South America E-Cigarettes Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

South America E-Cigarettes Market Trends and Insights

Digital Discovery and Social-Commerce Reach Among Adult Consumers

Digital product discovery reaches adult consumers before they make formal purchase decisions in the South America e-cigarette market. Social media platforms, online marketplaces, and delivery applications have normalized product searches and repeat purchases in Colombia, Peru, and Argentina. Colombia's Superintendence of Industry and Commerce is expected to issue Resolution No. 30838 in May 2025 to regulate consumer access to information on vaping products. While the resolution addresses information access, authorities face greater challenges in monitoring digital promotion and peer-to-peer visibility at scale. Therefore, compliant local-language content and verified online purchasing systems can serve as valuable commercial capabilities. Online sellers that demonstrate effective age-verification processes and maintain product documentation will be better positioned as enforcement becomes more stringent.

Regulatory Normalization in Colombia, Chile, Peru, and Paraguay

Regulatory changes are shifting informal sales into licensed and taxable channels across several South American countries. Colombia’s Law 2354 of 2024 extended tobacco control regulations to e-cigarettes, establishing requirements that support a formal retail environment^{[2]Source: Superintendencia de Industria y Comercio (SIC), " Ley 2354 de 2024 “Por medio de la cual se modifica la Ley 1335 de 2009", secretariasenado.gov.co}. Chile’s Decree No. 41 took effect in May 2025 and introduced health-warning requirements for electronic nicotine delivery systems and vaping liquids. Peru implemented advertising restrictions and age-verification requirements under Law No. 32159; however, the supplied material did not include complete implementation details regarding flavors. Paraguay’s Law No. 7508 of 2025 requires product registration, limits imports to closed-device formats, and caps nicotine concentrations at 20 mg/mL^{[3]Source: Biblioteca y Archivo Central del Congreso Nacional, "Ley Nº 7508/2025 – “Que establece medidas sanitarias de protección a la salud de las personas en relación a los dispositivos… de los sistemas electrónicos de administración de nicotina (SEAN) y sistemas similares sin nicotina (SSSN)", bacn.gov.py}. These clearer regulations enable compliant suppliers to plan investments in product registration, retail access, and legal distribution across the South American e-cigarette market.

Product Innovation in Closed-Pod and High-Capacity Disposable Devices

Product design can reduce practical barriers for adult consumers trying e-cigarettes for the first time. Pre-filled pods, magnetic battery systems, visible liquid chambers, and battery indicators minimize maintenance requirements and technical adjustments. These features support closed systems, which adults widely use to gain a simpler initial experience. ELFBAR is expected to introduce its King Series in June 2025, featuring adjustable controls for coolness, sweetness, sourness, and nicotine strength. This product approach reflects demand for controlled flavor and nicotine delivery rather than a single, uniform format. Importers must also account for the International Air Transport Association requirement, effective January 2026, that lithium batteries contained in equipment transported by air must not exceed a 30% state of charge.

Adult-Smoker Switching and Refillable-System Adoption

Adult tobacco users represent a significant potential customer base for the South America e-cigarette market. Chile recorded the highest adult tobacco-use prevalence in the Americas, at 28.7%, compared with the regional average of 16.6% among adults aged 15 years and above. Refillable systems may appeal to adults who prioritize lower per-use costs and a broader selection of e-liquids. The supplied research indicates that open systems can reduce per-use costs by 40%–60% compared with proprietary pod systems. It also cites a peer-reviewed study dated 2026 on Chilean usage patterns, which found that initiation often occurred in social settings and that women accounted for 77.8% of qualitative interview participants. These findings indicate that product positioning and retail strategies may need to account for social consumption patterns and varied consumer preferences. Product form factor, retail accessibility, and consistent nicotine delivery may influence the development of demand among adult users.

Country-Level Bans and Uneven Regulatory Recognition

Brazil continues to prohibit the manufacturing, importation, and sale of e-cigarettes under ANVISA Resolution RDC No. 855/2024. This ban excludes the continent's largest consumer base from legal sales, although informal demand persists. According to the supplied material, 4 million people in Brazil used e-cigarettes through informal channels during the ban. Venezuela also restricts the development of a formal local market by prohibiting manufacturing and imports. Informal suppliers can undercut the prices of licensed products by avoiding registration, taxation, and labeling costs. This price advantage can sustain informal distribution channels and limit the development of regulated e-cigarette markets. Regional enforcement cooperation remains important; however, the PAHO tobacco-control strategy does not establish a binding enforcement mechanism.

Illicit and Counterfeit Product Competition

Illicit products continue to restrain licensed sales in the South American e-cigarette market. In January 2025, the World Customs Organization's Operation FRONPIAS involved 14 customs administrations and intercepted nearly 14 million items, with tobacco and e-cigarette products accounting for 89% of the total seized quantity. Brazil's enforcement agencies also reported significant e-cigarette seizures across ports, airports, and road networks in 2024. While seizure data highlight the substantial volume of products in transit, they do not capture products that reach informal retail channels. Counterfeit products may lack reliable ingredient disclosures, child-resistant packaging, and consistent nicotine delivery, posing risks to consumers and legitimate suppliers. The continued circulation of illicit products also undermines regulatory oversight and limits revenue opportunities for compliant manufacturers and authorized retailers.

*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.

Segment Analysis

By Product Type: Hardware Anchors Value While E-Liquids Build Recurring Demand

E-cigarette devices accounted for 82.72% of the South American e-cigarette market share in 2025. This substantial share reflects the requirement for each new user to purchase hardware before generating recurring spending on consumables. Disposable devices are gaining traction in Colombia and Peru because they require minimal setup at the point of purchase. Rechargeable devices support longer usage periods and can drive repeat purchases over time. Retailers benefit from offering hardware for hands-on evaluation through specialty stores, convenience outlets, and other formal retail channels. The device category remains closely linked to the expansion of the installed user base. As adoption increases, demand for entry-level and advanced device formats is likely to broaden across the region.

E-liquids are forecast to register the fastest product-type CAGR of 7.45% during 2026–2031. This faster growth highlights the increasing importance of repeat consumable purchases as users continue vaping after their initial device purchase. The expansion of formal retail channels in Colombia can facilitate replenishment by increasing the number of purchase locations. This expansion can shift e-liquid purchases from planned shopping trips to more frequent, convenience-driven purchases. In 2025, PAHO warned about flavored tobacco and nicotine products and reported an e-cigarette prevalence of 5.4% among adolescents in the Americas. Brands must therefore prepare for stricter flavor regulations while maintaining compliant product documentation and locally appropriate product portfolios. Regulatory developments may also influence product availability and the range of e-liquid formulations offered through formal retail channels.

By Category: Closed Systems Lead While Open Systems Gain Through Refill Economics

Closed vaping systems accounted for 74.37% of the South America e-cigarette market in 2025. Pre-filled pods eliminate the need to handle e-liquids or adjust device settings, making these systems more accessible to adult consumers seeking a straightforward initial product experience. Closed systems also enable brands to maintain product traceability through controlled cartridge and device supply. Their distribution model supports consistent retailer margins and clearer compliance procedures. These characteristics underpin their broad adoption across regulated and newly formalizing national markets. This format is particularly suited to markets where standardized products and controlled distribution channels support regulatory oversight.

Open vaping systems are projected to record the fastest category CAGR of 7.98% during 2026-2031. Refillable tanks appeal to cost-conscious and technically engaged adult consumers seeking a broader range of e-liquid options. The supplied material indicates that open systems can reduce per-use costs by 40% to 60% compared with proprietary pods. The supplied draft also indicates that a substantial share of consumers in Colombia prefer open systems. However, Paraguay's Law No. 7508/2025 restricts legal imports and manufacturing to closed-device formats. These varying country-level requirements favor brands that can meet regulatory compliance obligations while addressing distinct consumer preferences. As regulations evolve across the region, manufacturers will need to adapt their product portfolios to country-specific legal frameworks.

By End User: Men Hold the Largest Base While Women Expand Faster

Men accounted for 67.49% of the South American e-cigarette market share in 2025. This distribution reflects the category’s early association with device-focused user communities and social adoption patterns. Manufacturers have traditionally targeted this consumer base through product performance, battery capacity, and broad retail availability. Expanding formal distribution channels can also increase access for consumers who do not visit specialty vape shops. As the largest end-user group, men remain significant for hardware sales and established retail demand, while also providing the installed base that supports subsequent consumable purchases.

Women are projected to register the fastest CAGR among end-user groups, at 8.64%, during 2026–2031. Slimmer devices, discreet form factors, and a wider range of flavors may increase product relevance across different adult purchasing situations. A 2025 study published in Frontiers in Public Health examined gender-related considerations in e-cigarette use and tobacco-control policy. A peer-reviewed Chilean study published in 2026 found no population-level difference in past-year use by sex and reported that women represented 77.8% of qualitative interview participants. PMI reported that VEEV shipped more than 1 billion equivalent units globally in the first quarter of 2026, highlighting the commercial scale of closed-pod formats. The available evidence links growth in the women’s segment to device form factors, flavor variety, and retail settings rather than cosmetic product modifications.

By Distribution Channel: Offline Retail Retains Scale While Online Retail Grows Faster

Offline retail accounted for 70.51% of regional e-cigarette sales in 2025. Physical stores enable consumers to examine devices before making an initial purchase. Specialty vape stores, tobacconists, convenience outlets, and modern retail channels provide immediate access to products. In Colombia, formalization has supported expansion into chain convenience stores and shopping center kiosks, according to the supplied material. These channels reduce uncertainty for adults seeking direct product information before purchase. Consequently, offline retail remains the primary channel for device trials and initial purchases.

Online retail is projected to register the fastest CAGR among distribution channels, at 9.22% during 2026-2031. Digital channels benefit from consumer purchasing behaviors already established through social media, online marketplaces, and delivery platforms. In 2025, Colombia's SIC directed Rappi, Almacenes Éxito, Dislicores, and 8 other platforms to implement age-verification and delivery identification checks. Although these requirements increase costs, they can help compliant operators differentiate themselves from informal sellers. Verified age-gating and documented delivery procedures can serve as practical barriers to entry for less formal participants. The South America e-cigarette market is likely to favor online operators that combine regulatory compliance, multi-brand product discovery, and reliable last-mile delivery.

Geography Analysis

Colombia is projected to account for 43.16% of the South America e-cigarette market size in 2025, making it the region’s largest national market. Law 2354/2024 provides suppliers with a recognized legal framework for commercialization and formal retail planning. The country offers consumer access through convenience stores, shopping centers, e-commerce platforms, and delivery applications. This distribution network is more developed than those in many neighboring markets. Newer brands, including Vaporesso, Dragbar, and GluCloud, have expanded the supplier base. Although Colombia’s tax and licensing obligations may increase retail prices, they also indicate continued state oversight of a formal product category.

Peru is projected to record the fastest regional CAGR of 7.92% during 2026–2031. The supplied material attributes this growth to an expanding importer base and demand that is developing faster than regulatory implementation. Peru’s framework establishes advertising, age-verification, and labeling requirements for nicotine and substitute products. Enforcement activities may benefit suppliers that already comply with Spanish-language labeling, manufacturer-information, and product-record requirements. The market’s growth profile also reflects continued cross-border and digital purchasing behavior. Formal compliance capabilities will become increasingly important as implementing regulations become more specific.

The rest of South America will present varied regulatory and competitive conditions in 2026. Chile has an adult tobacco use prevalence of 28.7%, the highest in the Americas, creating a sizable opportunity for adult smokers to switch to e-cigarettes. British American Tobacco is expected to launch Vuse in Chile in March 2025 after the country’s electronic nicotine delivery system framework takes effect. Argentina’s Resolution 549/2026 is expected to formalize a category that has long operated through informal trade, while the supplied material indicates that Decree 305/2026 will impose higher import duties. Paraguay will operate under Law No. 7508/2025, which links product registration, nicotine limits, tax obligations, and closed-device formats. Brazil remains outside the legal South America e-cigarette market because of ANVISA’s comprehensive prohibition. These differences make country-specific compliance and supply planning essential for regional market participation.