Chile E-cigarette Market Overview, 2028

Chile E-cigarette Market Overview, 2028

Chile has the world's fifth-highest smoking rate and the highest in Latin America. The country's healthcare system spends 1.15 trillion pesos each year on smoking-related ailments. Given this, E-cigarettes are thought to be less hazardous and safer than traditional tobacco cigarettes, making them a potential option. According to one study, persons who just smoked e-cigarettes had similar amounts of carcinogens to people who used nicotine replacement therapies and substantially lower toxicity levels than people who exclusively smoked cigarettes. Reduced toxicity levels and cost concerns are projected to fuel the Latin American e-cigarette business. Chile has the world's fifth-highest smoking rate and the highest in Latin America. Almost all tobacco use begins in childhood and continues throughout adolescence. Every day, approximately 3,200 children aged 18 and under light their first cigarette. Every adult smoker who dies early is replaced by two new young smokers. Although direct marketing to children is no longer permitted, the tobacco industry continues to create, package, and advertise its products in ways that appeal to the younger population. Companies seek product innovation based on health and well-being, consumer preferences, and so on. Chinese private enterprises such as Innokin Technology and KangerTech likewise limit the distribution of these items.

According to the research report, “Chile E-cigarette Market Overview, 2028” published by Bonafide Research, the market is projected to add USD 12.62 Million by 2028. In terms of Product Type, the Modular Devices category held the largest market at around 50% in 2022. The key element driving the category is the devices' high-level customization ability to integrate multiple functionalities and components. These elements and components, depending on individual preferences, alter the flavor and volume of vapor produced by the device. The regular organizing of Vaping events, including Vape conferences and contests, increases the need for modular devices. Furthermore, the Next Generation e-cigarette category is predicted to develop significantly throughout the projection period due to features such as portability, lightweight, and discretion. Because of their popularity among teenagers, flavors such as Tobacco and Botanical account for more than 50% of the overall market share. Fruit Flavour is expected to develop quickly during the forecast period due to rising consumer demand, particularly for the taste of real fruits. People are increasingly turning to E-cigarettes or electronic nicotine delivery systems (ENDS) as a smoking or recreational substitute. Because of growing health concerns about the use of traditional tobacco-based cigarettes, the e-cigarette market has grown significantly over the last decade. Vape shops are frequently found in regions where they are technically banned in the region, as enforcement of e-cigarette legislation is frequently left to local authorities. Only five countries in the region have legalized and permitted the sale of e-cigarettes: Chile, Ecuador, Honduras, Paraguay, and Costa Rica.

As per World Bank, Chile has a population of 19.2 million people in 2021, with 9.41 million men and 9.79 million women. 3.65 people are under the age of 14, and 16.9 million are between the ages of 15 and 64. There are 8.2 million urban residents and 2.3 million rural residents. According to one survey, electronic cigarette consumption among individuals aged 12-65 years increased from 3.6% in 2014 to 6.5% in 2016. The highest incidence of e-cigarette use has continuously been recorded in younger age groups (15-24 years), particularly in the Metropolitan Region (Greater Santiago), where e-cigarette use among those aged 13-15 years was 12.1% in 2016.

The offline distribution channel, which comprised retail outlets, accounted for the majority of the market share. E-cigarettes were initially sold at retail businesses such as Vape shops and gas stations. These shops assisted customers in selecting from a wide range of devices and e-liquids. Furthermore, Vape shops that allow clients to sample and test these devices before purchasing them are predicted to improve the retail store category during the projection period. Because of the increased online sales potential for e-cigarettes, suppliers were pushed to tighten their online purchasing systems in terms of security and dependability, resulting in increased demand for these items online. Flavor and fragrance sellers are supplying a varied choice of e-liquids to compete with the growing popularity of Vaping devices. Various tastes, such as menthol, mint, chocolate, cola, bubble gum, and fusions of other fruits and flavoring substances are luring a large number of consumers to adopt these e-cigarette devices.

Recent Development:
•In February 2021, Innokin technology launched the new Sensis pod mod. The Sensis features an upgrade in technology that extends coil life and boosts flavors for an unrivaled experience.
•In August 2021, Philip Morris International Inc. announced the launch of IQOS ILUMA, the latest and most innovative addition to its growing portfolio of smoke-free products for adults who would otherwise continue to smoke or use nicotine products. Today, this range of better and more satisfying alternatives to cigarettes includes multiple generations of the IQOS tobacco heating system, the world's No. 1 heated tobacco product.1 Uniquely, the new IQOS ILUMA becomes the brand’s first tobacco-heating system to introduce induction-heating technology, which utilizes no blade and requires no cleaning.
•In November 2020, British American Tobacco announced its US business had acquired drift sciences LLC's nicotine pouch product assets.

Covid-19 Impact:
The spread of COVID-19 is expected to contribute to declining of the Chile E-cigarette market on the back of disturbances in the supply chain and discontinuation of production. Moreover, consequent disruptions in the operations during the lockdown period in the country are likely to dip the sales revenue for many of the top E-cigarette brands in the near term and significantly contribute towards the slow growth of Chile's E-cigarette market in the coming years.

Considered in this report
•Geography: Chile
•Historic year: 2017
•Base year: 2022
•Estimated year: 2023
•Forecast year: 2028

Aspects covered in this report
•Chile E-Cigarette market with its value and forecast along with its segments
•Various drivers and challenges
•On-going trends and developments
•Top profiled companies
•Strategic recommendation

By Product
•Modular E-Cigarette
•Rechargeable E-Cigarette
•Next-Generation E-Cigarette
•Disposable E-Cigarette
•Others

By Flavour
•Tobacco
•Botanical
•Fruit
•Sweet
•Beverage
•Others

By Battery Mode
•Automatic E-cigarette
•Manual E-cigarette

By Distribution Channel
•Offline
•Online

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual reports of companies, and analyzing government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the e-cigarette industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.