E-Cigarette Market worth over $9bn by 2026
Published Date: January 20, 2020 Authors: Ankita Bhutani, Saloni Gankar
E-Cigarette Market size is set to exceed USD 9 billion by 2026, according to a new research report by Global Market Insights, Inc.
To reduce the harm caused by tobacco cigarettes, smokers are adopting e-cigarettes, which deliver nicotine without toxic chemicals, such as tar, to the lungs. Moreover, several health experts in the UK are also urging smokers to switch to electronic cigarettes to avoid the after-effects of smoking.
Rapid adoption of e-cigarettes in the U.S. and Europe is encouraging manufacturers to develop innovative products
Increasing demand for e-cigarettes is forcing manufacturers to develop advanced technology, such as vapor cigarettes, to have an edge over their competitors. The companies are investing in R&D to offer innovative solutions with new flavors, compact design, and efficient battery backup to remain competitive in the market. Additionally, companies are adopting various strategies to expand their business offerings.
For instance, in April 2019, Philip Morris International Inc., a tobacco manufacturing company based in the U.S. announced the launch of Reviti insurance plan for providing premiums to tobacco users willing to quit traditional tobacco products. The plan will offer around 50% discount to customers opting for iQOS e-cigarette offered by the company.
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Benefit of ultra-lightweight with high quality and safety increasing demand for disposable e-cigarette
The disposable e-cigarette market will witness steady demand during the forecast timespan. The disposable cigarettes are pre-filled and ready-to-use device, offering convenience and portability to smokers. These devices are small, allowing users to carry them anywhere and can be purchased in distinct flavors and various nicotine strengths, providing a satisfying smoking experience to users compared to traditional cigarettes.
Browse key industry insights spread across 220 pages with 228 market data tables and 22 figures & charts from the report, “E-Cigarette Market Size By Composition (Nicotine, Non-Nicotine), By Product (Disposable, Modular, Rechargeable), By Type (Automatic, Manual), By Distribution Channel (Hypermarket/Supermarket, Online, Vape Shops/Tobacconist), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026,” in detail along with the table of contents:
Benefits of controlling vapor production and safety through sealed battery reducing possibility of liquid leakage are accelerating the manual e-cigarette market demand
Manual e-cigarette segment will register moderate gains till 2026. These cigarettes can provide control over vapor production. The batteries in the manual e- cigarettes are equipped with a small button that needs to be pressed for activating the heating element and hold down to inhale.
Several companies in the market are offering devices that are equipped with a safety feature to prevent the battery from overheating or misfiring. For instance, White Cloud Electronic Cigarettes is offering manual e-cigarette powered by lithium polymer batteries, making them the safer option compared to advanced personal vaporizers.
Growing penetration of vape shops in several countries allowing users to conveniently purchase e-cigarette
Vape shops accounts for significant share in the electronic cigarette market. These shops allow users to choose from a wide variety of e-liquid and devices. It also enables users to test the device before making the purchase decision.
Moreover, the increasing number of vape shops in several countries will help consumers to purchase these devices in-store. However, the availability of a large variety of products and low cost in online websites compared to retail stores is encouraging consumers to purchase e-cigarettes online.
Established players investing in development of advanced products will spur the market demand in North America
North America e-cigarette market accounted for around 25% revenue share in 2019 and is anticipated to grow exponentially through 2026. The growth can be credited to increasing government push toward banning tobacco products is encouraging consumers to adopt these devices as an alternative to traditional cigarettes.
E-cigarette companies in the region, such as Altria Group, Inc., JUUL Labs, Inc, and Philip Morris International Inc., account for significant market share. These companies are highly investing in R&D, marketing, and distribution strategies owing to increase in the adoption of e-cigarettes over conventional smoking methods.
For instance, in July 2019, Turning Point Brands, Inc., a tobacco and vaping manufacturer based in the U.S. invested USD 3 million to acquire a 30% stake in ReCreation Marketing, a Canadian distribution company. Through this move, the company will expand its e-liquid vape technology in the Canadian market. Such investments by players in the devices will influence the industry demand across the region.
Major companies operating in the electronic cigarette market include Turning Point Brands Inc., JUUL Labs, Inc, Reynolds American Inc, British American Tobacco (BAT), NicQuid, LLC, Healthier Choices Management Corp., Njoy Inc, Japan Tobacco Inc, Nicotek, LLC, Philip Morris International, Imperial Brands PLC, MCIG Inc, and Shenzhen IVPS Technology Co., Ltd.
The competition among the players operating in the market is high due to large number of players and high industry growth rate. These players are implementing strategies, such as partnerships & collaborations and new product developments in the market.
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