Electronic Cigarette Market to Reach Valuation of USD 43.65 Billion by 2028 - Consumers' ability to Avoid Smoking Nicotine Products, along with their Perception of E-Cigarettes as a Better Alternative to Traditional Cigarettes, has resulted in Rising Interest in these Devices all over the Globe

Vantage Market Research

May 21, 2022

From the period of 2022 to 2028, the Global Electronic Cigarette Market is expected to reach USD 43.65 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 16.5%.

Due to various research conducted by medical institutions and associations, it is expected that increased awareness regarding e-cigarettes being safer than regular cigarettes, particularly among the younger generation will drive the market growth. The accessibility of customizable choices from manufacturers, such as temperature control and nicotine levels, is projected to boost the market growth. Additionally, new e-cigarette technologies such as pod systems and squonk mods have grown in popularity and user adoption in recent years. The increased emphasis on adopting safer alternatives to smoking is likely to enhance the use of e-cigarettes and vape devices over the forecast period. As e-cigarette and vape device supplies grew scarce in physical stores, sellers began distributing their items through online platforms and offered hand sanitizers and face masks as freebies for purchasing vaping products. Furthermore, a diverse selection of tastes, including menthol, tobacco, fruits and nuts, and chocolate, are available on the market, drawing a sizable client base. These flavors emit aromas when used in an e-cigarette or vape device. Furthermore, the lowering cost-effectiveness of these devices has enhanced customer acceptance and is expected to fuel the market growth during the forecast period.

Key Highlights from the Report

  • On the basis of Product Type, the market is segmented into Disposable, Rechargeable, and Modular. In the forecast period, the rechargeable segment held the largest market share. Rechargeable gadgets are likely to gain popularity since they are less expensive and eliminate the need to repurchase supplies such as cartridges. Customers who make their own e-liquid do not need to buy pre-filled cartridges. Battery-powered e-cigarettes are particularly cost-effective for seasoned smokers. Furthermore, rechargeable e-cigarettes emit less smoke and can be charged via a USB port, making them popular among the young in many significant countries.

  • On the basis of Distribution Channel, the market is characterized into Online, Specialist E-cig Shops, Supermarkets, Tobacconist, and Others. In the forecast period, the retail store segment held the largest market share. E-cigarettes were previously available in retail venues such as vape shops and gas stations. These stores helped clients choose from a variety of gadgets and e-liquids. Furthermore, vape shops that allow customers to try out and test these devices before purchasing them are likely to increase retail store segment development throughout the forecast period.

  • Asia Pacific is the fastest regional segment in terms of growth. Given that the majority of e-cigarettes are imported from nations such as China. Furthermore, buyers prefer to buy e-cigarettes in bulk through online platforms, which is likely to fuel Asia Pacific regional market growth. E-cigarettes and vaping from vendors have been approved by the region's health regulators as a better alternative to tobacco smoking, which is likely to boost market expansion in the Asia Pacific.

Some of the key players in the Electronic Cigarette Market include, Altria Group, British American Tobacco, Imperial Brands, International Vapor Group, Japan Tobacco, Nicotek LLC, Njoy Inc., Philip Morris International Inc., Reynolds American Inc., VMR Flavors LLC.

Market Dynamics:

Cost-effective Alternative to Traditional Tobacco

A large section of the global population views e-cigarettes or vapes as a healthier alternative to traditional cigarettes. In addition, the enhanced cost-effectiveness of e-cigarettes in comparison to traditional ones boosts the market growth. The low cost of e-cigarettes, combined with the vendors' price-based marketing strategy, encourages people to purchase e-cigarettes. The disposable forms of e-cigarettes are appealing to consumers since they are inexpensive to use. Furthermore, the reusability of e-cigarettes by refilling adds value to the cost-effective component of the product, providing a less expensive solution to individuals.

Nicotine e-cigarettes have been banned owing to harmful health effects.

Growing health concerns about the usage of nicotine-containing products are driving users to switch to non-nicotine e-cigarettes. Several federal and state health agencies are warning that nicotine consumption during adolescence can lead to addiction and impair the growing brain. Nicotine-containing e-cigarettes have been classified as drug delivery devices and are prohibited in a number of nations, including Japan, Sweden, Malaysia, and Australia. With mounting health and safety concerns about nicotine-containing e-liquid, manufacturers are emphasizing zero percent nicotine strength. In addition, limitations imposed by local governments in countries such as the United States and India on the sale of vaping products and e-liquids have stifled business growth. Furthermore, restrictive trade rules have made it impossible for retail consumers to import vaping equipment for personal use.

In the forecast period, North America dominated the global market with a share of more than 37.5%. The presence of key industry participants on social media is regularly exploited to market e-cigarettes and vaping products. The young generation has generally adopted vaping devices as a safer alternative to cigarettes, which should increase product acceptance. However, the current prohibition in the United States on various e-cigarette tastes, notably fruit and mint scents, to limit underage vaping is projected to stifle market growth in the region to some extent.