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The Global E-cigarette and Vape market size is projected to increase by USD 41.45 billion, at a CAGR of 20.09% between 2023 and 2028. The market is witnessing significant growth due to several key trends. One of the primary drivers is the increasing awareness of health hazards associated with traditional tobacco smoking, leading consumers to explore alternatives. Moreover, products produce a flavored aerosol that delivers nicotine to the lungs, without delivering tar to the lungs. Product innovations in the market, such as advanced technologies and diverse flavors, are also fueling market growth. Additionally, the increasing taxes and excise duties on e-cigarettes and vapes in various regions are expected to further boost market demand. However, challenges such as regulatory restrictions and potential health concerns persist, necessitating continuous product development and adherence to safety standards.
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The e-cigarette and vape market have witnessed significant growth due to increasing consumer preferences for tobacco alternatives and harm reduction. Customization options, such as temperature control and nicotine dosages, have become essential features in vaping products, driving market growth. Pod systems and modular devices cater to various consumer needs, with e-liquids available in a wide range of flavors, including menthol and tobacco. Regulations play a crucial role in the vaping industry, with regulatory frameworks being established to ensure product safety and consumer protection. E-liquid poisoning and compatibility issues are major concerns, necessitating stringent regulations. The market is segmented into distribution channels, including online marketplaces, retail stores, and vape shops. Established brands dominate the market, with new entrants focusing on product innovation and customer choice. Harm-reduction benefits and social acceptance of vaping products have contributed to their growing popularity.
Moreover, E-cigarette technology continues to evolve, with companies investing in research and development to improve product quality and performance. Imperial brands have entered the market through acquisitions, expanding their product portfolios. Vape juice and e-liquids are essential components of the vaping industry, with nicotine being a key ingredient. Harm-reduction benefits and consumer preferences for various flavors drive demand for these products. However, concerns over health risks and regulatory challenges persist, impacting market growth. Atomizers and squonk mods are essential components of advanced vaping devices, catering to the needs of experienced vapers. Product customization and compatibility with various e-liquids are critical factors influencing consumer choice. BIS Research and other market research firms provide insights into market trends, growth opportunities, and competitive landscape. The vaping industry continues to evolve, with new product innovations and regulatory challenges shaping its future.
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. 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 such as touchscreens 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 Modular e-cigarette 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 Modular e-cigarette segment was valued at USD 9.10 billion in 2018. 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.
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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 chocolate, 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market has experienced significant growth in recent years, driven by consumer preferences for tobacco alternatives and harm reduction. Temperature control technology, nicotine dosages, and product customization are key trends in this market. Pod systems and disposable e-cigarettes cater to those seeking simplicity, while squonk mods and advanced personal vaporizers appeal to experienced vapers. Flavors, including menthol and tobacco, are a significant draw for consumers. E-liquids, or vape juice, come in a wide range of nicotine strengths and flavors. Atomizers and compatibility issues are important considerations for vapers, along with health risks and regulations. Retail stores and vape shops serve as key retail outlets for vaping products. Harm-reduction and social acceptance are ongoing concerns, with ongoing research from organizations like Bis Research and Logic Technology. Health benefits, consumer choice, and technology advancements continue to shape the e-cigarette technology landscape. However, concerns over e-liquid poisoning and youth vaping remain. Nicotine, a key ingredient in e-liquids, poses health risks. Customization and technology advancements continue to drive innovation in this market. Imperial brands have entered the market, offering their own tobacco alternatives. Overall, the e-cigarette and vape market continues to evolve, with a focus on consumer preferences and harm reduction.
Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 20.09% |
Market growth 2024-2028 |
USD 41.45 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
14.39 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 51% |
Key countries |
US, UK, France, Germany, and China |
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 forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our market 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 Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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