E-CIGARETTE MARKET - GROWTH, TRENDS AND FORECAST
Global E-cigarette Market is Segmented by Product type (Completely Disposable Model, Rechargeable but Disposable Cartomizer, Personalized Vaporizer), Battery Mode (Automatic E-cigarette, Manual E-cigarette), and by Geography.
Market Overview
Global e-cigarette is projected to grow at a CAGR of 8.28% over the forecast period (2020-2025).
With the increasing trend toward e-commerce, online retailing is also emerging as a strong distribution channel in recent times and is expected to grow further, thereby increasing the value of distribution channels. Many ex-smokers need a high level of nicotine concentration, it is likely that the pods will typically come with the more potent nicotine salt (nic-salt) e-liquids, which may increase the peak concentration of nicotine in the blood and allow users to achieve more satisfaction and would become a popular alternative to the standard e-liquid.
Cost-effectiveness of disposable models of e-cigarettes, as well as cartridge models, which are rechargeable and contain pre-filled cartridges, are reasonably affordable and are considered to be beneficial in the long-term compared to traditional cigarette smoking. This remains a key driver for the e-cigarette market
Scope of the Report
Electronic cigarette (e-cigarette) market is segmented based on product type, battery mode, and by geography. On the basis of product type, e-cigarette market is segmented as completely disposable model, rechargeable but disposable cartomizer, and personalized vaporizer, whereas on the basis of battery mode, the market is segmented in to automatic e-cigarette and manual e-cigarette.
Key Market Trends
Rise in Demand For Flavored E-Cigarattes
The rise in e-cigarette use is likely because of the recent popularity of e-cigarettes offerings in a wide variety of flavors and in different shapes like a USB flash drive, such as JUUL. Evolving consumer taste is driving diversity in e-liquid flavors across the world, with tobacco, botanical, and fruit flavors being the most popular. These products can be used discreetly, have high nicotine content, and come in flavors that are highly appealing to the youth. Compared to adults, a larger proportion of adolescents prefer fruit, alcohol, and other-flavored e-liquids. In addition to the vast selection available online, thousands of vape shops have now opened that allow consumers to sample and purchase refill liquids, including a combination of flavors chosen by the user and in varying levels of nicotine. Flavors range from simplistic menthol and cinnamon, and sweet varieties, such as chocolate and vanilla, to complex flavors that are formed by mixing different varieties in fixed compositions. Customization in flavors is also a recently evolving trend, in many markets. Vaping company, Kwit Stick, introduced a new micro USB-recharging vaporizing pen, that comes with a starter kit containing the pen device, charging cable with all four flavor pods, and a syringe bottle to aid with refills. High street selling flavors, such as tiramisu and champagne, are also helping the market to grow significantly
Europe to Hold A Significant Market Share
Europe is the largest market for e-cigarettes in the world, led by countries, like the United Kingdom, Germany, France, and Russia. The penetration of these products is particularly high in the United Kingdom and France, due to a high demand from users in the age group of 30-44 years. Vaping is taking center stage and providing the same level of satisfaction, causing e-cigarettes to provide intense rivalry. Tobacco companies, such as UK British American Tobacco PLC (BAT) and Imperial PLC, are investing billions of dollars into research, development, and marketing cigarette alternatives, owing to the decline in the popularity of traditional smoking methods. France is estimated to be the world’s largest electronic cigarette market. According to the French Office for Smoking Prevention, the number of e-cigarette shops in France is estimated to reach over 500 by the end of 2020 (141 shops in 2013). Also, e-cigarettes may be brought to market either as medicines or as consumer products. Those seeking medicines approval (either because they make cessation/health claims, or contain nicotine above the threshold of 20 mg/mL) must obtain marketing authorization under the standard drug licensing process. With such positive prospects budding all over the region, Europe is estimated to be, both, the largest and also the fastest-growing region for the e-cigarettes market, globally.