E-Cigarette Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Global E-Cigarette Market is segmented By Product Type (Vape Mod, T-Vapor, Rechargeable, Disposable, Vaporizer, Cig-a-like), By Composition Type (Nicotine, Non-nicotine), By Distribution Channel (Tobacconist, Online, Vape Shops, Hypermarket/Supermarket), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

E-Cigarette Market Overview

E-Cigarette Market is expected to grow at a CAGR of 9% during the forecast period 2024-2031.

The E-Cigarette is the electronic medium or device that helps in smoking tobacco. The device has a battery, atomizer, and a container to store the tobacco. Thus deice enables the smoker to inhale the “vaping” using this device instead of traditional smoking. The e-cigarette has a heating element that atomizes a liquid solution called e-liquid by pressing a button on the device. The e-liquid is a mixture of food-grade flavoring, water, vegetable glycerin (VG), propylene glycol (PG), a choice of nicotine levels, and cannabis. These e-cigarettes are reusable and have fewer health effects as compare to traditional smoking.

E-Cigarette Market Scope

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E-Cigarette Market Dynamics

The market is driven by the rising demand for e-cigarettes with growing health awareness, a surge in the number of vape shops and stores with advanced technology devices adoption. The E-Cigarette is being consumed mostly by the middle-aged and high educated person who has good economic conditions. The Truth Initiative Organization study in 2019 found that around 43% of middle and high school students have been used e-cigarettes for smoking. Thus, e-cigarette consumption is increasing at 7.6% in 2018 compared to 5.2% in 2017. According to Japan Tobacco International (JTI), in 2014 e-cigarette market was valued at USD 6.8 billion in 2014 and increased to around USD 15.6 billion in 2018.

There is a rise in the launch of new innovative technology e-cigarettes with the highest battery power for atomizing and smoking. Furthermore, many companies are planning to invest in e-cigarettes in developing countries. For instance, on 30th Jan 2019, Juul, the leading E-cigarette company, has planned to launch its products in India.

E-Cigarette Market Segment Analysis

The global E-Cigarette market is segmented based on product type, composition, distribution channel, and region.

The global E-Cigarette market is bifurcated into Vape Mod, T-Vapor, Rechargeable, Disposable, Vaporizer, and Cig-a-like in terms of product type. Among these, Vape Mod has the highest share due to an increase in the demand for smokers' socio-economic distribution with e-cigarettes. As per the Action on Smoking & Health (ASH), e-cigarettes have the highest prevalence in Great Britain, which was increased in 2012 from 700000 to 3.6 million people in 2019. This Vape mod has several e-cigarette users.

Similarly, T-Vapor, rechargeable, disposable, vaporizer, and cig-a-like are also growing faster due to the increase in smokers. According to the Tobacco Atlas Organization, in 2018, around 942 million men and 175 million women with different age groups are being addicted to smoking worldwide.

Depending on the composition type, the global e-cigarette market is divided into Nicotine and Non-Nicotine. Among these, nicotine-based has the highest market share in 2019, owing to increased tobacco smokers' prevalence followed by leading players. For instance, in 2015, the leading e-cigarette manufacturer has launched a 5% nicotine-based pod for smokers, whereas in 2018, the Company reduced the nicotine concentration to 3%. This the company has made both e-cigarettes available in both concentrations in 3% and 5%.

The global E-Cigarette is segmented into Tobacconist, Online, Vape Shops, and Hypermarket/Supermarket depending on the distribution channel. Among these, the Tobacconist segment had the highest market share in 2019. This growth is anticipated due rise in the tobacconist due to increasing demand for people from the middle-income and developing regions like China, India, and Brazil.  

Similarly, the online, Vape shops, and hypermarket/supermarket segment have the highest market share due to increased e-cigarette trends with a surge in the online, Vape shops and hypermarket and supermarket shops sales. According to the Truth Initiative Organization study, the Vape shops have 19% prevalence, hypermarket/supermarket with 53% whereas online and other retail channels have a prevalence of around 28% consumption rate.

E-Cigarette Market Geographical Share

By region, the global E-Cigarette market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, The North American region is dominated by E-Cigarette market growth due to the growing demand for smokers with high and middle-class families. Furthermore, the increasing advanced technology adoption for the E-cigarettes with rising global demand in this region shall boost the E-Cigarette demand over the forecasted period followed by Europe. According to the Tobacco Control Research Group and the University of BATH, in the United States, the E-cigarette market was valued at USD 2.6 billion in 2014 to USD 6.8 billion, whereas in Europe market for E-cigarette was estimated to around USD 5.2 billion. Furthermore, the e-cigarette has the highest taxation rates owing to a rise in the adoption of e-cigarettes among people. According to the Russian Treasury reports, revenue from taxes on liquids for e-cigarettes increased from 85 million rubles in 2017 to 152 million rubles in 2018.

The Asia Pacific is also the fastest-growing market for e-cigarette, with a value of nearly USD 1.4 billion as per a study report by the Tobacco Control Research Group and the University of BATH in 2018.

E-Cigarette Market Companies and Competitive Landscape

The global E-Cigarette market is highly competitive with the presence of several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. Japan Tobacco Inc., Imperial Brands PLC, NJOY LLC, Turning Point Brands, Vapor Hub International, FIN Branding Group, Shenzhen iSmoka Electronics Co., Shenzhen IVPS Technology Corporation Ltd., Innokin Technology Co. Ltd, JUUL Labs Inc., Philip Morris International, British American Tobacco are the leading market players with significant market share.

Companies are entering into collaborations, acquisitions, mergers, and licensing for increasing their market penetration. For instance, on 20th December 2018, Altria, the leading tobacco provider company, purchased around 35% stake from JUUL’s e-cigarette company at around USD 38 billion.