E-Cigarette Market

Global E-Cigarette Market Size (2024 to 2029)

The global e-cigarette market is expected to grow at a CAGR of 15.2% from 2024 to 2029 and the market size is predicted to be valued at USD 53.32 billion by 2029 from USD 26.28 billion in 2024.

The growing popularity of e-cigarettes over traditional cigarettes is one of the key factors driving the global market growth. The e-cigarettes are not as harmful as traditional cigarettes, according to a survey conducted by Medical Institutions and Associations. The demand for the e-cigarette is growing exponentially due to the increasing prominence among young people. It is reported that around 2.5 million young people are currently using e-cigarettes. Around the world, one in four people use e-cigarettes and the usage is expected to increase in the coming years due to the growing awareness of e-cigarettes among people worldwide, which is accelerating the growth rate of the market.

The high tobacco dosage in traditional cigarettes leads to the growing risk of cancer; this enhanced the demand to introduce e-cigarettes with controlled dosages of nicotine. Asthma patients can also take e-cigarettes as the toxic levels used in these are very low, and the risk is also low comparatively.

Customization of e-cigarettes is fuelling the growth rate of the global e-cigarette market. E-cigarettes can be customized as per the consumer preferences. The manufacturers are offering varied options such as control in nicotine dosages and flavors that account for propelling the demand for the market. Growing prominence for flavored e-cigarettes is anticipated to propel the market growth. According to the Centre for Disease Control and Prevention survey in 2023, up to 46.6% of sales of e-cigarettes increased between 2020-2022.

Growing investments in new technologies are contributing to the growth of the e-cigarette market. Many key players are investing in developing new e-cigarettes to attract consumers worldwide. The launch of innovative products is supporting the global e-cigarette market. Along with this, increasing sales of e-cigarettes with the acceptance of the customer is leveraging the market’s growth rate. In developed countries like the UK, the consumption of e-cigarettes is legalized, which is creating huge growth opportunities for the market.

Stringent rules and regulations by government authorities to reduce the nicotine consumption rate are hindering the growth of the global e-cigarette market. In many countries, a ban on the consumption of tobacco in either way is limiting the market growth rate. Government authorities are strictly prohibiting the usage of e-cigarettes among adults. In a recent survey, more than half of high school students are using e-cigarettes, which is deemed to increase the risk of nicotine and other harmful toxins. It is estimated that 14 million adults are currently using e-cigarettes. The growing risk of cancer and lung disorders is mostly possible due to the intake of tobacco. Almost 8 million people in the world die of diseases that occur due to tobacco use. Along with this, in underdeveloped countries, people are less aware of e-cigarettes, which is impeding the market growth rate. Around 1.3 billion people live in low-income countries around the world. This number is slightly declining the growth rate of the market.

With the ongoing study on the health risks associated with the use of e-cigarettes, the demand for the market growth is slowly restricting. According to a study done by the University of Kansas Medical Centre, about 34% of people who consume e-cigarettes are more likely to have heart attacks. Also, 25% and 55% of people suffer from coronary artery diseases and depression or anxiety disorders, respectively. Growing difficulty in getting approval from the government is a challenging factor for the market key players. Imposing strict rules in the trading department, the export and import of e-cigarettes for personal use is also degrading the growth rate of the market.

Impact of COVID-19 on the e-cigarette Market: 

The COVID-19 pandemic had a significant impact on the share of the e-cigarette market. Strict lockdown restrictions and the closure of the shops slowed down the growth rate of the market in 2020. The COVID-19-infected person was prone to have a higher risk if consumed e-cigarettes. This reduced the market size in 2020. On the other side, there are many people who have shifted to using e-cigarettes over traditional cigarettes with the increasing popularity, which has resulted in the increased demand for e-cigarettes and propelling the global market. The global e-cigarettes has been recovering from the COVID-19 impact since 2022 and is expected to regain momentum in 2023 and the market is anticipated to register a healthy CAGR during the forecast period.

REPORT COVERAGE:

This research report on the global e-cigarette market has been segmented and sub-segmented based on type, component, distribution channel, and region.

Global E-Cigarettes Market - By Type:

• Disposable
• Rechargeable
• Modular Devices

The rechargeable segment is anticipated to account for the leading share of the global market during the forecast period. Owing to the growing popularity of affordable types of e-cigarettes, the demand for this segment is growing eventually. Seasoned smokers use rechargeable e-cigarettes due to their cost-effectiveness and can also be recharged with a USB port.

The disposable segment is likely to hit the highest CAGR by the end of the forecast period with the increasing use of e-cigarettes that don’t need any setup like refill liquids and chargers.  

Global E-Cigarettes Market - By Component:

• Atomizer
• Vape Mode
• Cartomizer
• E-liquid

The vape mode segment accounted for around 50% of the global market share in 2022 and is expected to hold a promising occupancy in the worldwide market during the forecast period, owing to the increasing popularity of the availability of new flavors. The growing prevalence of inhaling or exhaling various Flavors available enhances the growth of the vape-mode segment in the global e-cigarette market.

The atomizer segment is expected to occupy a considerable share of the worldwide market during the forecast period. Atomizer e-cigarettes are safe to use. Atomizer doesn’t allow inhaling toxic chemicals that are found in traditional cigarettes. It is safe and cost-effective.

Global E-Cigarettes Market - By Distribution Channel: 

• Online
• Retail

The retail segment accounted for 84% of the share of the worldwide market in 2022 and is expected to continue to have the highest share throughout the forecast period. E-cigarettes are legally available in Vape shops and gas stations. These stores have a variety of e-liquids that showcase flexibility in providing various options to select according to the customer's choice. Some shops also offer to test the devices before and before making a decision on purchase.

The online segment is gaining traction and is anticipated to account for a promising share of the worldwide market during the forecast period. The growth of the online segment is growing eventually with the growing popularity of e-commerce. Online channels are applying different strategies to improve sales by offering convenient prices. Also, penetration of the Internet of Things is ascribed to boost the demand of this segment. A growing number of vendors selling e-cigarettes through e-commerce platforms greatly influences the segment’s growth rate.

Global E-Cigarettes Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

The North American e-cigarette market had the largest share of the global market in 2022 and the domination of the North American region is expected to continue throughout the forecast period. Increasing disposable income and growing awareness over the availability of new e-cigarette flavors available in stores are lavishing the North American market growth. The presence of key players and the development of innovative products using advanced technologies and increasing investments by private companies in the development of e-cigarettes are propelling the North American market growth. The U.S. is capturing the majority of the share of the North American market due to the government initiatives in regulating the use of tobacco primarily. Canada is expected to show a prominent growth rate during the forecast period.

The Asia Pacific e-cigarette market is predicted to register the fastest CAGR among all the regions in the global market during the forecast period due to the growing youth population. The rapid adoption of online stores to buy e-cigarettes and rising awareness to quit traditional cigarettes among consumers are majorly driving the growth of the e-cigarette market in the Asia-Pacific region. India and China have played a crucial role in leveraging the growth of the APAC market over the past couple of years and these countries are predicted to account for the major share of the APAC market in the coming years.

Europe is a promising regional market for e-cigarettes and is deemed to showcase the highest CAGR by the end of the forecast period. A complete ban on traditional cigarettes in many countries greatly influences the demand for e-cigarettes among the young population.

Regions such as Latin America and Middle East & Africa are esteemed to have huge growth opportunities in the near future. 

KEY MARKET PLAYERS:

Companies that are playing a dominating role in the global e-cigarette market are China National Tobacco Corp (China), Philip Morris Inc (Switzerland), Imperial Brands (England), Japan Tobacco Inc (Japan), Altria Group (US), ITC (India), PT Gudang Garam Tbk (Indonesia), KTG (South Korea), Tobacco Authority of Thailand (Thailand), Vietnam National Tobacco Corp (Vietnam), Eastern Co SAE (Egypt).

RECENT HAPPENINGS IN THE MARKET:

• In 2023, Altria announced that it is to acquire NJOY Holdings Inc. The deal was successful through a definite agreement for approximately USD 2.75 billion. Altria is planning to acquire global ownership of the NJOY and develop various products in the e-cigarette platform. This acquisition shall regulate the product portfolio of these companies.
• In 2022, Altria and JT Group collaborated together to enhance the heated tobacco portfolio. These companies work on the development of innovative smoke-free products so as to reduce harmful effects on adult smokers.