E-cigarette And Vape Market Size, Share & Trends Analysis Report By Distribution Channel (Online, Retail), By Product, By Component, By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global e-cigarette and vape market size was valued at USD 10,261.8 million in 2018 and is expected to grow at a CAGR of 24.9% from 2019 to 2025. The industry is expected to gain traction over the forecast period. The increasing penetration of these products among millennials is expected to boost the industry growth over the forecast period. Moreover, the availability of a variety of e-cigarette options is further anticipated to increase their adoption.

The e-cigarette is a battery-operated device that is considered as a safe alternative to smoking cigarettes. The industry is non-uniformly regulated as the effects of the devices are under review. Large tobacco companies have flourished by introducing these devices through various brands that cater to different requirements, thereby enhancing the quality and level of customization of the products.

The market has evolved since 2014 as the devices have become more efficient in terms of battery life and the number of flavors available in the market. Furthermore, various types of flavors are available in the industry, which attracts a large number of customers as they emit a pleasant smell when used in an e-cigarette. In addition to this, the cost-effectiveness of these devices has further enhanced customer adoption.

The market is driven by growing awareness among the young population owing to various studies that have been carried out by medical associations that term e-cigarettes as being safer than traditional cigarettes. Moreover, the customization options offered by vendors and continuous improvement toward new product development is expected to drive the market growth over the forecast period.

The strict regulations levied by local authorities across various countries such as the U.S. and Germany among others has restrained the market growth. Multiple countries have banned the distribution and sale of vapor products, which has, in turn, led to lower sales. Furthermore, stringent trading laws have made it difficult to import vaping devices for personal consumption. The vape industry has formed various associations to combat the policies against vaping products and to regularize the industry.

Product Insights

The rechargeable segment generated the highest revenue in 2018 and was valued at USD 4,407.0 million. E-cigarette devices have evolved over the years, becoming smaller and safer. Rechargeable devices can be used for a longer duration by switching the cartridges containing e-liquid. Moreover, these devices cost fairly less, which is expected to increase their adoption.

Modular devices are estimated to emerge as the fastest-growing product segment over the next six years. These devices offer customization options that help users to combine different parts to alter the flavor and the amount of vapor generated from the device. Technologies such as pod devices have increased the sale of vaping devices over the forecast period.

Component Insights

The vape mod segment dominated the market and is expected to maintain its dominance over the forecast period. The availability of vape mods in various designs has led to an increase in the purchase of e-cigarettes. Vape mods are available in multiple types, such as regulated vape mods and unregulated (box) MODs. The introduction of vaping competitions has encouraged the sale of MODs, especially box MODs. Regulated mods are mostly meant for general usage.

Various types of flavors such as fruit, tobacco, dessert, and mixed, among others, have encouraged the growth of e-liquid segment. Furthermore, the segment is expected to significantly drive the market owing to the Do-it-Yourself (DIY) trend where users develop their own e-liquid by combining flavors.

Distribution Channel Insights

On the basis of distribution channel, the market is segmented into online and retail store. E-cigarettes were initially sold in retail outlets such as gas stations and vape shops. The store helped users to choose from a wide variety of devices and e-liquid. Moreover, vape shops enabled users to test the device and e-liquid before making the purchase decision.

Companies started selling e-cigarettes online in late 2015. The online platform is the fastest-growing platform for the sale of these products and is expected to register a growth of 29.9% from 2017 to 2025. Websites offer a large variety of products as compared to retail stores. Moreover, sellers have their own websites from where users can purchase the products at a low price.

Regional Insights

North America emerged as the largest regional market in 2018 and was valued at USD 4,599.1 million. The presence of key industry players such as Philip Morris International Inc. and R.J. Reynolds Vapor Company is anticipated to drive the growth over the next six years. Furthermore, the young population has largely adopted vaping devices as a safe alternative to tobacco, which, in turn, is estimated to boost the adoption of these products.

The growing popularity of vaping devices in the region has propelled the industry in recent years. Owing to a lack of awareness of the technology, regulations concerning vaping are stringent in many regions across the world, thus hampering their sale. However, the adoption of these devices is expected to grow over the forecast period.

E-cigarette and Vape Market Share Insights

Key players in the industry include Altria Group, Inc., British American Tobacco, Imperial Brands, International Vapor Group, Japan Tobacco, International, NicQuid, JUUL Labs, Inc., Philip Morris International Inc., R.J. Reynolds Vapor Company, Nicquid, Shenzhen IVPS Technology Co., Ltd., and Shenzhen KangerTech Technology Co., Ltd., among others.

The industry is characterized by low entry barriers for new players since new players can establish their business with minimal investments. Competition among the players is high and large companies acquire smaller companies to increase customer base and geographical reach. Companies invest actively for the continuous improvement of products and the development of new products.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global e-cigarette and vape market report based on product, component, distribution channel, and region.

• Product Outlook (Revenue, USD Million; 2014 - 2025)

  • Disposable

  • Rechargeable

  • Modular Devices

• Component Outlook (Revenue, USD Million; 2014 - 2025)

  • Atomizer

  • Vape Mod

  • Cartomizer

  • E-liquid

• Distribution Channel Outlook (Revenue, USD Million; 2014 - 2025)

  • Online

  • Retail

    • Convenience Store

    • Drug Store

    • Newsstand

    • Tobacconist Store

    • Specialty E-cigarette Store

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

  • MEA