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THE GLOBAL VAPE MARKET SIZE WILL CROSS USD 61 BILLION, GROWING AT A CAGR OF OVER 14% 2025.
E-LIQUIDS WILL HAVE THE HIGHEST MARKET SHARE
This market research report covers vape market size, forecast, share, industry trends, growth drivers, and vendor analysis. The study includes insights by E-vapor (E-liquids, open tanks systems, closed tank systems, cig-a-likes, and consumables), Heat-not-burn (HnB) Tobacco ((HnB Devices (Direct and Indirect Heating Devices, Infused/Hybrid Systems) and HnB Consumables (Tobacco Sticks and tobacco capsules & cartridges)), Distribution (retail and online stores), and Geography (North America, APAC, MEA, Europe, and Latin America)
The vape market is witnessing a shift from smoking to vaping. Veteran vapors and heavy smokers have started to switch to bulky vapor mod in the cigaratte and vape market. It is expected that the vapor products market would be driven further by VTMs and personal vaporizers during the forecast period. Vaping is substantially cost-effective in the long run than traditional tobacco cigarettes and disposables/rechargeable e-cigarettes, which is expected to affect the industry during the forecast period.
Another important reason for the popularity of vapor products is the availability of different flavors in the industry. Innovation and new product development propel the growth of the industry. E-liquids with flavors of fruits, beverages, and sweets have been gaining large share over traditional tobacco flavor. Further, many countries, such as Australia and Canada have banned nicotine-loaded vapor products. Thus, e-liquids with a variety of flavors containing zero nicotine have become popular among vapers.
- APAC is likely to continue its dominance during the forecast period; however, North America is expected to catch up on the pace and take over the market.
- Constant product development and new features are keys to achieving high sales growth
- The authorization of IQOS and Eclipse heated tobacco products for sale by the US Food and Drug Administration (FDA) is expected to influence the growth during the forecast period.
- The growing popularity of vaping devices in the UK has achieved a sale of over 17.3 million units of vapor products.
VAPE MARKET SEGMENTATION
This research report includes a detailed segmentation by E-vapor, HnB tobacco, distribution, and geography.
INSIGHTS BY E-VAPOR
E-liquids were the largest revenue-generating product category of the global vape market based on products in 2019. The major reason behind high market share can be attributed to the increased proliferation of VTMs. North America is expected to hold the largest share during the forecast period. Growing technological advancements, developed GDP, increasing manufacturers, and rising demand for e-liquid from this region is surging the growth.
Open tanks systems started to gain popularity among end-users in 2014 when the global e-vapor market faced an influx of private label products, and vaping enthusiasts started demanding strong vaping experience. However, VTMs are more prevalent in European countries such as Italy, France, Spain, Germany, and the UK, where the penetration has crossed 50% mark. The existing demand in the US, Italy, and the UK, along with growing demand from Poland, China, and Russia, will propel the growth during the forecast period.
The advent of closed tanks systems and VTMs has affected the sale of cig-a-likes since 2014. Further, a weak battery power, along with low vapor-producing capacity, leads to dissatisfaction among end-users. Thus, the demand started to decline. However, with the introduction of modern-day cig-a-likes such as the one by V2 Cigs (V2 Cigs EX series), cig-a-likes are started to witness growth.
Closed tanks systems are likely to decline in the e-vapor industry. In recent times, it has been observed that open tank systems are becoming more popular among the people who want to quit smoking and interested in consuming safe smokeless product. This has reduced the sale of closed tank systems worldwide. Further, the sale of closed tanks systems is dented as pre-filled capsules are device-specific. Thus, the choice of e-liquid flavor is limited. This has affected acceptance and penetration among end-users worldwide.
INSIGHTS BY HNB TOBACCO
The HnB market is growing rapidly across the globe. APAC is the largest market for HnB products. The APAC region enjoys a larger share because of the large smoking population and continuous shift toward smoking innovative products. Besides, South Korea, Italy, Russia, and the Czech Republic are the robust industry for heat-not-burn products. HnB products are getting popular due to the shift in social culture and increasing demand of adopting a safer substitute to conventional cigarettes. The rise in demand for these products has enabled companies to bring innovations in products and spend more on promotion.
The market value of heat-not-burn products is expected to grow twice in Western Europe than Eastern Europe. Although the heat not burn market share is minuscule compared to cigarettes, they are expected to witness significant growth during the forecast period. The market size for HnB tobacco consumables is expected to grow at a CAGR of over 20% during the forecast period 2019–2025.
INSIGHTS BY DISTRIBUTION
The distribution environment is rapidly evolving, with systems and processes being upgraded at a rapid pace. Changes in the distribution channels are spurred by expanding competition, accelerating digitization, constant disintermediation, and consumerization of expectations. B2B commerce is witnessing the increase in expectations that are associated mainly with B2C, such as transparent pricing and communities and social connections. This is expected to continue during the forecast period the focus on lowering costs, improving efficiencies, and opening up to new opportunities.
The vapor market is highly consumer-and community-centric. Distributors are increasingly focusing on extending their reach to vape stores and local outlets. E-vapor products are also available to end-users through online OEMs’ e-commerce portals and online direct-to-consumer stores. In 2019, retail sales constituted over 70% of the distribution model, and online stores constituted the rest. The increased demand from retailers, dealers, and consumers for a multi-channel approach and support is driving the growth of the segment.
INSIGHTS BY GEOGRAPHY
The global vape market is growing at a tremendous rate. The US vapor market is consistently increasing after the authorization of the sale of HnB products by the FDA in the country. This is expected to help North America to control a large share as smokers in the US are becoming health conscious. One of the major influencing factors propelling growth is the increasing availability of products in vape shops and over the internet. North America is also home to prominent players of the industry.
Europe captures more than a 33% share of the revenues. Poland, Germany, Italy, Russia, and the Czech Republic are the major contributors to the European market. Poland has been witnessing tremendous growth, with the revenue increasing from $130 million in 2014 to $542.6 million in 2016. The growth can be attributed to heavy taxation on traditional tobacco cigarettes and the presence of low-cost vape devices in the country.
INSIGHTS BY VENDORS
The competitive scenario in the global vape market is currently intensifying. The rapidly changing technological environment could adversely affect vendors as continual innovations and upgrades are the characteristics of this market. The present scenario is driving vendors to change and refine their unique value proposition to achieve a strong presence. The key market players are set to develop efficient vapor products to sustain the competitive landscape. The competitive landscape is highly fragmented. About 300 vendors that operate and sell e-cigarettes under different brand names across the world. Before the entry of major tobacco players in the vaping domain, small companies are engaged in the supplying e-cigarettes.
The entry of large tobacco companies poses a significant threat to small vapor products’ vendors. Large companies such as Philip Morris International and Altria Group are all set to explore the market by developing innovative vaping devices. Altria Group, British American Tobacco (BAT), Imperial Brands, Japan Tobacco International (JTI), and Philip Morris International (PMI) are the leading market players.
The global vape market report includes in-depth coverage of the industry with revenues & forecasts for the following segments:
Market Segmentation by E-vapor
- Pre-filled Cartridges
- Refill Bottles
- Open Tanks Systems
- Closed Tank Systems
- E-cigarettes Batteries
By HnB Tabacco
- HnB Devices
- Direct/Indirect Heating
- HnB Consumables
- Tobacco Sticks
- Tobacco Capsules and Cartridges
- Convenience Stores
- Vape Stores
- Tobacco Stores
- Grocery Stores
- Drug Stores
- Czech Republic
- South Korea
- Australia and New Zealand
- North America
- South Africa
- Latin America
KEY QUESTIONS ANSWERED:
- What is the size of the global vape market?
- What are the market opportunities and industry trends?
- Which segment holds the maximum market share of the vaping market?
- What are the key growth strategies of vape market players?
- What is the vape device market size in North America and Europe regions?
- Which region will provide more business opportunities to the e-cigarette market in future?
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