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The e-cigarette market size is forecast to increase by USD 35.90 billion at a CAGR of 18.09% between 2023 and 2028. The e-cigarette market has experienced significant growth due to the perceived safety advantages over traditional tobacco products, the increasing application as a smoking cessation tool, and the high availability across various distribution formats. E-cigarettes, also known as electronic nicotine delivery systems, heat a liquid solution into an aerosol that is inhaled, bypassing the combustion process associated with cigarettes. This has led to the belief that e-cigarettes carry less risk of health complications compared to their tobacco counterparts. Furthermore, e-cigarettes have gained popularity as a smoking cessation tool due to their ability to deliver nicotine without the harmful by-products of tobacco smoke. Lastly, the convenience of e-cigarettes is evident in their widespread availability through various channels, including retail stores, online platforms, and vending machines.
The e-cigarette market in North America is undergoing significant expansion, fueled by the increasing preference of consumers, notably young people, for these modern tobacco alternatives. The allure of e-cigarettes lies in their next-generation features, including customizable nicotine levels and refillable cartridges. These innovations cater to the evolving needs and preferences of consumers. Furthermore, major tobacco companies, such as Altria Group Inc, have entered the e-cigarette market through subsidiaries like Green Smoke Inc. It is essential to note that hookah charcoal, a traditional tobacco product, is sometimes used in conjunction with e-cigarettes for enhanced flavor and experience. However, the use of hookah charcoal with e-cigarettes is not an inherent feature of these devices and should be approached with caution due to potential health risks.
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Our market growth analysis report analyzed the market growth and forecasting data with 2023 as the base year, along with the key trends, and challenges. A holistic analysis of market growth and trends , driver and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.
The safety of e-cigarettes compared with other tobacco products is a key factor driving the market growth. Smoking tobacco globally causes over six million deaths annually, including 600,000 passive smokers. Health issues such as respiratory diseases, cancer, and heart conditions result from tobacco use. UK experts recommend e-cigarettes as a safer alternative to mitigate smoking-related effects. Over the past decade, efforts have been made to reduce nicotine content in tobacco products due to its addictive nature. E-cigarettes produce a flavored aerosol delivering nicotine to the lungs without toxic chemicals, making them perceived as a less harmful option. Health experts advise smokers to switch to e-cigarettes, contributing to the growth of the market.
The increasing number of E-Cigarette and Vape product launches is a key factor shaping the market growth. Successful product launches are essential for any market as they support the growth of the market as well as the product lines of the market players. Additionally, it increases the market share of the players and provides them with a competitive advantage. For example, in August 2021, RELX Technology promoted the release of its next-generation premium e-cigarette in the United Arab Emirates and Kuwait.
Similarly, in May 2022, the partnership between prominent market players Innokin Technology and Aquios Labs led to the launch of a revolutionary Lota water-based vaporizer. Therefore, such product launches by several market players are positively impacting the market . Hence, it is expected to drive market growth and trends during the forecast period.
Stringent regulations on the sales, advertising, and marketing of e-cigarettes are one of the key challenges hindering market growth. There are strict regulatory frameworks enforced by legal institutions regarding the sales, advertising, and marketing of e-cigarettes which can negatively impact the electronic cigarette market. For instance, in August 2018, the Ministry of Health and Family Welfare in India announced an advisory to all the state governments to ban the sale of Electronic Nicotine Delivery Systems (ENDS), such as e-cigarettes, HNB tobacco products, vapes, e-nicotine flavored electronic hookah, and other tobacco-based products.
As a result, there was an increase in bans on the sales of e-cigarettes across several states and Union Territories such as Punjab, Maharashtra, Karnataka, Kerala, Bihar, Uttar Pradesh, Jammu and Kashmir, Himachal Pradesh, Tamil Nadu, Puducherry, and Jharkhand. Therefore, these stringent regulations can significantly impact the profit margin of market players. Hence, such factors are expected to hinder market during the forecast period.
The market continues to evolve, appealing to individuals worldwide, particularly young adult consumers and younger generations seeking reduced-risk products. Innovations like next-generation e-cigarettes offer zero smoke alternatives, utilizing aerosol/vapor technology to reduce exposure to harmful substances found in traditional tobacco products. With a focus on health-related problems and nicotine dependence, efforts include online age verification and promoting single-use counterparts for safer use in public areas. As the market responds to concerns surrounding addiction and toxic substances, the trajectory of the market underscores its role in catering to evolving consumer preferences and health consciousness.
The offline segment is estimated to witness significant growth during the forecast period. One of the main segments that is significantly contributing to the growth of the market is the offline segment as it offers consumers various physical locations to purchase these products. One of the prominent offline distribution channels is the specialty vape shops which offer e-cigarettes and vaping products
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The offline segment was valued at USD 14.95 billion in 2018. The specialty retail stores have dedicated sections for each type of product such as e-cigarettes, e-liquids, accessories, and other vaping-related products. Additionally, these retail stores offer a unique and immersive shopping experience, enabling customers to explore various flavors, device types, and vaping equipment. Some of the major offline distribution channels that are significantly contributing to the growth of the e-cigarette market are hypermarkets and supermarkets, namely Walmart, Tesco, Carrefour, Kroger, Lidl, Coles, Woolworths, and Auchan. Hence, the increasing number of retail stores is expected to fuel the growth of this segment which, in turn, will drive the market growth during the forecast period.
The wide penetration of the modular e-cigarettes segment across several markets will increase market growth. This segment offers an improved vaping experience as they have many options for customization. Also, there is an increasing preference for this segment among consumers as it enables controlling the amount of vapor, variable voltage, battery strength, and e-liquid juice. The main factor which is significantly fuelling the growth of this segment is its cost-effectiveness. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market research and growth during the forecast period. Technavio's analysts have provided extensive insight into market forecasting, detailing the regional market trends and analysis influencing the market's trajectory throughout the forecast period.
One of the main factors that significantly contributed to the growth of the market in North America is the e increasing use of e-cigarettes among consumers. The main revenue generator of the market in North America is the US, with young people being the primary consumer segment. The Centers for Disease Control and Prevention (CDC) estimated that 2.06 million American middle and high school students, including 2.8% of middle school students and 11.3% of high school students, smoked e-cigarettes over the course of 30 days in 2021. Market players in the US are offering a wide variety of flavors of e-cigarettes with new flavors being launched frequently. Also, the increasing perception that vaping and e-cigarettes have a fashionable appeal. This is fuelling market in the region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, which forecasts to enhance their presence in the market report.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
The market analysis and report of 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 includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Customer Landscape
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
At a global scale, the market intersects with the evolving landscape of the Tobacco Products market. Insights from sources like the Statista Global Consumer Survey reveal Millennial / Generation Y respondents driving shifts in pricing and acceptance of e-cigarettes over traditional cigarettes in the medium term. Brands like V-Nix Vape Pen and ANYX GO offer sustainable vaping devices catering to diverse consumer preferences and smoking cessation efforts. As the market embraces nicotine-free e-liquids and innovative flavors like menthol and bubble gum, it adapts to meet the demands of young adults and adolescents, reshaping the future of smoking alternatives.
Furthermore, Leading brands like Vuse, blu, Logic, and NJOY drive the E-Cigarette Market with diverse offerings and a bottom-up approach to meet consumer demands. Insights from trade data and survey results guide strategies, while tools like Statista Consumer Insights provide valuable perspectives on performance factors and smoking rates. As brands innovate with next-generation e-cigarettes and a variety of flavors including tobacco, fruit, and sweet, they cater to non-smokers and youth with options aligning with cultural preferences. From convenience stores to online platforms, these offerings blend fashion appeal with cost-effective solutions, reshaping the landscape of smoking alternatives.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.09% |
Market Growth 2024-2028 |
USD 35.90 billion |
Market structure |
USD Fragmented |
YoY growth 2023-2024(%) |
14.06 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, UK, France, Germany, and China |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Altria Group Inc., British American Tobacco Plc, ePuffer Ltd., GD SIGELEI Electronic Tech Co. Ltd., Geekvape, ICCPP, Imperial Brands Plc, Innokin Technology Ltd., ITC Ltd., Japan Tobacco Inc., JUUL Labs Inc., JWEI Group, OXVA, PhixVapor, Shenzhen IVPS Technology Co. Ltd., Shenzhen KangerTech Technology Co. Ltd., Shenzhen Runfree Technology Co. Ltd., Shenzhen UWELL Technology Co. Ltd., SMOORE International Holdings Ltd., and White Cloud Electronic Cigarettes |
Market dynamics |
Parent market analysis, Market 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 the market forecast period |
Customization purview |
If our 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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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