Published: July 2019 | Report Code: SE11698 | Available Format: PDF | Pages: 106
South Africa E-Cigarette Market Overview
South Africa e-cigarette market was valued at $20.7 million in 2018 and is expected to register a CAGR of 18.6% during 2019-2024. Rising health awareness among the traditional cigarette smoking populace and increasing sale of e-cigarette through online channels are driving the adoption of e-cigarettes in South Africa.
On the basis of product, South Africa e-cigarette market has been categorized as vaporizer, vape mod, cig-a-like, and T-Vapor. Of these, vaporizer category held the largest market share in 2018. The rising popularity of vaporizers can be attributed to various factors, such as their low cost, dense aerosol production, and ability to support multiple flavors at the same time. Development in vaping technology and introduction of new flavors are further expected to expand the customer base of vaporizers in the country.
South Africa e-cigarette market has been segmented under the age groups of 16-24 years, 25-34 years, 35-44 years, 45-54 years, 55-65 years, and 65+ years. E-cigarettes are currently popular among the young people in the country. People in the 16–24 and 25–34 age groups together contributed over 55.0% share to the market in 2018 and are further expected to provide impetus to the demand for e-cigarettes during the forecast period, owing to the increasing preference for these e-cigarettes as an alternative to tobacco cigarettes.
On the basis of gender, South Africa e-cigarette market has been categorized into male and female. Of these, male category held the larger share in 2018. The category accounted for 85.4% market share in 2018, which is further expected to reach a market share of 81.6% by 2024, demonstrating a CAGR of 17.7% over the forecast period.
E-Cigarette refill aftermarket is categorized on the basis of flavor into fruit, tobacco, menthol, candy, savory/spice, bakery/dessert, beverage, menthol tobacco, and others. Of these, tobacco was the most popular flavor among the consumers in the country during the historical period, primarily due to the close resemblance of tobacco-flavored e-cigarettes to traditional cigarettes in terms of taste and aerosol formation.
South Africa E-Cigarette Market Dynamics
The proliferation of e-cigarette retail websites is one of the major drivers resulting in the positive growth of the market. The major factors responsible for surging e-cigarette sales in South Africa include diminishing usage of conventional cigarettes, cost-effectiveness, relative healthiness compared to conventional cigarettes, convenience, and safety offered. The information delivered through online platforms is significant in determining the perception of regular users of e-cigarettes. E-cigarette companies are increasingly marketing through online channels and promoting their products through social media and by offering online discounts. The major e-cigarette manufacturing companies in South Africa are delivering their products through suppliers, who distribute e-cigarettes online on behalf of the company. It includes suppliers such as VapeShop, Vape Africa, and eCiggies Online Store.
With the growing popularity of e-cigarettes, flavor and fragrance vendors are introducing a large variety of e-cigarette flavors to attract e-cigarette manufacturers. Different flavors such as menthol, mint, chocolate, cola, and bubble gum, apart from fusions of other fruits and flavoring substances are luring a large number of consumers to adopt e-cigarettes. Further in South Africa, it has been witnessed that around 20.0% of the populace smokes after the age of 15, and 450 thousand people use e-cigarettes.
Moreover, the introduction of various flavors in e-cigarettes is attracting the youth to use e-cigarettes. The demand for new flavors is rapidly increasing among consumers, and as a result, manufacturers are focusing on launching e-cigarettes with new flavors. For instance, in 2019, Twisp (Proprietary) Limited, a vapor brand in South Africa, launched a new limited edition ‘Rebel Ice’ flavor in their product category. Hence, just like other e-cigarette markets, South Africa is also exhibiting an increasing demand for flavored e-cigarettes.
E-cigarettes, despite being less harmful than traditional cigarettes, do not completely eliminate the risk of health damage caused by nicotine or the emission of certain chemicals. In South Africa, the current tobacco law does not regulate any e-cigarette or nicotine-based product. This has made the consumers uninformed about the increasing health risk associated with the continuous use of e-cigarettes. To tackle the confusion related to the safety of e-cigarettes, the South African government, with support from the World Health Organization (WHO), is planning to approve the “Control of Tobacco Products and Electronic Delivery Systems Bill” by the end of 2019.
The key areas of the bill focus on restrictions on public smoking, regulations on promotion of tobacco products and electronic delivery systems; prohibition on financial or other support; prohibition on vending machines; standardization of the packaging and appearance of tobacco products and electronic delivery systems; and age restrictions on the sale of products. The bill is likely to create major hindrances in the growth of e-cigarette market in South Africa, as manufacturers would not be able to advertise their tobacco products and electronic delivery systems.
South Africa E-Cigarette Market Competitive Landscape
Due to unclear regulations and import policies, the e-cigarette market in South Africa is dominated by imported devices, majorly form China. Companies such as Shenzhen IVPS Technology Corporation Ltd., Shenzhen IJOY Technology Co. Ltd., Joyetech Group, and JUUL Labs Inc. are the key players operating in the market.
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