|Status : Published||Published On : May, 2019||Report Code : VRSME9037||Industry : Semiconductor & Electronics||Available Format :||Page : 216|
The global e-cigarette market is expected to grow at a CAGR of 21.4% during the forecast period with its market size predicted to reach USD 53.4 billion by 2024. The global e-cigarette market is anticipated to be driven by the factors increasing health concerns over the usage of conventional tobacco-based cigarettes, vaping without ash or smoke, technological advancements leading to product innovation, increasing adoption through direct sales. Different types of product such as disposable and rechargeable cig-a-like are the major contributor to the e-cigarette market size, globally.
An electronic cigarette is enabled with the help of battery that further discharges nicotine, or non-nicotine solutions dosages in a vaporized form, that can be easily inhaled by the consumer. It does not create smoke although enables the user to get a similar manner of sensation as inhaled from the smoke of tobacco. This offers smokers a better alternative to avoid smoking and its ill effects.
Insight by Product
The cig-a-like, vaporizer and vape mode are the products offered by e-cigarette manufacturers. Among all these products, cig-a-like holds the largest share in the global market. The category accounted for almost half of the revenue generated by the market players in 2018. The comparatively lower cost of these e-cigarettes makes them a popular choice among consumers. The cig-a-like e-cigarette market is further segmented into disposable and rechargeable cig-a-like, of which disposable category is more popular, worldwide. The vaporizer market is categorized into an open tank and closed system vaporizer.
Significant growth in the demand for the vape mod has been observed over the last five years which is anticipated to remain the highest among all e-cigarette products during the forecast period. The research and development leading to the product innovation have led to the development of highly differentiated vape mod, thus creating huge traction among consumers.
Insight by Distribution Channel
Based on distribution channel, the market is subdivided into supermarkets, online, vape shops, and tobacconists. In 2018, the majority of e-cigarettes were distributed through vape shops and the trend is anticipated to remain the same during the forecast period. However, with the increasing number of supermarkets and the emergence of e-commerce, significant portion of sales will be through supermarkets and online sales channels.
E-Cigarette Aftermarket Insights
The aftermarket for e-cigarette holds immense opportunities for the industry players, with its market anticipated to observe the higher growth than the actual e-cigarette market. Of the different aftermarket products, the majority of sales are of refill and it is anticipated to remain during the forecast period.
Increasing awareness of the hazardous effects on health due to smoking and changing lifestyle and preferences, technological advancements leading to product innovation, and increasing adoption through direct sales are the key factors attributing towards growth in the e-cigarette market. Electronic cigarette is less harmful than regular cigarette, which has resulted in the development of alternatives that have helped consumers quit traditional cigarettes. Cancer caused by smoking is one of the major concerns affecting people, globally. Furthermore, e-cigarettes eliminate the risk of cancer and changing lifestyle of consumers thus helps in the growth of the e-cigarette market. There are several vendors which are regularly making advances in the technology thus making the consumers to shift towards the market.
Government rules and regulations on manufacturing of e-cigarette and increasing health concerns and mishappening are the key hurdles faced by e-cigarette market players, globally. Government regulations make the e-cigarettes more costly despite using cost-efficient techniques and making it tough to reach a large number of consumers in the market.
Globally industry players are fueling the growth of the e-cigarette market by providing new and regional flavors for the e-cigarettes. The major players are collaborating with high-end tobacco manufacturers to form monopoly. This gives them an edge to get ahead of the competition.
Geographically, North America dominates the e-cigarette market due to earlier advancements in the technology of this segment, and high disposable income of citizens of countries such as the U.S. and Canada. Moreover, the Asia-Pacific is anticipated to witness the fastest growth during the forecast period due to the huge population of young generation and their inclination towards the e-cigarettes.
Key players in e-cigarette are investing into research and development activities. Many prominent players are acquiring established business players to deliver next-generation products. For instance, in July 2017, British American Tobacco p.l.c. completed the acquisition of the remaining 57.8% of Reynolds American Inc. The prominent players operating in the e-cigarette market are Turning Point Brands, Inc. (International Vapor Group), British American Tobacco plc, VMR Products LLC, Altria Group Inc., Japan Tobacco Inc., Philip Morris International Inc., Imperial Brands plc, NJOY Inc., Vapor Hub International Inc., and FIN Branding Group LLC.
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