In 2019, the global e-cigarette and vape industry was worth USD 12.41 billion, and it is forecast to grow at a revenue-based CAGR of 23.8 percent from 2021 to 2027. Due to rising millennial product demand, the market is expected to gain momentum over the forecast period. The development of a range of e-cigarette products is projected to improve product acceptance even further.
Since 2014, the market has evolved as devices have become more efficient in terms of battery life and flavor options, attracting a large number of customers. The cost-effectiveness of these devices has boosted consumer adoption ever further.
In the coming years, the rising cost of regular tobacco is expected to increase demand for e-cigarettes and vape products. The demand is being guided by an increasing level of consciousness among the young population as a result of numerous medical researches identifying e-cigarettes as a better alternative to conventional cigarettes. Furthermore, the market is expected to expand over the forecast period due to vendor customization options and continuous growth in new product growth. High-capacity e-cigarettes that emit massive amounts of vapor have been developed as a result of technological advances, and vapor enthusiasts are increasingly preferring them.
Vaping has helped a large number of smokers quit smoking thereby, making e-cigarettes an effective alternative to smoking. The strict regulations levied by local authorities across the U.S., India, and Germany, among other countries have however restrained the growth of the market. Several countries have outlawed the distribution and selling of vapor materials, resulting in lower prices. Furthermore, strict trade rules have made importing vaping products for personal use impossible.
To fight anti-vaping laws and to regulate the market, the vaping industry has founded organizations such as the American Medical Association (AMA), Consumer Advocates for Smoke-Free Alternatives Association, and the Food and Drug Administration (FDA).
Product Insights
The e-cigarette and vape industry is divided into disposable, rechargeable, and modular devices based on product. In 2019, the rechargeable segment provided the most sales. E-cigarettes have evolved over time, becoming smaller and more secure. By changing the e-liquid cartridges in rechargeable devices, they can be used for longer periods of time. Furthermore, these devices are comparatively cheap, which is supposed to improve their acceptance.
Over the projected timeframe, modular devices are predicted to be the fastest-growing product category.
These devices offer customization options that help users 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. Vendors are also coming up with a variety of device configurations and price points, allowing customers to get their desired device at a reasonable price.
Distribution Channel Insights
The industry is split into two groups based on sales channels: online and retail stores. Convenience shops, grocery stores, newsstands, tobacconists, and specialist e-cigarette stores are all part of the retail market. Initially, e-cigarettes is available in local stores including petrol stations and vape shops. The shop assisted customers in selecting from a broad range of tablets and e-liquid. Furthermore, vape shops allowed customers to try out the device and e-liquid before making a purchase.
In late 2015, companies began offering e-cigarettes on the internet. People are purchasing e-cigarettes and vaping online because of the ease, affordable prices, and access to a broader range of items provided through online marketplaces. When compared to department shops, websites have a much larger selection of merchandise. Furthermore, sellers have their own websites where customers can buy goods at a reduced cost.
Component Insights
In 2019, the vape mod segment led the industry, and this trend is projected to continue over the forecast period. The proliferation of different types of vape mods, such as restricted and uncontrolled (box) mods, has resulted in a rise in e-cigarette purchases. Mod sales have increased as a result of the emergence of vaping competitions, especially box mods. Regulated mods are mainly intended for regular use.