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Electronic Cigarette Market Size to Worth over $22 billion by 2023

Published date : Jan-2018

The electronic cigarette market is expected to grow at a CAGR of 9.19% during the 2017-2023.


Arizton’s recent market research report on e-cigarette market segments the market by e-vapor products (e-liquid, VTMs, closed tanks, cig-a-likes), and e-vapor product aftermarket (e-cigarette batteries and atomizers/cartomizer/clearomizers)

The global e-cigarette market is projected to generate revenue of over $22 billion by 2023. The market is expected to grow at a CAGR of 9.19% during the forecast period.

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The e-cigarette market is divided into two major segments –e-vapor products and e-vapor product aftermarket.

Electronic Cigarettes Market

The global electronic cigarette market is also popularly known as the e-cigarette or e-vapor market. The e-vapor or e-cigarette products are very popular in the global market. Electronic cigarettes or e-cigarettes are battery-operated devices that vaporize nicotine that is inhaled by end-users. The introduction of next-generation e-vapor products will fuel the growth of the e-cigarette market during the forecast period. The proliferation of vape shops and the increase in long-established channels of distribution are helping e-vapor products and e-cigarettes to increase market share in the global electronic cigarette market. The introduction of innovative products such as VTMs and closed systems will drive the demand for electronic cigarettes in the global market during the forecast period.

E-liquids product segment in e-cigarette market will grow at a CAGR of 11% during the forecast period

The e-vapor/e-cigarette product segment in the electronic cigarette market is further divided into e-liquid, VTMS, closed tanks, and cig-a-likes.

E-liquids are the largest revenue generating product category of the global electronic cigarette market, accounting for more than 38% of the total market share in 2017.

The increasing proliferation of VTMs or APVs is attributing to the growth of the e-liquid product segment in the electronic cigarette market. Vendors are focusing on introducing a variety of flavors that meet consumer requirements to boost the sales of e-liquid in the global market. Flavors classic tobacco and menthol are the most preferred e-liquid flavors that are available in the market. The US and Italy are largest revenue generating countries in the e-liquids market. The vendors in the e-liquid market segment are also focusing on launching zero-level nicotine to promote the use of e-cigarettes in markets where nicotine-loaded e-liquids are not allowed. The development of new flavors and superior products will propel the growth of the e-cigarette market during the forecast period.

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E-vapor product aftermarket in the e-cigarette market to grow at a CARG of over 6% during the forecast period

E-vapor product aftermarket primarily consists of accessories and components that are essential for a repeated user of e-vapor products or e-cigarettes. The e-vapor product aftermarket is categorized into e-cigarette batteries and atomizers/cartomizers/clearomizers. The introduction of next-generation vaping products will drive the growth of this segment in the global e-cigarette market. The e-vapor product aftermarket is expected to generate revenues of $1.42 billion by 2023, growing at a CAGR of 6.21% during the forecast period.

The value chain process of e-vapor and HnB tobacco vapor products is a simple process that starts from the supply of high-quality raw materials. Once suppliers provide raw materials to the e-cigarette manufacturers, they design and develop vapor products and distribute them to wholesalers. Vapor products are subsequently distributed to retailers from wholesalers. Since 2014, China has produced and supplied 90–95% of the overall vapor products and has sold them under different brands worldwide. A majority of vendors such as Altria Group have started to produce their own e-juices.

The focus is to achieve maximum value at each stage of the value chain. On average, retailers enjoy a decent 35% margins on e-cigarettes against a 20% margin on traditional tobacco cigarettes worldwide.

Competitive Landscape

There is an intense competition among the global e-vapor and HnB tobacco vapor market which is also undergoing rapid changes in the technological environment, continual innovations, and upgrades. This scenario is driving e-cigarette vendors to expand, change and refine their value proposition to achieve strong market presence. The entry of large tobacco companies in the market poses a significant threat to small vapor products’ vendors. These e-cigarette manufacturers compete on various factors such as price, availability, brand, and safety. However, the price is set to become a major base for competition among players to gain an edge over other vendors in the electronic cigarette market.

The leading vendors in the e-vapor and electronic cigarette market are Altria Group, British American Tobacco, Imperial Brands, Japan Tobacco International, and Philip Morris International.

The complete overview of the latest market research report on “Global Vapor Products (e-vapor and heat-not-burn (HnB) devices) Market” by Arizton is now available.

The report also offers a detailed study of major trends, drivers, challenges, and provides the market size and forecast for major geographical regions and key countries.

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