The e-cigarette market revenue is expected to be $38,631.1 million in 2030, recording a compound annual growth rate of 10.1% during 2022–2030. This can be imputable to the rising awareness of the harms of the consumption of combustible cigarettes, coupled with ease in the availability of and innovations in the electronic variants. Vendors are concentrating on offering customization features, including temperature control and changeable nicotine concentrations, which is expected to inflate the demand for and production of these devices.
In addition, e-cigarette manufacturers are focusing on investments in major retail outlets and grocery stores, to promote and sell their products exclusively through kiosks and designated in-store hubs. Many e-cigarette providers have set up their own brand outlets and stores to provide vaping experiences similar to clubs.
For instance, Vaporfi Inc. is dedicatedly working on establishing exclusive vape stores globally, to sell its products directly to customers. Smokers are more attracted to these stores as they come across a variety of flavors and new devices here. Such outlets and designated stores are creating a demand for various vaping products offered by individual providers, thereby acting as a driving force for the market growth.
The growing demand for DIY e-juice is expected to create huge opportunities for the players in the market. DIY e-juice involves the mixing of three elements according to customers’ requirements. If an individual likes any particular flavor, then they can mix that concentrate with the base liquid and use it as they desire.
Further, JUUL Labs Inc. is offering mango and various other flavored ingredients for making e-juice. Customers can make their own e-juice and, hence, customize their flavor and smoking experience. Therefore, with the growing demand for customization and an enhanced smoking experience, the demand for DIY e-juice is expected to lead players to a competitive advantage.
The online distribution channel is projected to corner the highest growth rate, around 13%, during the forecast period. The growing marketing expenditures and online engagement through social media are strengthening the popularity and sales of these products across the globe.
T-vapors are the newest generation of vaping devices, the adoption of which has been growing at a significant pace. The heat-not-burn category is generating significant revenue owing to the growing popularity of Japan Tobacco Inc.’s Ploom brand and Altria Group plc’s Blu brand. A heat-not-burn e-cigarette is presumed to create a relatively similar aerosol sensation for smokers as traditional cigarettes. Moreover, this device is considered less harmful compared to a traditional cigarette, which, in turn, bolsters its adoption.
Further, it has been observed that vaporizers are mostly used by people who have been using either tobacco-based cigarettes or cig-a-likes. Moreover, vaporizers attract e-cigarette users who are looking for more flavors and a longer battery life. The market for open-tank vaporizers garnered the higher revenue during the past few years than closed-system vaporizers, as with the former, varied flavors can be inhaled.
Geographically, Europe led the e-cigarette market in 2022, and it is expected to retain its position in the coming years. This is attributed to the rising popularity of these products among young adults due to the availability of various flavors and their compact designs.
Key players in the market include British American Tobacco plc, Altria Group Inc., Japan Tobacco Inc., Imperial Brands plc, Philip Morris International, JUUL Labs Inc., Turning Point Brands Inc., Vapor Hub International Inc., FIN Branding Group LLC, and Innokin Technology Co. Ltd.