South Africa E-Cigarette Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

South Africa E-cigarette Market Data

South Africa E-cigarette Market Trends & Drivers

Increased Demand for Flavored E-Cigarettes

• 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.
• 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.

Growing Health Awareness in the Country

• The awareness pertaining to the harmful effects of smoking and the use of traditional cigarettes is increasing day by day. This is leading to the making of alternatives that will help to reduce the usage of conventional cigarettes.
• In South Africa, more than 39,000 people lose their lives to conditions caused by tobacco products each year. Cancer caused by smoking is one of the major concerns affecting the populace.
• E-cigarettes eliminate the entrance of around 4,000 chemicals, which are present in tobacco smoke.
• Additionally, increasing government initiatives, such as a rise in tax rates and improved regulatory control, are also contributing to the growing consumption of e-cigarettes, which has made consumers shift toward nicotine-based devices.
• Hence, on account of the rising benefits of e-cigarettes over traditional cigarettes, and with growing health awareness among consumers, the demand for e-cigarettes is increasing in the country.

Implementation of Strict Legal Framework

• 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 consumers uninformed about the increasing health risks 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), has planned a bill called “Control of Tobacco Products and Electronic Delivery Systems Bill”. Which is somehow retarding the overall growth of the e-cigarette market.

The key area of bills is the following:

• Restrictions on public smoking
• Regulations on the promotion of tobacco products and electronic delivery systems
• Prohibition of financial or other support
• Prohibition on vending machines
• Standardization of the packaging and appearance of tobacco products and electronic delivery systems
• Age restrictions on the sale of products
• The bill is creating major hindrances in the growth of the e-cigarette market in South Africa, as manufacturers are not able to advertise their tobacco products and electronic delivery systems.

South Africa E-Cigarette Industry Outlook

Product Insight

• On the basis of product, the vaporizer category held the largest market share of around 40% in 2023.
• 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.
• The development in vaping technology and the introduction of new flavors are further expected to expand the customer base of vaporizers in the country.
• Vaporizers are majorly preferred by consumers using tobacco-based cigarettes or cig-a-likes. However, they are also attracting e-cigarette users looking for more flavors and longer battery life for vaping devices.
• Vaporizers are further categorized into open tank and closed systems. The market for open-tank vaporizers garnered higher revenue in 2023 as compared to that of closed-system vaporizers, as open-tank vaporizers allow the users to utilize the same device for different types of flavors, which, in turn, results in their high demand in the market.
• The t-vapor category is in its nascent stage, with e-cigarette manufacturers working on new products to gain consumer interest. Heat-not-burn products are gaining popularity among traditional smokers across the country. A heat-not-burn e-cigarette is presumed to have relatively similar aerosol production as that in the case of a traditional cigarette.
• Moreover, it is considered less harmful when compared to a traditional cigarette. These factors are, therefore, responsible for the high consumption of heat-not-burn e-cigarettes.

Market Segmentation by Product

• Cig-a-like
• Vaporizer (Largest Category)
• Vape Mod
• T-Vapor (Fastest-Growing Category)

Gender Analysis

• Based on gender, the male category dominates the market, with a share of around 80% in 2023, and it is also expected to remain dominating throughout the forecast period. This is because men are more prone to smoking as compared to women.
• In South Africa, according to Campaign for Tobacco-Free Kids, 41.2% of men and 11.5% of women use tobacco products. It also stated that around 10% of male deaths and 5% of female deaths are caused by tobacco in South Africa.

Market Segmentation by Gender

• Male (Larger Category)
• Female (Faster-Growing Category)

Age Insights

• Vaping is quite popular among the young people in the country. People in the 16–24 and 25–34 age groups together contributed over around 35% share to the market in 2023 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.
• In various countries, the legal age to buy tobacco is 18 years but in some countries, there are certain age limits to purchase tobacco.

Market Segmentation by Age Group

• 16–24 (Fastest-Growing Category)
• 25–34 (Largest Category)
• 35–44
• 45–54
• 55–65
• 65+

Distribution Channel Analysis

• By distribution channel, the tobacconist category held the largest share in 2023. This is due to the easy availability of tobacco products and the large number of tobacconists in a particular area as compared to others, which is contributing to the development of the market.
• On the other hand, the online category is expected to witness the fastest growth during the forecast period. This can be due to the increasing e-commerce industry, the rising number of internet users, and the development of connectivity solutions such as 4G and 5G.

Market Segmentation by Distribution Channel

• Vape Shop
• Online (Fastest-Growing Category
• Hypermarket/Supermarket
• Tobacconist (Largest Category)
• Others

Aftermarket Insights

• Based on type, the e-cigarette aftermarket in South Africa is categorized into refill, battery and charger, and others, whereas the “others” category includes atomizers, tanks, and coils. Of these, refill, also known as e-juice, e-liquid, and pod, generated the largest revenue, holding a share of around 50%in 2023.
• Moreover, with the increase in demand for diverse flavors, such as fruit, menthol, candy, and bakery/dessert, the South African e-cigarette aftermarket is expected to witness notable growth in this category during the forecast period.
• Under this category, the South African e-cigarette refill aftermarket is categorized into nicotine and non-nicotine liquids. Between the two, the category of nicotine-based liquid held the larger share, amounting to nearly around 70%, in the refill aftermarket, as the majority of the e-liquid sold in the market contains nicotine.
• Whereas, with e-cigarettes increasingly being marketed as an alternative to tobacco cigarettes, the demand for non-nicotine liquid is projected to increase during the forecast period.

Market Segmentation by Aftermarket

• By Type
• Refill (Largest Category)
  • By liquid
    • Nicotine
    • Non-nicotine
  • By flavor
    • Fruit
    • Tabacco
    • Menthol
    • Candy
    • Savory/spice
    • Bakery/dessert
    • Beverage
    • Menthol tobacco
    • Others
• Battery and charger
• Others

Competitive Analysis

The e-cigarette industry has been unregulated in South Africa, yet the sales and marketing of e-cigarettes are proliferating on online platforms. E-cigarettes are also increasingly being sold through vape shops in the country, and based on the personal preferences of the populace, e-cigarette consumers purchase products primarily from online channels or through vape shops. The e-cigarette market in South Africa is dominated by international players, primarily from China.

South Africa E-Cigarette Companies News

• In June 2023, Altria Group Inc. announced the acquisition of NJOY Holdings Inc., for around USD 2.7 billion. In this acquisition, Altria Group Inc. gained global ownership of NJOY Holdings’ products.
• In September 2023, FRESOR, a vaping tech platform of ALD Group Limited, introduced its new product. This is expected to increase sales in the near future.