E-Cigarettes Market Report 2026

The e-cigarettes market size has grown rapidly in recent years. It will grow from $26.22 billion in 2025 to $29.54 billion in 2026 at a compound annual growth rate (CAGR) of 12.7%. The growth in the historic period can be attributed to rising tobacco consumption, growing awareness of smoking risks, advancements in battery technology, increasing popularity of flavored products, regulatory approvals for e-cigarettes.

The e-cigarettes market size is expected to see rapid growth in the next few years. It will grow to $46.01 billion in 2030 at a compound annual growth rate (CAGR) of 11.7%. The growth in the forecast period can be attributed to expansion of online retail channels, innovations in modular designs, rising demand for nicotine-free options, adoption of sustainable materials, increasing awareness of vaping alternatives. Major trends in the forecast period include flavored nicotine innovations, nicotine-free alternatives, health & wellness awareness, portable & compact device designs, premium & luxury e-cigarette products.

Growing awareness of health risks associated with smoking conventional tobacco cigarettes among smokers is driving the expansion of the e-cigarette market. Traditional tobacco cigarettes release harmful compounds that negatively impact individual health. E-cigarettes, in comparison, are less toxic and considered safer than conventional tobacco cigarettes. For example, in August 2025, the Centers for Disease Control and Prevention, a US-based government agency, reported that chronic and mental health conditions account for 90% of U.S. health expenditures, totaling $233.3 billion in care and $184.6 billion in lost productivity, with cardiovascular disease costs projected to reach $2 trillion by 2050. Hence, e-cigarettes offer reduced-risk alternatives to traditional cigarettes.

The rising affordability or lower cost compared to traditional cigarettes is expected to drive the growth of the e-cigarette market in the coming years. "Traditional cigarettes" refers to conventional tobacco cigarettes that are burned and smoked to inhale nicotine and other chemicals, unlike e-cigarettes, which deliver nicotine through vaporized e-liquid without combustion. Greater affordability fuels e-cigarette market growth by providing a lower-cost alternative to traditional cigarettes, allowing consumers to meet their nicotine needs more economically and encouraging adoption over costlier combustible tobacco products. E-cigarettes support this trend by offering a reduced per-use cost compared to traditional cigarettes, enabling consumers to maintain nicotine consumption at a lower expense while exploring a potentially less harmful option. For example, in 2023, Tobacco Control, an international peer-reviewed journal on the nature and consequences of tobacco use worldwide, reported that the average price of 1 mL of e-liquid dropped 69.2%, from US$7.96 to US$2.45. Hence, the increasing affordability relative to traditional cigarettes is driving the growth of the e-cigarette market.

In November 2023, Altria Group, Inc., a US-based tobacco company, acquired NJOY Holdings, Inc. for an undisclosed sum. Through this acquisition, Altria aims to strengthen its presence in the electronic nicotine delivery systems (ENDS) market and broaden its product portfolio in next-generation vaping and nicotine technologies. NJOY Holdings, Inc., is a US-based company specializing in e-cigarettes and vaping products.

Major companies operating in the e-cigarettes market are Philip Morris International Inc., Altria Group Inc., British American Tobacco plc, Japan Tobacco Inc., Imperial Brands plc, Njoy Inc., International Vapor Group Inc., Reynolds American Inc., Kimree Inc., Innokin, Healthier Choices Management Corp., ITC Limited, J WELL, Nicotek LLC, NicQuid LLC, R.J. Reynolds Vapor Company, Shenzhen IVPS Technology Co. Ltd., Shenzhen KangerTech Technology Co. Ltd., Vapor Hub International Inc., KangerTech, Shoreditch, Ritchy Group, Vapouriz Limited, Apollo Electronic Cigarettes, Vape Emporium Limited, JUUL Labs Inc., Breeze Smoke LLC, Logic Technology Development LLC, V2 Cigs, Green Smoke LLC, White Cloud Electronic Cigarettes, VaporFi Inc., South Beach Smoke LLC, SmokeTip LLC.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on imported e-cigarette components have disrupted the supply chain and increased production costs, particularly impacting prefilled disposable and rechargeable segments in Asia-Pacific regions such as China and India. While the tariffs have slowed expansion in price-sensitive markets, they have also incentivized local manufacturing and innovation, enabling manufacturers to offer cost-efficient and regionally compliant e-cigarette products.

The e-cigarettes market research report is one of a series of new reports that provides e-cigarettes market statistics, including e-cigarettes industry global market size, regional shares, competitors with an e-cigarettes market share, detailed e-cigarettes market segments, market trends, and opportunities, and any further data you may need to thrive in the e-cigarettes industry. This e-cigarettes market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

An e-cigarette is a handheld, battery-operated electronic device that contains a solution of nicotine, glycerine, and flavorings, which is converted into an inhalable mist by the user. These devices are available in a variety of flavors, including options like mint, menthol, and chocolate.

The primary product types of e-cigarettes include disposable, rechargeable, and modular variants. Disposable e-cigarettes are designed to be discarded after use and typically contain tobacco-free solutions with various flavors and nicotine levels. These products are distributed through various channels, including specialist e-cig shops, online platforms, supermarkets, tobacconists, and other retail outlets.Asia Pacific was the largest region in the e-cigarettes market in 2025. The regions covered in the e-cigarettes market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the e-cigarettes market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The e-cigarette market consists of sales of rechargeable e-cigarettes, modular e-cigarettes, disposable e-cigarettes, and other e-cigarettes. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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