E-Cigarette Market to Reach $48 Billion by 2023: P&S Market Research

NEW YORK, Jan. 02, 2018
(GLOBE NEWSWIRE) -- According to the report published by P&S
Market Research, the global e-cigarette market is forecasted to attain a
value of $48 billion by 2023. The growth in
the market will be led by factors such as increasing demand for
smokeless and ashless vaping and surge in the number of vape shops and
designated stores. The e-cigarette market can
be broadly categorized into cig-a-like, vaporizer, vape mod, t-vapor,
and aftermarket product types. The market for t-vapor is projected to
witness the fastest growth, of around 60%, during the forecast period.
T-vapor is comparatively a new category that uses real tobacco. T-vapor
products are sold in two versions: heat-not-burn and infused. Cig-a-like
can further be categorized into disposable and rechargeable types,
while vaporizer can be segmented into open tank and closed system types.
The aftermarket products include batteries and chargers, and
cartridges.The major channels of
distribution are vape shops, supermarkets, online, and tobacconists.
Among these channels, vape shops are estimated to generate the highest
revenue for the e-cigarette market in 2017. Asia-Pacific
is the region offering ample growth opportunities for the vendors.
Large population coupled with increasing urbanization has been
propelling the demand in the region. China has been the forerunner in
the regional e-cigarette industry, with an estimated 40.3% share in
2017. After the U.S. and the U.K., China is estimated to be the third
largest e-cigarette market globally in 2017, which is further expected
to grow during the forecast period. On the
basis of a survey conducted by the Chinese Center for Disease Control
and Prevention in 2014, 45% of students aged 13–15 years had heard of
e-cigarettes and 1.2% had used them in the preceding 30 days. It has
been observed that for every 1% consumer shift from combustible
cigarettes to its less harmful counterpart, the market for latter in the
country increases by almost $5 billion. Advertisement campaigns have
been educating the consumers about the benefits of switching from
combustible cigarettes to its less harmful alternative, consequently
driving the e-cigarette market in the country.Competition in the e-cigarette industry is
being restructured with every major merger and acquisition taking place.
British American Tobacco (BAT), Japan Tobacco Inc., Altria Group,
Imperial Brands, and NJOY LLC have been the major players involved in
inorganic expansion. In July 2017, BAT completed the acquisition of
Reynolds American Inc. to enhance its tobacco and t-vapor product
portfolio. BAT has recently showed interest in acquiring the South
African company Twisp to expand its next-generation product offerings in
South Africa. Imperial Brands, on the other hand, acquired the
U.K.-based vaping products company Nerudia to enhance its
next-generation product portfolio.

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