The South Korea e-cigarette market is expected to reach $3.5 billion by 2024, registering a CAGR of 24.3% during the forecast period. This growth can be attributed to rising awareness against tobacco smoking, and technology advancement in e-cigarette devices, according to P&S Intelligence.
Insights into the market segments
Based on product, South Korea e-cigarette market is segmented into cig-a-like, vaporizer, vape mods, and T-Vapor out of which vaporizer held largest market share in 2018, owing to dense smoke experience it offers to the vapers. However, the market for T-Vapor is expected to exhibit a CAGR of 30.6% during the forecast period. Three major heat-not-burn product brands namely “IQOS” by Philip Morris international plc, “Glo” by British American Tobacco plc, and “Ploom Tech” by Japan Tobacco Industries, are in a stiff competition in the country in order to garner the market leadership in this segment.
Based on distribution channel, vape shops, tobacconists, and hypermarket/supermarket, together accounted for over 65% of the South Korea e-cigarette market, indicating brick-and-mortar retail outlets as a popular distribution channel for e-cigarettes in the country. On the contrary, by 2024, online distribution channel is expected to record the fastest growth. With uncertainty regarding the health concerns pertaining to the use of e-cigarettes still being unclear, the government is expected to raise taxes through tax reforms on e-cigarettes. Thus, it is expected that sellers would move to online channels to meet their profit margins as well as meet the consumer demand.
Based on region, Gyeonggi witnessed largest sales in the South Korea e-cigarette market. In the past two decades, the region has witnessed large scale urbanization with infrastructural development of Seoul being the epicenter of this drive. This has led to an increase in disposable income among the populace, where the household income rose by around YoY growth rate of 8%, from $15,335.4 in 2017 to $16,567.2 in 2018. Also, around 1/4th of South Koreans reside in this province in cities such as Seoul, Yogin-Si, Ansan-Si and others. Moreover, the clampdown on cigarettes by the government is expected to continue, driving consumers toward e-cigarettes.
Shift from tobacco cigarettes to e-cigarettes is observed as major driving force of the market
Growing awareness pertaining to the harmful effects of smoking is increasing day by day across the country. This trend of declining tobacco cigarette sales has prompted tobacco and e-cigarette manufacturers to focus on diversifying their e-cigarette portfolio. For instance, Philip Morris International Inc., launched “IQOS”, British American Tobacco Inc., launched “Glo” e-cigarette, and Japan Tobacco Inc., launched “Ploom” and “Logic” brand in the country. Further, with more drop-in tobacco cigarettes is expected in coming years, more adoption of e-cigarettes among the South Koreans is expected to rise. Therefore, this shift towards e-cigarette is projected to intensify the competition among local and global e-cigarette players in the South Korea e-cigarette market, during the forecast period.
Browse report overview with 47 tables and 34 figures spread through 106 pages and detailed TOC on "South Korea E-Cigarette Market Research Report: By Product (Cig-a-like, Vaporizer, Vape Mod, T-Vapor), Gender, Age-Group, Distribution Channel (Vape Shops, Online, Hypermarket/Supermarket, Tobacconist), Regional Insight (Chungcheong, Gangwon, Gyeonggi, Gyeongsang, Jeolla) – Industry Size, Share, Competition Analysis, and Growth Forecast to 2024" at:https://www.psmarketresearch.com/market-analysis/south-korea-e-cigarette-market
South Korea E-Cigarette Market Competitive Landscape
Owing to the presence of numerous players, the competition in South Korea e-cigarette market is competitive in nature, with companies such as Korea Tobacco & Ginseng Corporation (KT&G), Philip Morris International Inc., and Japan Tobacco Inc., operating as key players.
Korea Tobacco and Ginseng Corporation, Philip Morris International Inc., British American Tobacco p.l.c., Altria Group Inc., Japan Tobacco Inc., Imperial Brands PLC, JUUL Labs Inc. Shenzhen iSmoka Electronics Co., Ltd., Shenzhen IVPS Technology Corporation Ltd., Innokin Technology Co. Ltd, Shenzhen Kanger Technology Co., Ltd. are the key players operating in the South Korea e-cigarette market.
South Korea E-Cigarette Market Segmentation
Market Segmentation by Product
Market Segmentation by Gender
Market Segmentation by Age-Group
Market Segmentation by Distribution Channel
Market Segmentation by Region
South Korea E-Cigarette Aftermarket Segmentation