingdom
Germany
France
Spain
Italy
Russia
Rest of Europe
Rest of the World
Asia-Pacific
South America
Middle East & Africa

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Key Market Trends

Cost-effective Solution than Traditional Tobacco

A major portion of the world population is considering e-cigarettes or vapes as a healthier option as compared to regular cigarettes. Alongside, the added cost-effective nature of e-cigarettes in comparison to traditional ones drives the growth of the market. For instance, the cost of a single-use, disposable e-cigarette is around USD 1 to USD 15 per product or more. The rechargeable starter kits having multiple pods cost around USD 25 to USD 150 or more, whereas the liquid refill kits cost around USD 50 to USD 75 monthly. The median price of a Marlboro Reds pack is around USD 13 to USD 15, along with having 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 economical for use. Moreover, the reusability of e-cigarettes by refilling adds more value to the cost-effective aspect of the product, providing a cheaper solution to the individuals.

 E-Cigarette Market Trends

North America Holds the Largest Market Share

North America holds the largest share in the e-cigarettes market. The involvement of youth in using these products has led to a rise in demand. For instance, youth in the United States are the major consumers of e-cigarettes. In 2020, the Centre for Disease Control and Prevention (CDC) reported that 3.6 million US middle and high school students used e-cigarettes in the study period of 30 days, including 4.7% of middle school students and 19.6% of high school students. E-cigarettes hold 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 in the regional market. The association of vaping/e-cigarettes with fashion appeal drives the demand for e-cigarettes in the North American market.

E-Cigarette Market Analysis

Competitive Landscape

The global e-cigarette market facilitates its operation in a highly competitive market. This is due to the presence of several local, domestic, and international players in this segment. Due to several players in the e-cigarette market, the rivalry among the competitors is also intense. 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 in the market studied include British American Tobacco PLC, JUUL Labs Inc., Imperial Brands PLC, Philip Morris International Inc., and Japan Tobacco Inc., among others.

Recent Developments

  • In August 2021, Philip Morris International Inc. announced the launch of IQOS ILUMA in Japan. The new IQOS ILUMA becomes the brand’s first tobacco-heating system to introduce induction-heating technology, which utilizes no blade and requires no cleaning.
  • In July 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.
  • In December 2020, JWEI Group launched μKERA Ultra, a proper revolutionary vaping solution. μKERA Ultra is a semiconductor wafer process-based micro-vaporizer technology that produces vapor out of e-liquids or cannabis extracts uniquely.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces 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

  5. 5. MARKET SEGMENTATION

    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. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Rest of North America

      2. 5.4.2 Europe

        1. 5.4.2.1 United Kingdom

        2. 5.4.2.2 Germany

        3. 5.4.2.3 France

        4. 5.4.2.4 Spain

        5. 5.4.2.5 Italy

        6. 5.4.2.6 Russia

        7. 5.4.2.7 Rest of Europe

      3. 5.4.3 Rest of the World

        1. 5.4.3.1 Asia-Pacific

        2. 5.4.3.2 South America

        3. 5.4.3.3 Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    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 Limited

      8. 6.3.8 Juul Labs Inc.

      9. 6.3.9 Innokin Technology

      10. 6.3.10 NJOY Inc.

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The E-cigarette Market market is studied from 2016 - 2027.

The E-cigarette Market is growing at a CAGR of 13.39% over the next 5 years.

North America is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

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.

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