E-Cigarette Market size worth over $9 Bn by 2026
Published Date: January 20, 2020 Authors: Ankita Bhutani, Saloni Gankar
E-Cigarette Market size is set to surpass USD 9 billion by 2026, according to a new research report by Global Market Insights, Inc.
The increasing number of deaths owing to lung cancer, heart diseases, and respiratory ailments caused by smoking tobacco products is one of the major factors encouraging manufacturers to develop innovative products such as e-cigarettes. According to Centers for Disease Control and Prevention (CDC), tobacco smoking is responsible for over 480,000 deaths per year in the U.S. including more than 40,000 deaths resulting from exposure to secondhand smoke. Also, it is estimated that more than 8 million people a year will die from diseases related to tobacco use by 2030.
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 e-cigarettes to avoid the after-effects of smoking. For instance, Public Health England (PHE) stated that e-cigarettes are around 95% less harmful than tobacco smoking and concluded that these devices have the potential to help people quit smoking. With the perception of e-cigarettes being less harmful than other substitutes, the e-cigarette market demand will increase.
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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. Moreover, the rise in the number of vape users is resulting in expansion of the e-cigarette market.
Benefit of ultra-lightweight with high quality and safety increasing demand for disposable e-cigarette
The disposable e-cigarette market is poised to showcase steady demand through 2026. The cigarette is a 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.
Several brands are providing disposable e-cigarettes with a variety of flavors to users. For instance, Fuma International, LLC, a vaporizer company based in the U.S. is offering a posh disposable kit, which delivers authentic vaping experience through eight flavor options and 60 mg nicotine salt e-liquid. However, less availability of flavors and high cost compared to rechargeable units limit its adoption among vape users.
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
Manual e-cigarette has the ability to provide control over vapor production. These batteries are equipped with a small button that needs to be pressed for activating the heating element and hold down to inhale. Several companies are offering devices that are equipped with a safety feature to prevent the battery from overheating or misfiring. The small button on the device is pressed five times and the light on the button flashes three times to indicate that the battery has been activated.
Moreover, pressing the button five times until the light flashes three times deactivates the heating element. Such features help smokers to inhale while keeping the button pressed down until they have inhaled the desired amount of vapor.
Growing penetration of vape shops in several countries allowing users to conveniently purchase e-cigarette
Vape shops is likely to account for high share in the e-cigarette market by 2026. 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. However, the increasing number of vape shops in several countries will help consumers to purchase these devices in-store. 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
In 2019, the North America e-cigarette market size captured around 25% share. E-cigarette companies, such as Altria Group, Inc., JUUL Labs, Inc, and Philip Morris International Inc., hold 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 drive the industry demand in the region. Additionally, the increasing government push toward banning tobacco products in the region is encouraging consumers to adopt these devices as an alternative to traditional cigarettes.
Major companies operating in the e-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 is high due to a 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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