E-CIGARETTE AND VAPE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

E-cigarette and Vape Market Size and Forecast – 2024-2031

The Global E-cigarette and Vape Market is estimated to be valued at USD 29.96 Bn in 2024. The market is expected to reach USD 155.65 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 26.5% from 2024 to 2031.

Key Takeaways of the E-cigarette and Vape Market:

• The disposable segment is expected to account for 45.1% of the market share in 2024
• The open segment is expected to capture 54.6% of the market share in 2024, driven by its high customization capabilities
• The offline segment is expected to hold 53.4% share of the market in 2024
• North America is projected to lead the global market with a 40.5% share in 2024, followed by the Asia Pacific region, which is expected to hold a 29.8% share

Market Overview:

The market has witnessed tremendous growth in the last few years due to the increasing number of people switching from conventional cigarettes to e-cigarettes and vapes. These products are considered a less harmful alternative to traditional tobacco products and their use has grown rapidly across both developed and developing nations. The growing health concerns related to smoking traditional cigarettes and increasing promotion of e-cigarettes and vapes as a cleaner alternative is expected to drive the market growth during the forecast period. With technological advancements and innovation, manufacturers are introducing new products with varied nicotine levels, flavors, and designs to attract more customers. However, the lack of regulations in some regions such as Africa and concerns around the long-term health impacts of e-cigarettes use can hamper the market growth.

Segmental Insights

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Product Insights - Convenience Drives Disposable Segment’s Dominance

In terms of product, the disposable segment is expected to contribute 45.1% share of the market in 2024, owing to its unmatched convenience. As the name implies, disposable e-cigarettes are meant for single-use and then disposal. They come pre-filled with e-liquid, making them extremely convenient for new or occasional users who do not want the hassle and learning curve of refilling and maintenance. Disposables are also very discreet and compact, easily fitting in pockets or bags, which makes them perfect for on-the-go use. Their single-use nature means users face no issues with leaking or dead batteries, eliminating potential maintenance woes.

Category Insights - Open Systems Dominate Due to Customization Benefits

In terms of category, the open segment is expected to contribute 54.6% share in 2024 as it allows high customization. As opposed to closed pod systems like JUUL, open vaping involves refillable tank-based e-cigarettes that give users control over variables like e-liquid, wattage, and coil type. This customizability is a major attraction for experienced vapers seeking to personalize their experience through flavor exploration and tweaking settings. Being able to choose from a massive selection of e-liquids in different nicotine strengths, PG/VG ratios and unique flavor profiles gives open vapers tremendous satisfaction.

Distribution Channel Insights - Offline Segment Dominates Due to Deep Market Penetration

In terms of distribution channel, the offline segment is expected to contribute 53.4% share in 2024, owing to deep market penetration. Traditional brick-and-mortar retailers like vape shops, gas stations, and convenience stores have built strong relationships with vapers over the last decade, carrying a wide variety of open and closed system e-cigarettes as well as various consumables. Their large nationwide presence ensures even casual or new vapers can easily browse options and get hands-on demonstrations from knowledgeable staff anytime, anywhere.

Regional Insights

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North America E-cigarette and Vape Market Trends

North America is expected to lead the e-cigarette and vape market in 2024, capturing a 40.5% of the market share. This dominance is driven by the region's early entry into the industry, well-established distribution channels, and widespread consumer adoption fueled by innovative products from key players. Home to some of the earliest and largest vaping companies, North America has influenced consumer preferences through diverse product offerings and robust marketing efforts.

Asia Pacific E-cigarette and Vape Market Trends

The Asia Pacific region is projected to claim a 29.8% market share in 2024, emerging as the fastest-growing market. This growth is driven by rising health consciousness, evolving consumer lifestyles, and continuous efforts by global industry leaders to capitalize on the vast opportunities in populous countries like China and India. While regulatory uncertainties persist in certain markets, the presence of an aspirational youth demographic offers significant potential for expansion.

E-cigarette And Vape Market Outlook for Key Countries

U.S. E-cigarette and Vape Market Trends

The U.S. is one of the largest markets for e-cigarettes and vaping devices globally, with significant contributions from new pod mod systems and disposable vapes. And Consumers are gravitating toward disposable vapes due to their convenience, cost-effectiveness, and ease of use. For instance, In 2022, brands like Puff Bar and Vuse saw exponential growth, capturing market share as regulations tightened on pod-based systems like JUUL.

U.K. E-cigarette and Vape Market Trends

The U.K. has seen a significant rise in e-cigarette usage, with tank e-cigarettes being the most popular device type. The government supports vaping as a smoking cessation tool, which has led to a robust market environment. The U.K. government has announced plans to ban single-use vapes in England and Wales by June 2025, citing health and environmental concerns. Additionally, a new tax on vaping products will be introduced in 2026, aiming to reduce smoking rates and manage public health.

China E-cigarette and Vape Market Trends

China is a major player in the e-cigarette and vape market, with a growing consumer base attracted to innovative vaping products. The market is expected to expand as local manufacturers increase production and diversify product offerings. In 2023, several Chinese companies such as Zinwi Bio-Tech launched new e-liquid flavors to cater to evolving consumer preferences. This initiative aims to cater to diverse consumer tastes and maintain a competitive edge in the market.

Germany E-cigarette and Vape Market Trends

Germany e-cigarette and vape market is characterized by a strong regulatory framework that supports product safety and quality. The increasing acceptance of vaping as a smoking alternative is a key trend, with the market projected to grow significantly. In 2023, German health authorities such as German Cancer Research Center (DKFZ) endorsed e-cigarettes as a viable option for reducing tobacco-related harm.

Japan E-cigarette and Vape Market Trends

Japan e-cigarette and vape market is unique due to its focus on heated tobacco products rather than traditional vaping. The market is driven by a cultural shift towards less harmful smoking alternatives. In 2023, major tobacco companies introduced new heated tobacco devices to meet the growing consumer interest in smoke-free alternatives. BAT introduced the glo HILO and glo HILO Plus in Serbia, representing their premium heated tobacco platform. These devices offer improved heating technology, more intense flavor delivery, and quicker startup times, catering to consumers seeking high-quality alternatives.

Market Players, Key Devlopment, and Competitive Intelligence

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Key Developments:

• In June 2023, Altria Group, Inc., a leading U.S.-based tobacco company, acquired NJOY Holdings, Inc., a prominent vaping company. Altria plans to market NJOY’s innovative e-vapor products through its subsidiary, NJOY, LLC, while leveraging the extensive distribution network of the Altria Group Distribution Company. This acquisition aligns with Altria's strategy to expand its smoke-free product portfolio.
• In June 2023, Imperial Brands plc, a U.K.-based multinational tobacco company, entered the U.S. oral nicotine market by acquiring nicotine pouches from TJP Labs. Through its U.S. division, ITG Brands, Imperial Brands introduced 14 distinct pouch variants that had shown strong consumer acceptance during testing. TJP Labs, known for its innovation in nicotine delivery systems, highlighted its commitment to harm reduction by offering flexible and diverse options to consumers.
• In October 2022, Altria Group partnered with JT Group (Japan Tobacco Group), a leading global tobacco company headquartered in Japan, to establish a joint venture. This collaboration focuses on marketing and selling heated tobacco stick products in the U.S. market. The joint venture aims to accelerate the development and global commercialization of smoke-free products, reflecting both companies’ commitment to harm reduction strategies.
• In July 2022, BAT, a leading British multinational tobacco and nicotine products company, launched Glo Hyper X2, the latest addition to its rapidly growing heated tobacco product line. The product was introduced in Tokyo, Japan, featuring an innovative barrel-shaped design and consumer-centric enhancements, based on insights gathered from user feedback. This launch underscores BAT’s focus on innovation in the smoke-free product segment.

Top Strategies Followed by Global E-cigarette and Vape Market Players

• Established Players: Leading companies in the global e-cigarette and vape market heavily rely on extensive research and development to innovate high-performance products. They dedicate significant financial resources to expanding scientific knowledge and developing cutting-edge technologies.
  • For instance, Juul Labs invested over US$ 12 Bn in 2019 towards enhancing nicotine delivery methods, device designs and strengthening safety standards. Such large-scale R&D spending allows big players to accelerate the pace of innovation and stay ahead of competitors.
• Mid-Level Players: Medium-sized companies offering e-cigarette and vape products target price-sensitive consumers with affordable, quality offerings. They focus on strategic cost management during production to maintain competitive pricing. Some establish local manufacturing plants in low-cost regions for raw materials and equipment. Outsourcing certain operations helps optimize expenditure. Additionally, mid-tier players collaborate with small startups offering complementary technologies. This enables them to integrate advanced features without heavy independent R&D investment.
• Small-Scale Players: Emerging small companies compete by catering to niche customer segments ignored by prominent brands. They develop products with unique selling points like innovative accessory options, exotic flavors or customizable devices. Some specialize in premium, artisan products targeting aficionados. Others introduce specialized product lines for seasoned users seeking new experiences.

Emerging Startups - Global E-cigarette and Vape Industry Ecosystem

• Innovative Technologies: Startups like Vapor Innovations are developing advanced vaporizing technologies for heating tobacco and botanical extracts. Their smart sensor vaporizers allow precise temperature control via custom mobile apps. Data analytics tools provide health insights to users. Such innovations could influence user preferences, encouraging adoption of safer alternatives to traditional cigarettes.
• Sustainable Solutions: EcoSmart focuses on sustainability with compostable e-cigarette products made from agricultural waste. Their pods are plastic-free with batteries encased in wooden frames. Partnerships allow industry players to adopt EcoSmart technologies, reducing environmental impact. Alternative startups also use natural and recycled materials for components.

Market Report Scope

Market Dynamics

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Market Driver - Rising awareness about smoking cessation and harm reduction

One of the primary drivers for the growth of the market has been the rising awareness among smokers regarding smoking cessation and harm reduction. There have been numerous studies such as Burden of Disease Study", published in The Lancet. published in past few years which highlighted the harm smoking can do to one's health. Smokers are now well aware about the various diseases linked to smoking like lung cancer, respiratory diseases, cardiovascular problems, etc. This increasing knowledge about health hazards of long-term smoking has encouraged many to quit smoking. However, quitting regular cigarettes is not easy as nicotine addiction makes it difficult.

Market Opportunity - Expansion of product lines with innovative flavors and devices

The global e-cigarette and vape market has a massive opportunity to expand its product lines with innovative flavors and devices. Traditional tobacco flavors no longer interest new consumers, especially the younger demographic. Companies that introduce exciting flavors like unique fruits, desserts, beverages, etc. along with innovative vapor device designs can attract a wider consumer base. Successful brands in the industry have already shown how the right blend of flavors, vapor quality, and modifiable devices have led to increasing customer loyalty and business growth. The availability of open tank systems, pod mods, disposables, and other exciting form factors also keeps the market vibrant.

Market Challenge - Regulatory challenges and restrictions on e-cigarette sales in various regions

The global e-cigarette and vape market have been facing significant regulatory challenges and restrictions on e-cigarette sales in various regions. Many countries have either outright banned or imposed stringent regulations on the manufacturing and sale of e-cigarettes due to health concerns. For instance, countries like Brazil, Thailand, Singapore, etc. have imposed a complete ban on the sale and usage of e-cigarettes. Even in regions where e-cigarette sales are allowed, they are strictly regulated. For example, the U.S. FDA has imposed regulations like banning sales to minors and restrictions on marketing and advertising. 

Analyst Opinion (Expert Opinion)

• The global e-cigarette and vape market look promising over the next five years. Key drivers for growth include the increasing number of people shifting from conventional cigarettes to less harmful vaping devices. Vaping helps in nicotine delivery without the harmful compounds inhaled through tobacco smoking. This has boosted the popularity of e-cigarettes as a harm reduction alternative.
• Different countries have adopted varying regulatory stances which creates compliance headaches. Rising health concerns around youth abuse and long-term impacts may also dampen demand. Stricter policies and social tabs against vaping, if implemented, can restrain market expansion.
• North America currently dominates sales owing to strong early adoption in the U.S. However, the Asia Pacific region is estimated to witness the fastest gains. Penetration of vapes is increasing swiftly in China, India, and Southeast Asia on the back of growing health-conscious consumer base and lax rules relative to the West.

Market Segmentation

• Product Insights (Revenue, USD Bn, 2019 - 2031)
• • Disposable
  • Rechargeable
  • Modular Devices
  • Others
•  Category Insights (Revenue, USD Bn, 2019 - 2031)
• • Open
  • Closed
•  Distribution Channel Insights (Revenue, USD Bn, 2019 - 2031)
• • Offline
  • Online
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Juul Labs, Inc.
  • British American Tobacco plc
  • Imperial Brands PLC
  • Philip Morris International Inc.
  • Altria Group, Inc.
  • Vuse (Reynolds American Inc.)
  • NJOY, Inc.
  • VaporFi, Inc.
  • Innokin Technology
  • Vaporesso (Smoore Technology Ltd.)
  • GeekVape
  • Aspire
  • SMOK (Shenzhen IVPS Technology Co., Ltd.)
  • KangerTech
  • Joyetech