E-cigarette Market Share rise at a Staggering CAGR of 13.19%.

Introduction

The e-cigarette, also known as vape, is a device that simulates tobacco smoking. It consists of an atomizer, a power source such as a battery, and a container for liquid, such as a cartridge or tank. As opposed to smoking, the user inhales vapor. Thus, the act of using an e-cigarette is commonly referred to as "vaping." The atomizer heats the e-liquid, transforming it into vapor, quickly condensing into an aerosol of tiny droplets, vapor, and air.

Market Dynamics

Cost-effective Solution Compared to Traditional Tobacco Drives the Global Market

In European and North American nations, one reason for switching to e-cigarettes or vapes is the perception that they are a healthier alternative to traditional cigarettes; they are also more cost-effective than traditional tobacco products. For example, single-use, disposable e-cigarettes range in price from USD 1 to USD 15 or more per unit. Rechargeable starter kits with multiple pods can range in price from USD 25 to USD 150 or more, whereas monthly liquid refill kits cost between USD 50 and USD 75. Moreover, it is worth noting that liquid nicotine cartridges are comparatively more cost-effective than traditional tobacco cigarettes.

Rising Product Launches Creates Tremendous Opportunities

The increasing number of e-cigarette and vape product launches is a significant contributor to the expansion of the e-cigarette market. Successful product launches are essential to the expansion of any market and the product lines of its participants. It also increases the players' market share and gives them a competitive advantage. For instance, in August 2021, RELX Technology promoted the launch of its next-generation premium e-cigarette in the United Arab Emirates and Kuwait.

Similarly, the partnership between market leaders Innokin Technology and Aquios Labs in May 2022 resulted in the release of the revolutionary water-based vaporizer Lota. Therefore, the introduction of new products by numerous market participants has a positive effect on expanding the electronic cigarette market. As a result, opportunities for market expansion are anticipated over the forecast period.

Regional Analysis

North America is the most significant global e-cigarette market shareholder and is anticipated to exhibit a CAGR of 13.94% during the forecast period. This region was instrumental in developing and innovating e-cigarette technology and products, laying the groundwork for market growth. The United States generates the most revenue for the global e-cigarette market in North America, with youth constituting the largest consumer segment. In 2021, the CDC estimated that 2.06 million middle and high school students in the United States used electronic cigarettes for at least 30 days, with 2.8% of middle school students and 11.3% of high school students.

In addition, electronic cigarette manufacturers in the United States offer various flavors and frequently introduce new ones. There are currently over 15,500 e-cigarette flavors available in the United States. According to the National Youth Tobacco Survey (NYTS), approximately 85 percent of e-cigarette users used flavored products in 2021. In addition, the perception that vaping and electronic cigarettes are trendy is growing. This is driving the growth of the regional market during the forecast period.

Europe is estimated to exhibit a CAGR of 12.76% over the forecast period. Regional health organizations' endorsement of e-cigarettes and vaping as superior alternatives to tobacco smoking, such as British American Tobacco Plc's Vype and Imperial Brands Plc's Blu, is expected to stimulate market growth in Europe. In addition, the e-cigarette market in the European region is primarily boosted by the rising number of smokers desiring to quit and favorable government regulations. The Public Health England (PHE) states that vaping is 95% less harmful than smoking tobacco. According to the Opinions and Lifestyle Survey published by the Office for National Statistics in 2019, 5.7% of survey respondents stated that they currently use an e-cigarette (vaped); this equates to nearly three million vapers in the population of the United Kingdom, with over 50% of vapers using their e-cigarette as a means to quit smoking.

Key Highlights

• The global e-cigarette market size was valued at USD 71 billion in 2022. It is estimated to reach USD 81.46 billion by 2031, growing at a CAGR of 13.19% during the forecast period (2023–2031).
• Based on product type, the global e-cigarette market is divided into completely disposable models, rechargeable but disposable cartomizers, and personalized vaporizers. The rechargeable but disposable cartomizer segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 11.72% throughout the forecast period.
• Based on battery mode, the global e-cigarette market is bifurcated into manual e-cigarette and automatic e-cigarette. The automatic e-cigarette segment dominates the global market and is projected to exhibit a CAGR of 13.82% over the forecast period.
• Based on distribution channels, the global e-cigarette market is divided into offline retail and online retail segments. The offline retail segment is the largest revenue contributor and is expected to exhibit a CAGR of 11.08% throughout the forecast period.
• North America is the most significant global e-cigarette market shareholder and is anticipated to exhibit a CAGR of 13.94% during the forecast period.

Competitive Players

1. British American Tobacco PLC
2. Philip Morris International Inc.
3. J Well France
4. Japan Tobacco Inc.
5. Ritchy Group Limited
6. NJOY INC.
7. Imperial Brands PLC
8. ASPIRE
9. Innokin Technology
10. JUUL Labs Inc.
11. JWEI Group

Recent Developments

• September 2023- Aroma King, a renowned Polish vape brand, introduced its newest disposable product, the Cosmic Max, expanding its presence in Europe.
• March 2023- Altria announced a USD 2.75 billion investment in rival e-cigarette startup NJOY. The Virginia company announced that the Marlboro manufacturer acquires full possession of NJOY's e-vapor product portfolio, including its pod-based e-vapor product ACE.

Segmentation

1. By Product Type
   1. Completely Disposable Model
   2. Rechargeable but Disposable Cartomizer
   3. Personalized Vaporizer
2. By Battery Mode
   1. Manual E-cigarette
   2. Automatic E-cigarette
3. By Distribution Channel
   1. Offline Retail
   2. Online Retail