The rising adoption of e-cigarettes from the emerging economies is boosting the demand for e-cigarettes.
The global e-cigarettes market was valued at US$ 16,758.9 Mn in 2020 is expected to reach US$ 45,689.1 Mn by 2027, with a growing CAGR of 15.4% during the forecast period (2021-2027).
Huge demand for flavored e-cigarettes from consumers is accelerating the industry’s growth. Around 43% of the young e-cigarette consumers who tried them were primarily driven by the appealing flavors. According to a study by the U.S. FDA 97% of the current youth e-cigarette users are using flavored e-cigarettes. Fruit and mint are among the most preferred flavors among high school students. The youths are more attracted by the flavors and are thus getting addicted to the e-cigarettes. To break this chain the FDA banned the two most common flavors which are fruits and mint to discourage the use of e-cigarettes, which is anticipated to hamper the market growth during the upcoming years.
The vape mod segment is anticipated to hold the largest market share throughout the forecast period. The popularity of vape mod among European countries and North America is supporting the market growth. In addition to this, the companies in the e-cigarettes market space are also developing new products supporting the vape mod market segment. Further, the e-liquid component segment registered the highest CAGR in the e-cigarettes market. The e-liquid market has been driven by the introduction of new flavors by the market players coupled with the growing consumer adoption of flavored e-cigarettes.
The tobacco industry players are more confident about the e-cigarette technology and are funding the research related to the effects of e-cigarettes on human health. British American Tobacco recently funded a study that uses 3D modeling to differentiate the inflammation in lungs from regular cigarettes and e-cigarettes. The study showed a dramatic drop in the lung inflammation by the use of e-cigarettes. Research and investments like these are accelerating the market demand.
In terms of geography, the Asia Pacific is growing at a significant rate and China is the largest contributor to the rising revenue generation in the region. China is the largest manufacturer of e-cigarettes among the Asia Pacific countries. In the Asia Pacific region, the increasing use of e-cigarettes as a substitute for conventional smoking and the recreational use of e-cigarettes is proliferating the market growth. The offline distribution channel accounted for the largest market share in the region whereas the online distribution channel registered the highest growth rate during the forecast period. Moreover, the region has the presence of the world’s most populous countries i.e. India and China, and also the presence of a large young population, which is anticipated to drive the market growth in the Asia Pacific region. However, the government regulations from various countries across the region are anticipated to hamper the market demand. For instance, e-cigarettes have been banned in India to prevent e-cigarettes from becoming an epidemic in the country.
Imperial Brands, Vaping360, Veppo Vape Shop, British American Tobacco plc, JT International AG, NJOY, PHILIP MORRIS PRODUCTS S.A., Healthier Choices Management Corp., and Jwell France, among others, are major players in Global E-cigarettes Market