Electronic Cigarette Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 13.39 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Electronic Cigarette Market Analysis
The Electronic Cigarette Market is expected to register a CAGR of 13.39% during the forecast period.
As more people become aware of the harmful effects of traditional tobacco-based cigarettes, electronic cigarettes are gaining popularity, especially among young adults and adolescents. Electronic cigarettes have been recognized as an alternative to traditional cigarettes due to their several benefits, such as zero smoke, no pollution, reduced health-related problems, and the ability to smoke in public areas. Higher nicotine dependence, frequency of using e-cigarettes, poor online age verification, and several other factors are also boosting the demand for e-cigarette products.
Over the medium term, there was rising awareness regarding the health hazards associated with smoking. Rechargeable electronic cigarettes have also been well received by consumers, aided by their higher levels of flexibility compared to their single-use counterparts. As disposable electronic cigarettes offer cost-effective solutions to the new range of consumers looking to test electronic cigarettes, rechargeable electronic cigarettes heavily outweigh the cost difference in the long term.
The growth sales opportunity of electronic cigarettes through online channels made vendors improve their online purchase processes in terms of security and reliability, thus boosting the demand for these products online. With the growing popularity of vaping devices,s, flavor and fragrances vendors are introducing a wide variety of e-liquids to attract consumers. Different flavors, such as menthol, mint, chocolate, cola, bubble gum, and fusions of other fruits and flavoring substances are luring a large number of consumers to adopt these e-cigarette devices.
Electronic Cigarette Market Trends
Electronic Cigarette are a Cost-effective Solution than Traditional Tobacco Cigarettes
The majority of the world population is considering e-cigarettes or vapes as a healthier option compared to regular cigarettes. The added cost-effective nature of e-cigarettes over traditional ones is also driving the growth of the market. For instance, the cost of a single-use disposable e-cigarette is around USD 1-USD 15 per product. The rechargeable starter kits have multiple pods that cost around USD 25-USD 150 or more, whereas the liquid refill kits cost around USD 50-USD 75 monthly. The median price of a Marlboro Reds pack is around USD 13-USD 15, with nicotine content as high as 1.9 milligrams in each cigarette. The affordable cost of e-cigarettes, paired with the price-based marketing strategy of the vendors, encourages consumers to buy e-cigarettes. The affordability of the disposable models of e-cigarettes attracts consumers, making them an economical option. The reusability of e-cigarettes by refilling adds more value to the cost-effective aspect of the product, providing a cheaper solution to individuals.
North America Holds the Largest Market Share
North America holds the largest share of the e-cigarette market. The growing number of youths using these products has led to a rise in demand. For instance, the young population in the United States is the major consumer group of e-cigarettes. In 2021, the Centers for Disease Control and Prevention (CDC) reported that 2.06 million middle and high school students in the United States used e-cigarettes during a period of 30 days, including 2.8% of middle school students and 11.3% of high school students. E-cigarettes hold a major share of the tobacco products segment. Currently, more than 3,000 e-cigarette flavors are available in the US market, and a number of flavors are being introduced into the market every year. Nicotine-free e-liquids generate smoother vapes than other variants. Professional vapers who perform at several events and are involved in chain vaping for practice consider nicotine-free vaping as the best alternative to traditional vaping. The perception of vaping/e-cigarettes having a fashion appeal is also driving the demand for e-cigarettes in North America.
Electronic Cigarette Industry Overview
The electronic cigarette market is highly competitive due to the presence of several local, domestic, and international players. Therefore, the rivalry among the competitors is intense. Product innovation and development are the most adopted strategies by players operating in the market. With the increasing number of health-conscious consumers worldwide, major players are adopting several strategies to draw consumers' attention by introducing products with new technological advancements. Increasing firm concentration ratio and advertising expenses by companies are also strengthening the competition. Key players in the market include British American Tobacco PLC, JUUL Labs Inc., Imperial Brands PLC, Philip Morris International Inc., and Japan Tobacco Inc.
Electronic Cigarette Market Leaders
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Imperial Brands PLC
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JUUL Labs Inc.
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British American Tobacco Inc.
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Philip Morris International Inc.
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Japan Tobacco Inc.
*Disclaimer: Major Players sorted in no particular order
Electronic Cigarette Market News
- JUN 2022: Supreme agreed to acquire the vaping brand Liberty Flights Holdings in a deal of the value of GBP 14.75 million. As part of the acquisition, GBP 7.75 million will be paid in initial consideration, GBP 2 million in deferred consideration, and up to GBP 5 million in performance-related earn-out payments.
- AUG 2021: Philip Morris International Inc. announced the launch of IQOS ILUMA in Japan. The new IQOS ILUMA became the brand's first tobacco-heating system to introduce induction-heating technology, which utilizes no blade and requires no cleaning.
- JUL 2021: Japan Tobacco Inc. launched Ploom X, its next-generation heated tobacco device. Ploom X is made available across Japan, including convenience stores and select tobacco retail stores.
E-cigarette Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Product Type
- 5.1.1 E-cigarette Device
- 5.1.2 E-liquid
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5.2 Category
- 5.2.1 Open Vaping System
- 5.2.2 Closed Vaping System (Disposable Devices)
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5.3 Distribution Channel
- 5.3.1 Offline Retail
- 5.3.2 Online Retail
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5.4 Geography
- 5.4.1 North America
- 5.4.1.1 United States
- 5.4.1.2 Canada
- 5.4.1.3 Rest of North America
- 5.4.2 Europe
- 5.4.2.1 United Kingdom
- 5.4.2.2 Germany
- 5.4.2.3 France
- 5.4.2.4 Spain
- 5.4.2.5 Italy
- 5.4.2.6 Russia
- 5.4.2.7 Rest of Europe
- 5.4.3 Rest of the World
- 5.4.3.1 Asia-Pacific
- 5.4.3.2 South America
- 5.4.3.3 Middle East & Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Strategies Adopted by Key Players
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 British American Tobacco PLC
- 6.3.2 Juul Labs Inc.
- 6.3.3 RELX PLC?
- 6.3.4 Shenzhen iMiracle Technology Co. Ltd?
- 6.3.5 Imperial Brands Plc?
- 6.3.6 ShenZhen Joye Technology Co. Ltd?
- 6.3.7 Japan Tobacco International?
- 6.3.8 EVO Brands LLC?
- 6.3.9 Flavourart S.r.l.?
- 6.3.10 NJOY Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Electronic Cigarette Industry Segmentation
E-cigarettes usually include electronic circuitry and a power source supplying energy to the heating mechanism. They produce vapor by heating, which sets them apart from regular tobacco-based cigarettes that involve burning. Non-tobacco nicotine-containing liquid is most commonly used to produce vapor. The e-cigarette market is segmented by product type, category, distribution channel, and geography. By product type, the market is segmented into an e-cigarette device and E-liquid. By category, the market is segmented into open vaping systems and closed vaping systems (disposable devices). By distribution channel, the market is segmented into offline retail and online retail segments. By geography, the market is segmented into North America, Europe, and the rest of the world. The market sizing has been done in value terms in USD for all the abovementioned segments.
| Product Type | E-cigarette Device | |
| E-liquid | ||
| Category | Open Vaping System | |
| Closed Vaping System (Disposable Devices) | ||
| Distribution Channel | Offline Retail | |
| Online Retail | ||
| Geography | North America | United States |
| Canada | ||
| Rest of North America | ||
| Geography | Europe | United Kingdom |
| Germany | ||
| France | ||
| Spain | ||
| Italy | ||
| Russia | ||
| Rest of Europe | ||
| Geography | Rest of the World | Asia-Pacific |
| South America | ||
| Middle East & Africa |
E-cigarette Market Research FAQs
What is the current E-cigarette Market size?
The E-cigarette Market is projected to register a CAGR of 13.39% during the forecast period (2024-2029)
Who are the key players in E-cigarette Market?
Imperial Brands PLC, JUUL Labs Inc., British American Tobacco Inc., Philip Morris International Inc. and Japan Tobacco Inc. are the major companies operating in the E-cigarette Market.
Which is the fastest growing region in E-cigarette Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in E-cigarette Market?
In 2024, the North America accounts for the largest market share in E-cigarette Market.
What years does this E-cigarette Market cover?
The report covers the E-cigarette Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the E-cigarette Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What technological advancements are shaping the E-cigarette Industry?
The technological advancements shaping the E-cigarette Industry are trends like pod systems, disposables & heated tobacco devices.
E-cigarette Industry Report
The global e-cigarette market is witnessing significant growth, propelled by a shift towards e-cigarettes over traditional ones, the introduction of a variety of flavors, and broad product availability across different distribution channels. E-cigarettes, also known as vapes, are battery-operated devices that mimic smoking by producing an inhalable aerosol or "vapor". They offer an alternative to traditional tobacco smoking, with the e-liquid typically containing nicotine, flavorings, and other additives. The market is further fueled by the diverse range of e-cigarette flavors, including menthol, tobacco, chocolate, cola, bubble gum, mint, fruits, and nuts. The market segmentation includes product, flavor, mode of operation, and distribution channel, with next-generation e-cigarettes, tobacco flavors, automatic e-cigarettes, and specialty e-cig shops leading in their respective categories. The rising demand for next-generation e-cigarettes, with varying nicotine levels and refillable cartridges, significantly contributes to market growth. According to Mordor Intelligence™ Industry Reports e-cigarette market share, size, and revenue growth rate statistics provide a market forecast outlook and a historical overview. A sample of this industry analysis is available as a free report PDF download.
