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E-Cigarette Market to Reach $70 Billion by 2023

January 2018

Global e-cigarette market is forecasted to attain a value of $70 billion by 2023, P&S Market Research

Browse the Report Summary at: https://www.psmarketresearch.com/market-analysis/e-cigarette-market

The growth in the market will be led by factors such as increasing demand for smokeless and ashless vaping and surge in the number of vape shops and designated stores.

The e-cigarette market can be broadly categorized into cig-a-like, vaporizer, vape mods and t-vapor product types. The market for t-vapor is projected to witness the fastest growth, of around 45%, during the forecast period. T-vapor is comparatively a new category that uses real tobacco. T-vapor products are sold in two versions: heat-not-burn and infused. Cig-a-like can further be categorized into disposable and rechargeable types, while vaporizer can be segmented into open tank and closed system types.

The major channels of distribution are vape shops, supermarkets, online, and tobacconists. Among these channels, vape shops are estimated to generate the highest revenue for the e-cigarette market in 2017.

Asia-Pacific projected to be the fastest growing market during the forecast period

Asia-Pacific is the region offering ample growth opportunities for the vendors. Large population coupled with increasing urbanization has been propelling the demand in the region. China has been the forerunner in the regional e-cigarette industry, with an estimated 40.3% share in 2017. After the U.S. and the U.K., China is estimated to be the third largest e-cigarette market globally in 2017, which is further expected to grow during the forecast period.

On the basis of a survey conducted by the Chinese Center for Disease Control and Prevention in 2014, 45% of students aged 13–15 years had heard of e-cigarettes and 1.2% had used them in the preceding 30 days. It has been observed that for every 1% consumer shift from combustible cigarettes to its less harmful counterpart, the market for latter in the country increases by almost $5 billion. Advertisement campaigns have been educating the consumers about the benefits of switching from combustible cigarettes to its less harmful alternative, consequently driving the e-cigarette market in the country.

Shift toward smokeless and ashless vaping as the key market trend and driver

The smoke generated by burning tobacco is equally harmful to humans as it is to the environment. E-cigarettes do not emit smoke and instead produce mist, which easily dissolves in the air within seconds, thus eliminating the side-effects of burning tobacco. Besides, they also eliminate the need for dumping cigarette butts and flicking ash in the open. Such factors promote safe smoking and drive the global e-cigarette market.

Industry witnessing a large number of mergers and acquisitions

Competition in the e-cigarette industry is being restructured with every major merger and acquisition taking place. British American Tobacco (BAT), Japan Tobacco Inc., Altria Group, Imperial Brands, and NJOY LLC have been the major players involved in inorganic expansion. In July 2017, BAT completed the acquisition of Reynolds American Inc. to enhance its tobacco and t-vapor product portfolio. BAT has recently showed interest in acquiring the South African company Twisp to expand its next-generation product offerings in South Africa. Imperial Brands, on the other hand, acquired the U.K.-based vaping products company Nerudia to enhance its next-generation product portfolio.

Growing number of partnerships in the industry

Innovations and advancements in technology are expected to pave the way for next-generation products from traditional tobacco-smoking practices. Traditional tobacco manufacturers across the globe are moving into the design, development, production, and sale of vaping products because of the increased interest of people in these products and the growing demand for tobacco cigarette alternatives. The manufacturers are entering into partnerships with big tobacco players to increase their production and sale aimed at a greater reach. Cigarette manufacturers are also focusing on collaborations with technology providers to enter the e-cigarette market with more innovative and advanced products. Besides, tobacco companies are entering into agreements with other businesses to increase their business, including agreements based on raw material supply, patents, product rights, and other regulating factors. For instance, in 2016, Altria Group expanded its strategic framework with Philip Morris International with a joint R&D and technology-sharing agreement.

E-Cigarette Market Segmentation by Product

  • Cig-a-like
    • Disposable
    • Rechargeable
  • Vaporizer
    • Open Tank
    • Closed System
  • Vape Mods
  • T-Vapor
    • Heat-Not-Burn
    • Infused

E-Cigarette Market Segmentation by Distribution Channel

  • Vape shops
  • Supermarkets
  • Online
  • Tobacconists

Market Segmentation by Geography

  • North America E-Cigarette market
    • By Product
    • By Distribution Channel
    • By Country - U.S., Rest of North America
  • Europe E-Cigarette market
    • By Product
    • By Distribution Channel
    • By Country - U.K., France, Russia, Germany, Italy, Rest of Europe
  • Asia-Pacific E-Cigarette Market
    • By Product
    • By Distribution Channel
    • By Country - China, Japan, South Korea, Rest of Asia-Pacific
  • Rest of the World E-Cigarette Market
    • By Product
    • By Distribution Channel

E-Cigarette Aftermarket Segmentation by Product

  • Aftermarket Products
    • Refill (Cartridge, and e-liquid)
    • Battery and charger