U.S. E-Cigarette Market

Industry Overview

The e-cigarette market in the United States is projected to experience a significant growth rate of 13.72% throughout the forecast period and by 2030, it is estimated that the market size will reach a substantial value of USD 65.59 billion from USD 34.49 billion in 2024.

An electronic cigarette or e-cigarette is a battery-operated smoking device. It emanates measured doses of vaporized nicotine or non-nicotine solutions when used. As smoking use among women has doubled from 1.4% to 2.9% now-a-days, these smoking devices offer a similar feeling of smoking a real cigarette and inhaling tobacco smoke. However, it does not cause any harm as real tobacco because it does not contain real tobacco. Instead, they contain nicotine, which typically comes from tobacco.

Electronic cigarettes are marketed as e-cigs, electronic nicotine delivery systems (ENDS), vape pens, and vaporizer cigarettes. A lot of people choose this alternative smoking solution to cut down or quit smoking.

An aerosol is produced by the e-cigarettes when the liquid containing nicotine inside it is heated. However different chemicals and flavors are also used to make the aerosol that users inhale into their lungs. These cigarettes offer ashless vaping, which is why it is socially acceptable and can be smoked in public places and are less harmful.

The size of the US e-cigarette industry mainly depends on the product varieties, which include rechargeable e-cigarettes, disposable e-cigarettes, cig-a-like devices, open tank vaporizers, closed system vaporizer, and more. All these segments are expected to grow in the projected period.

There are several factors that will influence the growth of the e-cigarette market in the United States during the forecast period such as growing consumer awareness, growing concern over health issues and smoking related diseases, widespread availability of e-cigarettes, technological developments, online product distribution, and more.

The change in preferences and lifestyle or people are also significant factors for the growth of the e-cigarette market in the US. In the emerging countries it is widely used due to increased affluence of people and is expected to grow even further during the forecast period.

Market Segmentation

Insight by Product

The e-cigarette manufacturers offer different types of products such as cig-a-like, vaporizer and vape modes. Based on these types, the e-cigarette market in the United States is categorized. Among all these categories, the cig-a-like segment is expected to hold a larger share of the market during the forecast period. This primarily due to the low cost of this type of electronic cigarettes.

On the other hand, the vape mode market in the US is supposed to grow at a higher rate during the forecast period.

As for the cig-a-like e-cigarette segment, it is further divided into disposable and rechargeable variants. Out of these two categories, the disposable category is more popular and is expected to remain the same in the forecast period.

Insight by Distribution Channel

The e-cigarette market in the United States is also divided according to the distribution channel into supermarkets, online, vape shops, and tobacconists. The majority of e-cigarettes are distributed through vape shops and therefore it is the larger contributor and will remain the same during the projected period.

However, the rise in the number of supermarkets and the growing popularity and expansion of e-commerce facilitates sales in the supermarkets through online sales channels.

Insight by Model

Based on the different models of the e-cigarettes, the market is divided into disposable, rechargeable, and modular segments. Out of these segments, the modular segment is expected to dominate the market and also grow at a higher rate during the forecast period. This is due to the customization offered by it. In addition, these models offer greater vapor volume resulting in a higher user experience.

Insight by Flavor

The e-cigarette market in the Us is divided by different flavors as ell and includes tobacco, sweet, botanical, fruit, beverage, and more. Out of these segments, the tobacco segment dominates the market and will continue to do so in the forecast period. The primary reason behind this dominance is that this specific taste enhances the taste but at the same time reduces the common side effects of real tobacco. This specific feature makes this a preferred flavor for the beginners and is easier for them to continue using it instead of smoking real tobacco products.

U.S. E-Cigarette Market Report Coverage

Industry Dynamics

Industry Trends

The electronic cigarettes are increasingly gaining popularity and are considered to be a suitable and effective substitute of traditional cigarettes. This is because they offer several benefits such as no pollution, no smoke, no ash, and can help quit smoking.

Manufacturers are trying to come up with better and newer flavors to make them more acceptable and likeable among users. 

There is a growing popularity of e-cigarettes among the young generation.

The number of vape shops in the country has increased significantly resulting in higher penetration of e-cigarettes.

People prefer buying e-cigarettes from the offline retail channels because they get to choose from a wide range of products and also know about the different properties of each product.

Growth Drivers

The growth of the e-cigarette market in the United States is typically attributed to several factors, such as growing consumer awareness among people about these products and their benefits along with the growing concern of smoking related ailments such as cancer.

In addition, the easy availability of e-cigarettes has also facilitated the growth of the market in the US. There is also an extensive use of online distribution channels to sell these devices which allows people to buy them from the comfort of their homes. This specific feature as well as the technological advancements have helped the market to grow significantly.

During the projected period, it is also expected that there will be high incidences of smoking-related diseases which will encourage others to adopt and use e-cigarettes to quit smoking.

They can also reduce health-related issues. Most importantly, the electronic cigarettes can be smoked in public places. In addition, there are different flavors that make vaping or smoking electronic cigarettes more pleasurable. All these help these e-cigarettes to gain popularity among the users and increase their sales thereby pushing the market of e-cigarettes in the US forward.

Moreover, the ease in availability of the e-cigarettes than traditional cigarettes or tobacco products has made it a preferred choice among the young generation in the US which has also widened the prospects of the growth of the market of e-cigarettes in the US.

Challenges

The most significant setback to the growth of the e-cigarette market in the United States is that the Food and Drug Administration (FDA) have not included e-cigarettes as smoking termination products, in spite of aggressive lobbying by the major players in the industry. This is because the FDA considers them as tobacco products though they do not contain actual tobacco but contains nicotine that comes from tobacco.

The high cost of these electronic cigarettes is another major factor hindering widespread adoption by the masses and the growth of the market.

Opportunities

Higher focus on developing new technology by the major players in the market as well as higher invest by them in this technology to survive the competition has created new opportunities for the growth of the e-cigarette in the US.

Competitive Insight

The prominent players operating in the U.S. 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., Cigavette and FIN Branding Group LLC.

Recent Development by Key Players

Philip Morris' smokeless products are in focus ahead of 3Q earnings. The smoke-free product business has made up more than 35% of Philip Morris' net revenues in the second quarter. This number could continue to grow after the company upped its stake last year in Swedish Match, which produces wet snuff snus products and tobacco-free nicotine ZYN pouches. 

The U.S. E-Cigarette Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.

Segments Covered in the Report

• By Product
  • Cig-A-Like
    • Disposable
    • Rechargeable
  • Vaporizer
    • Open Tank
    • Closed System
  • Vape Mod
• By Distribution Channel
  • Vape Shops
  • Supermarkets
  • Online
  • Tobacconists

PRIMARY RESEARCH INTERVIEWS - BREAKDOWN

1.  Research Overview

        1.1.  The Report Offers
        1.2.  Market Coverage
            1.2.1.  By Product
            1.2.2.  By Distribution Channel
        1.3.  Research Phases
        1.4.  Limitations
        1.5.  Market Size Estimations and Forecast
            1.5.1.  Data Sources
                    1.5.1.1.  Primary Research
                    1.5.1.2.  Secondary Research
            1.5.2.  Methodology
                    1.5.2.1.  Data Exploration
                    1.5.2.2.  Forecast Parameters
                    1.5.2.3.  Data Validation
                    1.5.2.4.  Assumptions
            1.5.3.  Study Period & Data Reporting Unit

2.  Executive Summary

3.  Market Definition

        3.1.  By Product
            3.1.1.  Cig-A-Like
                    3.1.1.1.  Disposable
                    3.1.1.2.  Rechargeable
            3.1.2.  Vaporizer
                    3.1.2.1.  Open Tank
                    3.1.2.2.  Closed Systems
            3.1.3.  Vape Mod
        3.2.  By Distribution Channel
            3.2.1.  Vape Shops
            3.2.2.  Supermarkets
            3.2.3.  Online
            3.2.4.  Tobacconists

4.  Industry Overview

        4.1.  Industry Dynamics
            4.1.1.  Market Growth Drivers
            4.1.2.  Market Growth Restraints
            4.1.3.  Key Market Trends
            4.1.4.  Major Opportunities
        4.2.  Industry Ecosystem
            4.2.1.  Porter’s Five Forces Analysis
            4.2.2.  Strategic Development Analysis
            4.2.3.  Value Chain Analysis
        4.3.  Competitive Insight
            4.3.1.  Market Share Analysis of Key Players
            4.3.2.  Competitive Position of Industry Players
            4.3.3.  Market Attractive Analysis

5.  U.S. Market Estimate and Forecast

        5.1.  By Product
            5.1.1.  Cig-A-Like Market, by Type
            5.1.2.  Vaporizer Market, by Type
        5.2.  By Distribution Channel

6.  Company Profiles

        6.1.  Turning Point Brands, Inc. (International Vapor Group)
            6.1.1.  Snapshot
            6.1.2.  Overview
            6.1.3.  Offerings
            6.1.4.  Financial Insight
            6.1.5.  Recent Developments
        6.2.  British American Tobacco Plc
            6.2.1.  Snapshot
            6.2.2.  Overview
            6.2.3.  Offerings
            6.2.4.  Financial Insight
            6.2.5.  Recent Developments
        6.3.  VMR Products LLC
            6.3.1.  Snapshot
            6.3.2.  Overview
            6.3.3.  Offerings
            6.3.4.  Financial Insight
            6.3.5.  Recent Developments
        6.4.  Altria Group Inc.
            6.4.1.  Snapshot
            6.4.2.  Overview
            6.4.3.  Offerings
            6.4.4.  Financial Insight
            6.4.5.  Recent Developments
        6.5.  Japan Tobacco Inc.
            6.5.1.  Snapshot
            6.5.2.  Overview
            6.5.3.  Offerings
            6.5.4.  Financial Insight
            6.5.5.  Recent Developments
        6.6.  Philip Morris International Inc.
            6.6.1.  Snapshot
            6.6.2.  Overview
            6.6.3.  Offerings
            6.6.4.  Financial Insight
            6.6.5.  Recent Developments
        6.7.  Imperial Brands plc
            6.7.1.  Snapshot
            6.7.2.  Overview
            6.7.3.  Offerings
            6.7.4.  Financial Insight
            6.7.5.  Recent Developments
        6.8.  NJOY Inc.
            6.8.1.  Snapshot
            6.8.2.  Overview
            6.8.3.  Offerings
            6.8.4.  Financial Insight
            6.8.5.  Recent Developments
        6.9.  Cigavette
            6.9.1.  Snapshot
            6.9.2.  Overview
            6.9.3.  Offerings
            6.9.4.  Financial Insight
            6.9.5.  Recent Developments
        6.10.  FIN Branding Group LLC.
            6.10.1.  Snapshot
            6.10.2.  Overview
            6.10.3.  Offerings
            6.10.4.  Financial Insight
            6.10.5.  Recent Developments

Note: Financial insight and recent developments are subject to the availability of information in the secondary domain.

7.  Appendix

        7.1.  Exchange Rates
        7.2.  Abbreviations

List of Tables

Table 1 Sources
Table 2 Study Periods
Table 3 Data Reporting Unit
Table 4 U.S. E-Cigarette Market Size, by Product, 2018 - 2023 (USD Billion)
Table 5 U.S. E-Cigarette Market Size, by Product, 2025 - 2030 (USD Billion)
Table 6 U.S. E-Cigarette Market Size, by Distribution Channel, 2018 - 2023 (USD Billion)
Table 7 U.S. E-Cigarette Market Size, by Distribution Channel, 2025 - 2030 (USD Billion)
Table 8 Snapshot – Turning Point Brands, Inc.
Table 9 Snapshot – British American Tobacco Plc
Table 10 Snapshot – VMR Products LLC
Table 11 Snapshot – Altria Group Inc.
Table 12 Snapshot – Japan Tobacco Inc.
Table 13 Snapshot – Philip Morris International Inc.
Table 14 Snapshot – Imperial Brands plc
Table 15 Snapshot – NJOY Inc.
Table 16 Snapshot – Cigavette
Table 17 Snapshot – FIN Branding Group LLC.

List of Figures

Figure 1 Market Coverage
Figure 2 Research Phases
Figure 3 Secondary Offerings for Different Parameters
Figure 4 Methodology
Figure 5 Data Mining & Exploration
Figure 6 Data Triangulation
Figure 7 Assumptions for Market Estimation and Forecast
Figure 8 Market Synopsis
Figure 9 U.S. E-Cigarette Market - Growth Drivers and Restraints
Figure 10 Competitive Benchmark
Figure 11 U.S. E-Cigarette Market Size, by Product, 2018 - 2030 (USD Billion)
Figure 12 U.S. E-Cigarette Market Size, by Distribution Channel, 2018 - 2030 (USD Billion)