The E-cigarette Market is valued at $17 billion in 2021 and is estimated to grow at a CAGR of 15.2% up to $34.5 billion by 2026, between the forecast period of 2021-2026.
An electronic cigarette is a device that consists of a battery, an atomizer, and an inhaler that simulates tobacco smoking without the use of tobacco. The device is filled with a nicotine-containing or nicotine-free liquid that is heated and transformed into vapor before being breathed, making it less dangerous than traditional cigarettes. This gadget is currently becoming recognized as a viable replacement for traditional cigarettes since it provides benefits such as no smoke, no pollution, reduced health-related issues, and the ability to smoke in public areas.
In the first nine months of 2021, British American Tobacco (BAT) added 3.6 million new customers to its vaping, heated tobacco, and oral products, which is more than in the entire year of 2020. At the end of September, their non-combustible products, which include those three varieties, had 17.1 million customers. These new categories are still losing money for BAT, but for the first time this year, that loss is expected to reduce. )
After a deadline passed without action by the Biden administration, Philip Morris International Inc. and its partner Altria Group Inc. were forced to stop importing their IQOS heated-tobacco sticks into the United States. Eonsmoke, a now-defunct e-cigarette retailer, agreed to pay $50 million to settle claims that it promoted and sold vaping products to minors by appealing to their social media inclinations, taste for fruit tastes, and willingness to listen to influencers
New Zealand has imposed a permanent ban on the sale of cigarettes to youngsters below the age of 14. The law will implement from 2027.
Consumers' willingness to quit smoking tobacco products, along with their perception of e-cigarettes as a safer alternative to regular cigarettes, has resulted in rising demand for these devices all over the world. As a result, manufacturers are creating new-generation e-cigarettes that offer various nicotine concentrations and allow users to replenish the cartridge. Furthermore, major corporations are purchasing or forming partnerships with small and domestic businesses. In response to changing consumer preferences, these companies are introducing a diverse selection of flavors, including tobacco, fruits, and botanicals. They're also improving the designs and technologies used in e-cigarettes to make them work better.
In many countries, local government restrictions on the sale of vaping products and e-liquids have hindered market growth. A lot of countries no longer distribute or sell vape products, resulting in lower sales. Furthermore, rigorous trading laws have made it hard for retail consumers to import vaping equipment for personal use.
Market Size Available
2021 – 2026
2021 - 2026
Type, Component, Distribution Channel
Various Analyses Covered
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities
Market Leaders Profiled
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).
The rechargeable segment, with a market share of more than 40% in 2020, was the most popular. Rechargeable devices are likely to become more popular in the future since they are more cost-effective in the long run and eliminate the need to repurchase consumables such as cartridges. Customers who produce their e-liquids are also free from the need to purchase pre-filled cartridges. Rechargeable devices can be used for longer lengths of time by changing the e-liquid cartridges. Rechargeable e-cigarettes and vapes are also more cost-effective for seasoned vapers, which is expected to boost their adoption.
During the projection period, the modular devices category is predicted to develop at a significant CAGR, as these devices allow users to mix different features and pieces to customize the flavor and volume of vapor emitted by the device based on personal preferences.
The e-liquid segment is predicted to increase rapidly over the forecast period. The introduction of a variety of flavors, including fruit, tobacco, dessert, and blended, has enhanced the demand for e-liquids. Furthermore, the Do-it-Yourself (DIY) trend, in which users mix and match flavors to make their e-liquid, is expected to significantly drive market growth.
With more than 80% market share in 2020, the retail store segment was the most popular. E-cigarettes were first sold in establishments such as vape shops and gas stations. Customers were able to choose from a variety of devices and e-liquids at these stores. Customers could also try out and test these gadgets before purchasing at vape shops.
The internet category is likely to increase rapidly over the forecasted period. People are buying e-cigarettes and vaping online because of the benefits that online marketplaces provide in terms of affordability, convenience, and access to a larger selection of products. Furthermore, when compared to brick-and-mortar stores, websites offer a broader selection of products. Vendors often have websites where clients may purchase items at a reasonable price.
In 2020, North America dominated the global market with a share of over 40%. The regional market is expected to increase due to the large presence of significant industry players. E-cigarettes and vaping products are widely advertised on social media channels. Vaping devices have generally been adopted by the youthful population as a safe alternative to cigarettes, which is expected to increase the acceptance of these goods. However, the current restriction in the United States on various e-cigarette tastes, notably fruit and mint scents, to prevent underage vaping, is projected to hinder market growth in the region to some extent.
Customers find it simple to acquire e-cigarettes in big numbers via online platforms because the majority of e-cigarettes are imported from other countries such as China, which is expected to fuel the Asia Pacific regional market growth.
Over the forecast period, the European market is expected to increase significantly. The adoption of e-cigarettes and vaping from vendors in the region by regional health organizations as a better alternative to tobacco smoking is expected to boost market expansion in Europe.
British American Tobacco is the leading company in the global e-cigarette market with a market cap of $87.25 billion and revenue of $35.71 billion.
The COVID-19 pandemic has slowed the market's progress. The announcement of the lockdowns greatly disrupted commerce and supply networks, which had an impact on e-cigarette production. As a result, the supply of these gadgets was decreased, and the lower demand for them as a result of people's poor financial health dealt another serious blow to commercial entities.
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 E-Cigarette Market, By Type
6.1.3 Modular Devices
6.1.4 Market Size Estimations & Forecasts (2021-2026)
6.1.5 Y-o-Y Growth Rate Analysis
6.1.6 Market Attractiveness Index
6.2 E-Cigarette Market, By Component
6.2.2 Vape Mod
6.2.5 Market Size Estimations & Forecasts (2021-2026)
6.2.6 Y-o-Y Growth Rate Analysis
6.2.7 Market Attractiveness Index
6.3 E-Cigarette Market, By Distribution Channel
6.3.3 Market Size Estimations & Forecasts (2021-2026)
6.3.4 Y-o-Y Growth Rate Analysis
6.3.5 Market Attractiveness Index
7. Geographical Landscape
7.1 Global E-Cigarette Market, by Region
7.2 North America - Market Analysis (2021 - 2026)
7.2.1 By Country
7.2.2 By Type
7.2.3 By Component
7.2.4 By Distribution Channel
7.3.1 By Country
22.214.171.124 Rest of Europe
7.3.2 By Type
7.3.3 By Component
7.3.4 By Distribution Channel
7.4 Asia Pacific
7.4.1 By Country
126.96.36.199 South Korea
188.8.131.52 South East Asia
184.108.40.206 Australia & NZ
220.127.116.11 Rest of Asia-Pacific
7.4.2 By Type
7.4.3 By Component
7.4.4 By Distribution Channel
7.5 Latin America
7.5.1 By Country
18.104.22.168 Rest of Latin America
7.5.2 By Type
7.5.3 By Component
7.5.4 By Distribution Channel
7.6 Middle East and Africa
7.6.1 By Country
22.214.171.124 Middle East
7.6.2 By Type
7.6.3 By Component
7.6.4 By Distribution Channel
8. Key Player Analysis
8.1 China National Tobacco Corp
8.1.1 Business Description
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.2 Philip Morris Inc
8.3 Imperial Brands
8.4 Japan Tobacco Inc
8.5 Altria Group
8.7 PT Gudang Garam Tbk
8.9 Tobacco Authority of Thailand
8.10 Vietnam National Tobacco Corp
9. Market Outlook & Investment Opportunities
List of Tables
List of Figures