An electronic cigarette is an electronic device that simulates tobacco smoking. E-cigarettes produce an aerosol by heating a liquid that usually contains nicotine, the addictive drug in regular cigarettes, flavors, and other chemicals that help to make the aerosol. The users inhale this aerosol into their lungs. E-cigarettes are available in various shapes, such as USB drives and pens. They are known by many other names such as e-cigs, e-hookahs, mods, vape pens, vapes, tank systems, and electronic nicotine delivery systems (ENDS). It consists of main components like the mouthpiece, atomizer, battery, sensor, and solution. E-cigarettes are likely less harmful than smoking tobacco as they contain fewer toxic chemicals, in lower concentrations than cigarette smoke. However, they also contain harmful chemicals that are not found in tobacco smoke. According to a study published by Insure Insights, the e-cigarette market is anticipated to grow at a CAGR of 23.9% during the forecast period.
Top Driver: Safer Alternative for Traditional Smoking and Cost Effectiveness
The growing awareness among the young population concerning the safer alternative for traditional cigarettes is driving the market. In addition, the variety of customization options offered by vendors and improvement has resulted in wide acceptance of e-cigarettes. Advancement in technology has developed high capacity e-cigarettes that produce large quantities of vapor, thereby resulting in growing preference. Moreover, ENDS has helped many smokers quit smoking consecutively, making e-cigarettes preferred effective alternative to smoking. Besides, the cost-effectiveness of disposable models of e-cigarettes and cartridge models, which are rechargeable and contain pre-filled cartridges, makes e-cigarettes reasonably affordable and are considered to be beneficial in the long-term compared to traditional cigarette smoking.
The Rechargeable Segment Accounted for the Largest Share
Among product the segment the market is segmented into disposable, rechargeable and modular devices. The rechargeable segment held the largest share in the market and is expected to be the fastest growing segment. Rechargeable devices are can be used repeatedly, for longer durations and can be switched with different cartridges. Moreover, these devices are quite economic and are widely adopted by people. On the basis of component, the market is segmented into Atomizer, Vape Mod, Cartomizer, E-liquid. The E-liquid segment is expected to be the fastest growing segment. On the basis of distribution channel, the market is segmented into online and retail.
Surge in the Number of Market Players to Benefit North America Market
The North American region is anticipated to gain highest shares. This owes to the factor that include, the market being fragmented, and the presence of key players such as Philip Morris International Inc., JUUL Labs, Inc., and R.J. Reynolds Vapor Company is anticipated to boost the industry. The young population has adopted the new vaping devices as a safe alternative to tobacco, which, in turn, is estimated to boost the adoption of these products. Europe is expected to gain considerable growth in the coming years. The growing popularity of vaping devices has boosted remarkably in recent years. Furthermore, health bodies in the region are approving e-cigarette and vape from vendors, such as British American Tobacco Plc’s Vype and Imperial Brands Plc’s Blu as a better alternative to tobacco smoking. However, factors such as lack of awareness in the technology and stringent regulations concerning vaping in many regions are anticipated to hinder the growth.
Players to Focus on E-cigarette Market
The global market is expected to stay fragmented with the increase in the number of new entrants in the coming years. Altria Group Inc., British American Tobacco plc, Hangsen, Healthier Choices Management Corp (Ruthless Vapor Corp.), Imperial Tobacco Group, Innokin, International Vapor Group, ITC Limited, J WELL France, Japan Tobacco, Inc., Kimree, Nicotek LLC, Njoy Inc, Philip Morris International among others could be at the forefront of the competition in the global market.
British American Tobacco plc. In July 2017, British American Tobacco plc., (BAT), which is an American British multinational cigarette and also tobacco manufacturing company, had acquired Reynolds American Inc. for an estimated amount of $49 billion. Furthermore, the acquisition favored the BAT to have a stable presence in increased growth emerging markets and higher profitability developed markets.
Philip Morris International Inc.: In June 2018, Philip Morris International Inc. (PMI), which is among the Swiss-domiciled multinational cigarette and tobacco manufacturing company, had entered strategic collaboration with the company Parallax Development Corp. (Parallax). Furthermore, the agreement focused on development and commercialization of effective alternative nicotine-delivery platforms that utilizes the maximum advantage of the most advanced technologies in pulmonary medicine.
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