FTC Report: US Vape Market Topped over $26.7 Billion in 2021
According to the third report on the sales and advertising of e-cigarettes in the United States released by the Federal Trade Commission (FTC) on April 3, 2024, nine leading manufacturers saw a total sales increase of approximately $370 million in pod-style and disposable e-cigarette products sold to American consumers between 2020 and 2021, reaching a total of over $26.7 billion. These e-cigarette companies increased their spending on advertising and promoting products in 2021 by $90.6 million compared to 2020.
The report focuses on studying two main types of e-cigarettes. Some e-cigarettes are equipped with rechargeable batteries and replaceable pre-filled e-liquid pods, while others are disposable and can be discarded after the battery or e-liquid is depleted.
A report shows that sales of pod-system products increased from 21.3 billion USD in 2020 to 25 billion USD in 2021. Sales of disposable and non-refillable e-cigarette products also grew from 2.619 billion USD in 2020 to 2.671 billion USD in 2021.
The 2021 report also provided detailed information on the characteristics of e-cigarette products, including flavors, nicotine concentrations, and packaging of components in pod systems. Data shows that of the e-cigarette pod products sold or given away in 2021, 69.2% contained mint-flavored e-liquid, with the remaining products being tobacco-flavored.
Disposable e-cigarettes have not been subject to flavor restrictions by the Food and Drug Administration (FDA). In 2021, "other" flavors accounted for 71% of all disposable devices sold or given away, with fruit and fruit with mint/menthol being the most popular subcategories. These two subcategories alone made up over half of all disposable e-cigarette devices sold or given away in 2021.
According to the report, spending on e-cigarette advertising and promotion increased from $7.688 billion in 2020 to $8.594 billion in 2021. The three major expenditure categories were price discounts, distributor promotion fees, and point-of-sale advertising. These three categories accounted for nearly two-thirds of the spending in 2021.
Finally, the report discusses the steps taken by e-cigarette companies in 2021 aimed at preventing or deterring underage consumers from accessing their websites, signing up for mailing lists and rewards programs, or purchasing e-cigarette products online. These steps include using online self-verification to confirm users are at least 21 years old, and compliance with state laws requiring a signature from an adult upon delivery of e-cigarette products.
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