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The Global E-cigarette and Vape market size is projected to increase by USD 66.83 billion and the market is estimated to grow at a compound annual growth rate (CAGR) of 30.41% between 2022 and 2027. Our market trends and analysis report examines historic data from 2017 to 2021, besides analyzing the current market scenario. The market's growth is influenced by several factors, such as the perceived safety of e-cigarettes compared to other tobacco products, the expanding availability of e-cigars across different distribution channels, and the continuous introduction of new products in the market.
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Higher safety compared to other tobacco products is driving market growth. There are several health problems associated with smoking tobacco products including respiratory diseases, cancer, and heart conditions. In fact, tobacco consumption is responsible for six million deaths annually. Passive smokers are increasingly encouraged by experts to shift towards consuming vape products. These products have reduced nicotine content which limits addiction. Moreover, products produce a flavored aerosol that delivers nicotine to the lungs, without delivering tar to the lungs. They help deliver nicotine without burning tobacco which makes it a safer alternative to conventional cigarettes. To cater to this demand several vendors are developing products that are safer options and have lesser nicotine content. Hence such factors will result in further market growth and trends during the forecast period.
Product innovations in the market are a key trend in the market. Vendors are innovating new products which helps them to gain a competitive advantage over their competitors. This also results in a greater number of sales and larger revenue generated. For instance, Philip Morris International Inc. launched IQOS ILUMA in Japan in August 2021. It had enhanced features such as induction-heating technology, which was introduced for the first time and eliminated cleaning requirements.
Additionally, Japan Tobacco Inc. launched its next-generation heated tobacco device, Ploom X in July 2021. It was available across the entire country at several convenience stores and tobacco retail stores. Such product innovations will contribute to greater market growth during the forecast period.
Health issues due to E-cigarettes are challenging market growth. Health issues due to E-cigarettes are challenging market growth. The health impacts of cigarettes have not been entirely identified and the long-term harmful effects of cigarettes and vaping are still under study. Certain studies have concluded that E-cigarettes trigger the same immune responses as normal cigarettes do. Moreover, they pose other concerns such as potential burns on the hands or the face caused by malfunctioning batteries. Moreover, substances used in E-cigarettes upon inhalation can contain potentially harmful elements like chemicals and heavy metals.
Additionally, the National Institute of Health concluded in October 2022 that long-term usage can seriously compromise the functioning of blood vessels in the body and increase the risk of cardiovascular disease. Moreover, another study by Cleveland Clinic found that vaping during pregnancy is not safe as it exposes the fetus to harmful chemicals like benzene and hydrogen cyanide. These can result in low birth weight and lung and brain damage in the developing fetus. Hence such factors will pose a hindrance to market growth during the forecast period.
The offline segment, which includes department stores, supermarkets, hypermarkets, convenience stores, and shopping malls, will play a significant role during the forecast period. Major retail players like Tesco, Walmart, and Target are actively involved in selling E-cigarettes and vape products. Vendors utilize branding, signages, and discounts to boost sales. Factors such as geographical presence, production, inventory management, and transportation influence vendor operations within this segment. Supermarkets and hypermarkets enhance product visibility by dedicating specific aisles and sections..
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The offline segment was valued at USD 8.26 billion in 2017 and continued to grow until 2021. Specialty stores offer several brands and products under one roof. Market players and distributors have planned budgets for the marketing, advertising, promotions, brand-building, training, and IT support of their products. Additionally, consumers increasingly opt to purchase machines from local stores. Hence the growing number of retail outlets, variety of choices according to type, flavors, and brands, and high usage among youth will increase the demand for this segment of the market during the forecast period.
Based on the product, Modular e-cigarette segment holds the largest market share. The modular design typically consists of separate components that can be easily assembled or disassembled. The battery module is essential to an e-cigarette and provides power to heat the e-liquid. Modular cigars may offer different battery capacities or types, such as removable rechargeable batteries or built-in rechargeable batteries. In addition to that, modular e-cigarette come with advanced control features, such as variable wattage or temperature control. Such factors will drive the market segment growth.
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America is the largest market due to several factors including the rising popularity of E-cigarettes among teenagers, the growing number of retail stores and established vendors as well as the shift towards online commerce.
Moreover, regional vendors are also offering numerous flavors like fruit and mint flavors to cater to a wider market and further expand market growth during the forecast period. Established vendors like Philip Morris International Inc. (Philip Morris) and R. J. Reynolds Vapor Company have particularly witnessed growing demand for their products due to their new product launches, marketing campaigns, and mergers. Hence such factors will boost the growth of the regional market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market growth analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The e-cigarette and vape market witnesses a surge, particularly among younger demographics, expanding rapidly with customizable options and varied nicotine dosages. Innovations in e-cigarette technologies like pod systems and squonk mods offer diverse flavor options, including menthol, fruits, nuts, and chocolate, driving market acceptance. While North America and Europe lead in legalized usage, Asian nations face regulatory restrictions from local authorities. Market growth is fueled by sleek designs, Bluetooth connectivity, and touchscreens, with ongoing mergers, acquisitions, and collaborations reshaping the competitive landscape. Despite bans and negative perceptions, online marketplaces and vape shops thrive, catering to a diverse consumer base seeking affordability and convenience.
The market forecasting forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
E-Cigarette And Vape Market Scope |
|
Market Report Coverage |
Details |
Page number |
156 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 30.41% |
Market growth 2023-2027 |
USD 66.83 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
29.66 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, China, UK, France, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Allo Technology Shenzhen Co. Ltd., Altria Group Inc., British American Tobacco Plc, DashVapes, Eleaf Group, ENVI, Flavour Beast, Geekvape, Imperial Brands Plc, Innokin Technology Ltd., Japan Tobacco Inc., JUUL Labs Inc., NicQuid LLC, Philip Morris International Inc., Shenzhen Eigate Technology Co. Ltd., Shenzhen FreeMax Technology Co. Ltd., Shenzhen IVPS Technology Co. Ltd., Shenzhen KangerTech Technology Co. Ltd., SVC Labs Ltd., and Turning Point Brands Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market research and growth report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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