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).
E-cigarettes are also known as electronic cigarettes are electronic devices that are used to replicates the experience of smoking. E-cigarettes have a cartridge along with a heater that vaporizes e-liquid instead of burning tobacco. The rising number of health issues due conventional smoking is increasing the adoption of e-cigarettes as an alternative. E-cigarettes are used by adults as a safer substitute for regular smoking and are widely being used to help adults to quit smoking.
Rising consumer willingness to quit smoking is one of the key factors proliferating the demand for e-cigarettes. The increasing consumer awareness regarding the harmful effects of conventional smoking on human health and the environment as well is one of the positive market outlook. Additionally, the consumers have the perception that e-cigarettes are considerably safer to that traditional smoking which is boosting the market demand.
However, the research organizations and associations are tirelessly investigating the impact of e-cigarettes and vaping products on the human health. For instance, both the U.S. Centers for Disease Control and Prevention and the U.S. Food and Drug Administration are working towards finding the distressing incidents of severe respiratory illness associated with the sue of vaping products. The e-cigarettes market players, consumers and regulatory authorities are still unaware of all the possible repercussions of the product on human health, which is anticipated to restrict the market growth.
The Global E-cigarettes Industry Segmentation:
By Product Type
By Mode of Operation
By Distribution Channel
Based on product type, the rechargeable e-cigarettes segment accounted for a 37.3% share in the e-cigarettes market analysis
The rechargeable e-cigarettes eliminate the need for repurchase and can be reused multiple times by charging the battery of e-cigarettes. Rechargeable e-cigarettes are often preferred by experienced users compared to young adults, and women with less experience. Rechargeable e-cigarettes are primarily preferred as it reduces the cost of repetitive purchase. These can be refilled more quickly and effectively unlike other alternatives. The use of rechargeable e-cigarettes helps in reducing waste, ensuring energy efficiency, and supporting sustainable consumption, which are the key priorities of young consumers.
Based on the distribution channel, the offline channel is the fastest-growing segment in the e-cigarettes market analysis
The offline distribution channel accounted for 82.6% share in the base year 2020. The increasing number of tobacconist and speciality store contributed to the larger offline market share. However, with the surge in the e-commerce industry, the sales of online e-cigarettes also witnessed high growth. The strong infrastructure and rising number of industry players providing online products are supporting the fast growth of online distribution channels. The online segment offers a wide range of products, competitive pricing, promotional offers, and easy purchase options. These features are proliferating the sales of online e-cigarettes.
Based on geography, North America accounted for approximately 41.2% share in the e-cigarettes market in 2020
The major demand for e-cigarettes in the region is driven by the young population in the region. In 2020, around 3.6 million middle and high school students in the U.S. are using an e-cigarette. Whereas, in 2019, 4.5% of the U.S. adults were E-cigarettes users. Moreover, 8 out of 10 E-cigarettes consumers use flavored cigarettes which commonly include candy, fruit, and mint and menthol flavors. The flavor is the primary appealing factor for use of E-cigarettes among U.S. consumers. However, the current restriction by the U.S. Food and Drug Administration in 2020, against the use or manufacturing of unauthorized flavored e-cigarettes that includes mint and fruit flavors is restricting the growth of e-cigarettes in the region.
The region has the presence of key players in the e-cigarettes industry including JUUL Labs, Inc., Healthier Choices Management Corp., PHILIP MORRIS PRODUCTS S.A., and White Cloud Electronic Cigarettes among others. These players are expected to drive the e-cigarettes demand during the coming years with their innovations and product developments. The U.S. e-cigarettes industry is highly regulated and heavy excise and special taxes are imposed on these products. Furthermore, the laws related to product packaging of e-cigarettes, restricting youth access to e-cigarettes, and the requirement of licenses for retail sales of the product are hampering the market growth.
Company Profiles and Competitive Intelligence: The major players operating in the global e-cigarettes market are 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.
The report also provides in-depth analysis of E-cigarettes market dynamics such as drivers, restraints opportunities and challenges
COVID-19 Impact on the E-cigarettes Market Analysis
The COVID-19 has significantly impacted the e-cigarettes industry owing to the supply chain disruptions. The online sales of the e-cigarettes surged during the pandemic owing to the unavailability of products in offline stores. Due to the lockdown and restrictions on cross border trades the e-cigarettes industry witnessed shortage of raw material, closure of manufacturing facilities and unavailability of labors, hampering the e-cigarettes market growth. In addition to this, the government policies on the sales of essential goods only across most of the countries globally resulted in significant decline in the revenue generation of the e-cigarettes industry.
The report also provides in-depth analysis of key trends in E-cigarettes market forecast
|1||The use of e-cigarettes among the youth and young adults have increased enormously in recent years||Positive|
|2||There are conservations on the marketing and advertising of the e-cigarettes in some countries like India posing threat to the market growth||Negative|
|3||A major factor in the accelerating demand for e-cigarettes is use of flavors. Around 68% of the high school users of e-cigarettes in the U.S. prefer flavored e-cigarettes.||Positive|
|4||CBD vape juice is witnessing a rise in adoption among the e-cigarette users owing to the use of CBD in treatment of anxiety and depression||Positive|
The report also provides in-depth analysis of recent news, developments and investments
Company Profiles and Competitive Intelligence
The key players operating in the market are:
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