Latin America E-Cigarette Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 5.74 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Latin America E-Cigarette Market Analysis
The Latin American e-cigarette market is projected to register a CAGR of 5.74% during the forecast period.
- E-cigarettes and vaping devices are expected to gain significant traction during the forecast period due to the growing emphasis on adopting safer alternatives to smoking throughout the forecast. To meet the increasing demand for e-cigarettes and vape devices, vendors started to offer their products on the internet, including gifts with each purchase of vaping devices.
- People are increasingly using E-cigarettes or electronic nicotine delivery systems (ENDS) as a substitute for smoking or recreational purposes. Due to the growing health concern over conventional tobacco-based cigarettes, the e-cigarette market has witnessed significant growth over the past decade. In Latin America, vaping is either illegal, or the laws are uncertain about e-cigarettes.
- For example, vaping is banned in major countries like Argentina, Brazil, Mexico, and Venezuela, while there are no definite laws in countries like Peru and Colombia. As enforcement of e-cigarette laws is often open to local authorities, vape shops are usually found in places where they are technically illegal in the region. In the entire region, only five regions where the sale of e-cigarettes is legal and allowed are Chile, Ecuador, Honduras, Paraguay, and Costa Rica.
Latin America E-Cigarette Market Trends
This section covers the major market trends shaping the Latin America E-cigarettes Market according to our research experts:
Rising Prevalence of Smoking among Young Population
- Almost all tobacco usage begins in childhood and continues throughout young adulthood. The Frontiers in Public Health journal 2021 reports that in Brazil, approximately 24 million people smoke, and 16.9% of the population have used tobacco at some point in their lives. There has been a decline in smoking prevalence in Brazil in the last decade in all groups except for individuals aged 18-24.
- Moreover, changing physical, behavioural, and social characteristics accompany adolescence into adulthood, including tobacco use. In many countries around the Latin America region, illicit drugs, such as tobacco, are among the most commonly used substances. They are generally the second substance an individual tries out due to curiosity, a desire for acceptance in a group, or an urge to rebel against the establishment.
- Additionally, while direct marketing to minors is now prohibited by law, the tobacco industry continues to develop, package, and advertise its products in ways that appeal to the rising number of the younger population in the region. In addition to that, companies are innovating new products according to health and wellness, consumer preferences, etc. Since the sales of e-cigarettes are limited to a few Latin American countries, the distribution of these products is also limited by a few private companies such as Innokin Technology and KangerTech.
Chile Holds Significant Share
- According to World Population Review, Chile has the fifth-highest smoking rate with 44.70% in the world and the highest in Latin America. The Institute of Clinical and Health Effectiveness reported that in 2021, smoking had a direct cost of more than USED 1 billion alone in direct costs (treatments, hospitalizations, surgeries, medicine) to the Chilean government.
- As a result, the expenditure is equivalent to 0.8% of annual GDP and is 30% in excess of the amount collected from tobacco taxes yearly. Considering this fact, e-cigarettes are considered less toxic and safer than conventional tobacco cigarettes, making them a viable alternative.
- A research study concluded that the people who smoked only e-cigarettes had similar levels of carcinogens to people using nicotine-replacement therapies and had much lower toxicity levels than people who only smoked cigarettes. The reduced toxicity levels and cost concerns are expected to drive the e-cigarette market in Latin American countries.
Latin America E-Cigarette Industry Overview
The Latin American E-cigarettes market is competitive with many regional players. Some significant companies selling e-cigarettes in the Latin American market are Shenzhen Kanger Technology Co., Ltd, Innokin Technology, British American Tobacco, and Shenzhen IVPS Technology Corporation Ltd. (Smok). Most companies sell their e-cigarettes via websites such as Revolution Vapor Ltda., and C.R. Vapor. Since it's legal to sell or use an e-cigarette in Ecuador, where they are considered 'electronic nicotine delivery systems,' advertising of e-cigarettes in Ecuador is only allowed in venues accessed solely by adults, thereby providing some form of consumer knowledge regarding the brands or companies selling their range of e-cigarettes in the country.
Latin America E-Cigarette Market Leaders
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Innokin Technology
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Shenzhen Kanger Technology Co.,Ltd
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International Vapor Group
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British American Tobacco PLC
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Philip Morris Products Inc.
*Disclaimer: Major Players sorted in no particular order
Latin America E-Cigarette Market News
- August 2022: SMOK, the brand from Shenzhen IVPS Technology, which specializes in the research, development, production, and sale of e-cigarettes, launched its new SOLUS 2 series. After nearly 200 days in development, the SOLUS 2 has come to represent improved vaping experiences and cost-effectiveness for vapers worldwide.
- May 2022: Innokin Technology partnered with Aquios Labs to launch the brand-new water-based vaporizer 'Lota'. With this partnership, Lota can access innovative new technologies and products for closed vaping systems. The first generation of water-based vape juice from Aquios Labs, AQ30, supports 30% water.
- August 2021: Philip Morris International Inc launched IQOS ILUMA, the latest addition to its growing portfolio of smoke-free products for adults. The new IQOS ILUMA is the brand's first tobacco-heating system with induction-heating technology, which utilizes no blade and requires no cleaning.
Latin America 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 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 Completely Disposable Model
- 5.1.2 Rechargeable but Disposable Cartomizer
- 5.1.3 Personalized Vaporizer
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5.2 Battery Mode
- 5.2.1 Automatic E-cigarette
- 5.2.2 Manual E-cigarette
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5.3 Geography
- 5.3.1 Chile
- 5.3.2 Ecuador
- 5.3.3 Honduras
- 5.3.4 Paraguay
- 5.3.5 Costa Rica
- 5.3.6 Rest of Latin America
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Shenzhen Kanger Technology Co.,Ltd
- 6.3.2 Innokin Technology
- 6.3.3 British American Tobacco PLC
- 6.3.4 Philip Morris International Inc.
- 6.3.5 Shenzhen IVPS Technology Corporation Ltd. (Smok)
- 6.3.6 International Vapor Group
- 6.3.7 NicQuid LLC
- 6.3.8 NJOY Inc.
- 6.3.9 Japan Tobacco, Inc.
- 6.3.10 Nicotek LLC
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Latin America E-Cigarette Industry Segmentation
Electronic cigarettes simulate tobacco smoking by using electronic devices. The device consists of a battery, an atomizer, and a cartridge or tank for holding liquid. With this product, the user inhales vapor rather than smoke.
The Latin American electronic cigarette (e-cigarette) market is segmented based on product type, battery mode, and geography. Based on product type, the e-cigarette market is segmented into Completely Disposable Models, Rechargeable but Disposable Cartomizers, and Personalized Vaporizers. Based on battery mode, the market is segmented into Automatic e-cigarettes and Manual e-cigarettes. By geography, it is segmented into Chile, Ecuador, Honduras, Paraguay, Costa Rica, and Rest of Latin America.
For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).
| Product Type | Completely Disposable Model |
| Rechargeable but Disposable Cartomizer | |
| Personalized Vaporizer | |
| Battery Mode | Automatic E-cigarette |
| Manual E-cigarette | |
| Geography | Chile |
| Ecuador | |
| Honduras | |
| Paraguay | |
| Costa Rica | |
| Rest of Latin America |
Latin America E-Cigarette Market Research FAQs
What is the current Latin America E-Cigarettes Market size?
The Latin America E-Cigarettes Market is projected to register a CAGR of 5.74% during the forecast period (2024-2029)
Who are the key players in Latin America E-Cigarettes Market?
Innokin Technology, Shenzhen Kanger Technology Co.,Ltd, International Vapor Group, British American Tobacco PLC and Philip Morris Products Inc. are the major companies operating in the Latin America E-Cigarettes Market.
What years does this Latin America E-Cigarettes Market cover?
The report covers the Latin America E-Cigarettes Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Latin America E-Cigarettes Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the growth opportunities in the Latin America E-cigarette Market?
The growth opportunities in the Latin America E-cigarette Market are a) Clear and consistent regulations, along with product standardization, could improve consumer confidence and market legitimacy b) E-commerce platforms and alternative distribution channels can expand reach and cater to a wider audience, particularly in remote areas
Latin America E-Cigarette Industry Report
The Latin America e-cigarette market is undergoing substantial growth, driven by increased health awareness and a shift towards safer smoking alternatives like e-cigarettes. With products ranging from modular and rechargeable to next-generation and disposable e-cigarettes, and various flavors such as tobacco, fruit, and sweet, the market meets a broad consumer demand. Technological improvements in product design and distribution channels, including online platforms, specialist e-cig shops, supermarkets, and tobacconists, enhance accessibility and consumer appeal. Despite regulatory challenges in certain regions, countries like Chile and Ecuador see a rising demand due to legal backing, contributing to market expansion. This vibrant market, as detailed in Mordor Intelligence™ Industry Reports, promises significant growth and innovation in electronic nicotine delivery systems, catering to a young, health-conscious demographic seeking quality and safety in smoking alternatives. For comprehensive insights, a free downloadable report is available, providing a forecast and historical overview of the market.
