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E-cigarettes Market - Forecasts from 2022 to 2027

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  • 131 Pages
  • August 2022
  • Region: Global
  • Knowledge Sourcing Intelligence LLP
  • ID: 5649030
The e-cigarette market was evaluated at US$14.068 billion for the year 2020 and is projected to grow at a CAGR of 14.88% to reach the market size of US$38.138 billion by the year 2027. E-cigarettes are battery-operated electronic cigarettes that are less hazardous than regular cigarettes. Electronic cigarettes, commonly known as e-vaping devices, e-cigs, vape pipes, and electronic cigarettes, are made up of three primary parts: a heating coil, a battery, and an e-liquid cartridge. These elements assist in delivering liquefied nicotine or flavoured fluids to users. Due to growing knowledge of the adverse effects of traditional tobacco-based cigarettes, e-cigarettes are gaining popularity, particularly among young adults and adolescents.

The e-cigarette market has developed rapidly in recent years, as devices have improved in terms of battery life and flavour variety. A wide selection of flavours, such as menthol, tobacco, and fruits, are also available on the market, appealing to a large number of customers. These flavours emit aromas when it is used in an e-cigarette. Flavoured products continue to drive child usage; according to the 2021 National Young Tobacco Survey (NYTS), 85 percent of young e-cigarette users report consuming flavoured products, especially fruit, candy/desserts/other sweets, mint, and menthol being the most popular flavours. Furthermore, the increasing cost-effectiveness of these devices has enhanced customer acceptance, which is expected to drive market growth during the forecast period. Furthermore, the US Food and Drug Administration announced in October 2021 that it had approved the selling of three new tobacco products, marking the first time the FDA had approved a set of electronic nicotine delivery system (ENDS) products through the Premarket Tobacco Product Application (PMTA) pathway. The market will be driven by such regulations in support of e-cigarettes.

The rising awareness that e-cigarettes are safer than traditional cigarettes, especially among the younger population, as a consequence of various studies undertaken by medical centres and associations, is likely to propel market expansion even further. For instance, In the first half of 2021, approximately 2 million middle & high school students, including 11.3 percent of high school students, reported using e-cigarettes, according to the National Youth Tobacco Survey (NYTS). Additionally, the manufacturer's customization possibilities, such as temperature regulation and nicotine dosing, are expected to drive up product demand. Furthermore, the market expansion of electronic cigarettes is predicted to be accelerated by companies' constant improvement in new product development.

Companies have focused on increasing awareness of electronic cigarettes, particularly among adult smokers, in recent years. In January 2019, JUUL Labs, Inc. launched a marketing campaign to educate adult smokers about the dangers of conventional combustible cigarettes and to persuade them to switch to e-cigarettes and vape devices. Leading brands' market expansion is projected to be aided by such marketing initiatives over the forecast period.

Furthermore, with the rising number of health-conscious consumers around the world, prominent players are employing a variety of techniques to attract customers' attention by offering new technologically advanced products. For example, Japan Tobacco Inc. announced the debut of new tobacco capsule flavours in March 2019. Mixed pineapple, peach, and menthol flavours are among the flavours available.

However, local government controls on the sale of vaping devices and e-liquids in nations such as Latin America and India have stifled market growth. Furthermore, strict trading rules have made importing e-cigs for personal use impossible for retail users.

The rechargeable category is expected to have the largest market share by product. Rechargeable e-cigarettes are likely to become more popular as they are less expensive and eliminate the need to repurchase consumables like cartridges. Customers who make their e-liquid do not need to buy pre-filled cartridges. Rechargeable e-cigarettes, which emit minimal smoke and can be charged using a USB port, are also gaining popularity among adolescents in several significant countries.

Tobacco is expected to have a significant market share among adult smokers based on flavour. Tobacco-flavoured e-liquid improves the taste of tobacco products while reducing their negative effects, making them more appealing and available to new users. Flavoured items, on the other hand, are driving youth usage. Fruit, candy/desserts/other sweets, mint, and menthol are the most popular flavours among youth e-cigarette users, with 85 percent of them using flavoured products. According to the NYTS report, 30% of high schoolers who reported consuming flavoured e-cigarettes used menthol-flavoured products.

By distribution channel, the offline segment is anticipated to have the largest proportion of the market. Previously, e-cigarettes were sold in stores like vape shops & gas stations. Customers could choose from a broad variety of devices & e-liquids at these locations. Additionally, shops that allow customers to test and try out these devices before making a purchase choice are likely to promote retail store growth throughout the forecast period. Furthermore, over the projected period, the internet segment is expected to grow at a high rate. People buy e-cigarettes and vapes online because of the advantages of internet marketplaces in terms of competitive cost, convenience, and access to a greater choice of items.

In the e-cigarette market, the Americas is expected to have a significant portion. Youth involvement in the consumption of these items has increased demand. In the United States, for example, youngsters are the primary users of e-cigarettes. According to the Centers for Disease Control and Prevention (CDC), 3.6 million US middle & high school students used e-cigarettes during a 30-day study period in 2020, with 4.7 percent of middle school students and 19.6 percent of high school students using them. E-cigarettes account for most tobacco products; there are currently over 3,000 e-cigarette varieties available in the US marketplace, with new tastes being added every year. In the North American market, the link of e-cigarettes with fashion appeal boosts e-cigarette demand further.

Recent Development

Japan Tobacco Inc. announced a collaboration with Sauber Engineering AG, a prototype & technology developer, in September 2020. The firms will continue to partner on engineering projects to boost the effectiveness of Japan Tobacco Inc. products as part of this cooperation.

Philip Morris International Inc. introduced IQOS ILUMA in Japan in 2021. This was the company's first tobacco-heating device to use induction-heating technology, which eliminated the need for blades and eliminated the need for cleaning.

Ploom X, Japan Tobacco Inc.'s next-generation heated tobacco device, was released in 2021. The product was distributed throughout Japan, including convenience stores & various tobacco retail outlets.

Aspire released the Aspire Nautilus GT Kit in May 2020, which combines the Nautilus GT tank system with the new 75W Glint Mod. The new Nautilus GT Kit is composed of a single 18650 battery mod with an OLED 0.91 screen that allows users to simply set the wattage of the mod.

COVID-19 Impact

The COVID-19 epidemic had a relatively negative impact on the market for e-cigarettes. Regular smoking has been related to a variety of serious illnesses. COVID-19 is more likely to impact smokers than non-smokers, according to the World Health Organization. Furthermore, the COVID-19 pandemic in the United States had far-reaching effects on e-cigarette use. According to a survey published by Gaiha University, roughly 56.4 percent of the young American population has changed their e-cigarette use since the COVID-19 pandemic began. Furthermore, one-third of young people stopped vaping. At the same time, another third cut back on their usage of e-cigarettes, with the remainder expanding their use or shifting to certain other nicotine or cannabis-related products.


By Product

  • Modular E-Cigarette
  • Rechargeable E-Cigarette
  • Next-Generation E-Cigarette
  • Disposable E-Cigarette

By Flavor

  • Tobacco
  • Mint
  • Menthol

By Distribution Channel

  • Online
  • Offline

By Geography

  • Americas
  • USA
  • Canada
  • Chile
  • Europe
  • United Kingdom
  • Germany
  • France
  • Middle East and Africa
  • Egypt
  • UAE
  • Asia Pacific
  • China
  • Japan
  • Indonesia
  • Philippines
  • Vietnam
  • Malaysia

Table of Contents

1. Introduction
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
2.2. Assumptions
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Market Opportunities
4.4. Porter’s Five Forces Analysis
4.4.1. Bargaining Power of Suppliers
4.4.2. Bargaining Power of Buyers
4.4.3. Threat of New Entrants
4.4.4. Threat of Substitutes
4.4.5. Competitive Rivalry in the Industry
4.5. Industry Value Chain Analysis
5. E-cigarettes Market Analysis, by Product
5.1. Introduction
5.2. Modular E-Cigarette
5.3. Rechargeable E-Cigarette
5.4. Next-Generation E-Cigarette
5.5. Disposable E-Cigarette
6. E-cigarettes Market Analysis, by Flavor
6.1. Introduction
6.2. Tobacco
6.3. Mint
6.4. Menthol
6.5. Others
7. E-cigarettes Market Analysis, by Distribution Channel
7.1. Introduction
7.2. Online
7.3. Offline
8. E-cigarettes Market Analysis, by Geography
8.1. Introduction
8.2. Americas
8.2.1. USA
8.2.2. Canada
8.2.3. Chile
8.2.4. Others
8.3. Europe
8.3.1. United Kingdom
8.3.2. Germany
8.3.3. France
8.3.4. Others
8.4. Middle East and Africa
8.4.1. Egypt
8.4.2. UAE
8.4.3. Others
8.5. Asia Pacific
8.5.1. China
8.5.2. Japan
8.5.3. Indonesia
8.5.4. Philippines
8.5.5. Vietnam
8.5.6. Malaysia
8.5.7. Others
9. Competitive Environment and Analysis
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. Company Profiles
10.1. Philip Morris International Inc.
10.2. Altria Group Inc.
10.3. British American Tobacco PLC
10.4. Japan Tobacco, Inc.
10.5. Imperial Tobacco Group
10.6. NJOY Inc.
10.7. Reynolds American Inc.
10.8. ITC Limited
10.9. J WELL France
10.10. JUUL Labs

Companies Mentioned

  • Philip Morris International Inc.
  • Altria Group Inc.
  • British American Tobacco PLC
  • Japan Tobacco, Inc.
  • Imperial Tobacco Group
  • NJOY Inc.
  • Reynolds American Inc.
  • ITC Limited
  • J WELL France
  • JUUL Labs



Table Information