The Growing Global Market for E-Cigarettes

Nov.24.2022
The Growing Global Market for E-Cigarettes
The increasing social acceptance and demand for tobacco alternatives are expected to drive the e-cigarette market's 9.2% compound annual growth rate.

Several factors, such as the increasing social acceptance of electronic cigarettes, the continuous improvement of electronic cigarette devices, the surging demand for tobacco cigarette alternatives, rapid technological advancements, and ongoing product innovation, are expected to drive the development of the electronic cigarette market, with a projected compound annual growth rate of 9.2% for the forecast period of 2020-2030. According to data from P&S Intelligence, market revenues are expected to increase from $15.7 billion in 2019 to $39 billion by 2030. In recent years, the expanding range of flavors has become a major market trend.


Today, the increasing acceptance of electronic cigarettes is driving demand for their products, as they do not release toxic substances. Because tobacco-based cigarettes emit smoke, some governments have taken multiple measures to ban smoking in certain public places. Through these bans, governments aim to create a greener and more sustainable environment. Additionally, increasing public awareness of environmental and human health concerns is likely to drive global demand for electronic cigarettes.


In addition, the widespread availability of e-cigarettes through various distribution channels is expected to fuel global growth in the e-cigarette market. Currently, e-cigarette manufacturers sell and promote their products through dedicated stores, kiosks in grocery and retail stores, and outlet centers that offer e-cigarette experiences similar to those of clubs. These stores are seeing an influx of traditional smokers who can use a variety of flavors and e-cigarette products. The e-cigarette market is segmented by age group: 16-24, 25-34, 35-44, 45-54, 55-65, and 65+. In this market, the 16-24 age group had the largest market share in 2019, as modular e-cigarettes designed for young people became popular. Market participants are designing social media campaigns, such as #JUULing, to target this tech-savvy demographic. Currently, e-cigarette market participants are focused on product launches to stay ahead of competitors. For example, in March 2019, Japan Tobacco Inc. released two new flavors of tobacco capsules for its Ploom TECH brand: Pianissimo Aria Menthol and Pianissimo Pineapple Peach Yellow Cooler. Other market participants tracking these strategic moves include British American Tobacco, MCIG Inc., FIN Branding Group LLC, MadVapes LLC, Philip Morris International Inc., Shenzhen iSmoka Electronics Co. Ltd., Altria Group Inc., Smoker Friendly International LLC, and Innokin Technology Co. Ltd.


According to regional analysis, Europe held the largest share of the e-cigarette market in 2019, with the UK, Netherlands, Germany, Spain and Italy generating the highest revenue. This can be attributed to the increasing popularity of e-cigarette shop culture in the region. Looking ahead, the North American market is expected to experience rapid growth due to declining popularity of traditional cigarettes and the increasing prevalence of e-cigarette products among young Americans. This is expected to drive market growth.


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