U.S. E-cigarette And Vape Market Size, Share & Trends Report

U.S. E-cigarette And Vape Market Size, Share & Trends Analysis Report By Component, By Distribution Channel, By Product (Rechargeable, Disposable, Modular), And Segment Forecasts, 2019 - 2025

  • Published Date: Jun, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-2-68038-945-6
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2018
  • Number of Pages: 57

Industry Insights

The U.S. e-cigarette and vape market size was valued at USD 4.2 billion in 2018 and is expected to register a CAGR of 24.1% from 2019 to 2025. Growing concerns over the health risks associated with conventional tobacco cigarettes are expected to prompt adult smokers in the U.S. to switch to e-cigarettes, thereby driving product demand.

Electronic smoking and vaping products are gaining immense popularity in the country, particularly among millennials, because they are available in various options in terms of operation, delivery mode, and flavor. Increasing popularity of e-cigarettes is expected to open opportunities for innovation and the market is expected to evolve at a rapid pace as a result.

U.S. e-cigarette and vape market

Electronic smoking and vaping devices are battery-operated, releasing doses of vaporized nicotine that can be inhaled. While the effect is similar to regular tobacco smoking, there is no direct inhalation of smoke involved. As a result, e-cigarettes are considered as safe alternatives to conventional tobacco cigarettes.

E-cigarettes also offer various options for customization and as a result, demand for the same is growing significantly in the U.S. Continued investments and resulting innovations are likely to lead to development of cost-effective devices, thereby driving the market.

Several customers now prefer electronic cigarettes over conventional ones, particularly because the former are available in different flavors. Having realized the growth potential of the market, players are investing aggressively in developing innovative products with pleasant flavors as well as in enhancing battery life. On the down side, strict regulations enforced by local authorities across the U.S. are expected to hamper the market over the forecast period.

Product Insights

The rechargeable segment was valued at USD 1.9 billion in 2018 and is expected to emerge as the largest segment over the forecast period. The adoption of rechargeable e-cigarettes is increasing, particularly because of their low costs. Rechargeable product variants comprise an internal battery and can be considered as ideal for prolonged usage.

Modular devices are projected to emerge as the fastest growing segment over the forecast period. These can be refilled by users, which also allows them to regulate the power provided from the system’s batteries to the atomizer. The modular electronic cigarette design includes cartridge, cartomizer, and a battery. Customers in the U.S. prefer modular vaping devices because they generate high volumes of vapor and can also be customized in terms of power output, coils, and number of batteries.

Component Insights

Vape mod was valued at USD 2.1 billion in 2018 and is expected to emerge as the largest segment in the U.S. e-cigarette and vape market over the forecast period. Vape mod is a device that holds the battery to power the atomizer. These are widely adopted by users owing to the various features they offer, such as custom atomizer power delivery, variable wattage, and temperature control.

E-liquid is projected to emerge as the fastest growing segment over the forecast period. These are available in various flavors and users can select the flavor of their choice. Companies have started manufacturing e-liquids in bulk as part of their efforts to offer the products at competitive prices. They are available in different nicotine strengths, such as 24 mg, 12 mg, 6 mg, and 3 mg, and this is particularly lucrative for consumers in the U.S.

Distribution Channel Insights

Retail store is expected to emerge as the largest segment over the forecast period. Retail stores are also known as vape shops. They allow customers to try out various e-liquid flavors and test the different kinds of vaporizers available in the market. Hence, customers prefer visiting these stores before making a purchase. The popularity of vape shops is increasing across several states of the U.S. as a result.

U.S. e-cigarette and vape market

The online segment is anticipated to register the highest growth over the forecast period. Several vendors are opting for online platforms as their preferred distribution channel over retail stores owing to strict regulations pertaining to the distribution and sale of e-cigarettes. Various social media platforms are also being used to advertise and sell such electronic smoking devices. Buyers looking for products in bulk volumes, find the online platform particularly more convenient as compared to retail stores. Availability of a wide product variety on the online platform is also expected to drive the segment.

U.S. E-cigarette And Vape Market Share Insights

British American Tobacco; International Vapor Group; NicQuid; Altria Group, Inc.; R.J. Reynolds Vapor Company; Imperial Brands; Shenzhen KangerTech Technology Co., Ltd.; Japan Tobacco International; Philip Morris International Inc.; and Shenzhen IVPS Technology Co., Ltd. are some of the leading incumbents in the market. They have been focusing on strategic partnerships and acquisitions to boost their market shares.

Players are also investing aggressively in new product development, research and development, and product portfolio expansions in order to offer cost-effective products. For instance, Altria Group, Inc. invested USD 186 million in research and development in 2015, which increased to USD 203 million in 2016 and to USD 241 million in 2017.

Report Scope



Base year for estimation


Actual estimates/Historical data


Forecast period


Market representation

Revenue in USD Million and CAGR from 2019 to 2025

Country scope

The U.S.

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

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Segments Covered in the Report

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

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

    • Online

    • Retail Store

      • Convenience Stores

      • Drug Stores

      • News Stands

      • Tobacconist

      • Specialty E-cigarette Stores

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