Malaysia E-Cigarette Market Overview, 2028

Malaysia E-Cigarette Market Overview, 2028

Malaysia e-cigarette Market is anticipated to witness progressive growth in the upcoming years on the back of rising adoption of e-cigarettes in place of conventional ones backed by the low use of nicotine in e-cigarettes which is instigating the interest of the majority of the consumers to the product. The increased urge for smoking in the country along with a variety of flavors available in e-cigarettes is drawing the interest of many consumers and is leading to an increased demand for the product in the country and is further, expected to benefit the potential growth of the Malaysia e-cigarette market in the upcoming years. People are increasingly using E-cigarettes or electronic nicotine delivery systems (ENDS) as a substitute for smoking or recreational purposes. Since 1972, the state subsidy of the national tobacco industry is through a special fund supported by a 7% tax on each pack of cigarettes. Due to the growing health concern over the usage of conventional tobacco-based cigarettes, the e-cigarette market has witnessed significant growth over the past decade.

According to the research report Indonesia E-Cigarette Market Overview, 2028, published by Bonafide Research, the market is expected to add USD 0.50 Billion by 2028. E-cigarettes hold a major share of the tobacco products segment. The rechargeable e-cigarettes are expected to witness the highest growth rate in the coming years on the back of the increased life of the product which assists the repeated use of the product. Moreover, manufacturers are introducing new-generation products that offer different strengths of nicotine and enable users to refill the cartridge. Modular e-cigarettes can be refilled by the user, but it also allows the user to regulate the power from the batteries to the atomizer. Apart from this, the easy availability of e-cigarettes across the well-distributed retail sector has further escalated the market growth in the Country. Furthermore, the manufactures offering of customization capabilities such as temperature control and nicotine dosages is projected to boost product demand. Moreover, player’s continual improvement in new product development is expected to accelerate market expansion.

There are an estimated 4.7 million male smokers in Malaysia and more than 135,000 smokers are women. Some 49% of the male smokers are aged 30 to 34. Smoking prevalence is 45% or higher across all age groups among men. For male teens aged 15 to 19, almost 25% smoke. The latest report from the World Health Organization (WHO) shows that the smoking rate in Malaysia has been decreasing, falling from almost 25% to 21% by 2020. Although the largely unregulated tobacco market still presents a significant problem in the country, the average starting age for smoking has been decreasing in recent years, according to national surveys.

Market growth was driven by the increase in the vaping population and the decrease in dual usage, with more and more smokers switching completely to e-cigarette products due to the affordability and availability of the products. This report offers a comprehensive overview of the Malaysia's e-cig market, covering all areas from market size and vaping population to retail channels and form factors. On the back of rising efforts of various top e-cigarette brands in the country towards increasing the market value by help of boosting sales through aggressive promotion. Increased urge for smoking in the country along with a variety of flavors available in e-cigarettes is drawing the interest of many consumers and is leading to an increased demand for the product in the country and is further, expected to benefit the potential growth of the Malaysia e-cigarette market.

Owing to the rising awareness about the harmful effects of traditional tobacco-based combustible cigarettes, the perception of consumers towards combustible cigarettes is changing rapidly, and a growing number of smokers are shifting towards electronic cigarettes to control their daily nicotine dosage. Further, the market is expected to increase due to the growing popularity of e-cigarettes, an upsurge in the working population, a shift towards next-generation products, the mounting prices of tobacco cigarettes, etc. Side effects caused by the use of e-cigarettes and vapour products are acting as a restraint on the e-cigarette market. E-cigarettes and vapour products contain harmful chemicals and toxins that have health risks. The chemicals and toxins may cause serious health problems, including cancer. Some other challenges that the e-cigarette market faces are stringent regulations, nicotine exposure in e-cigarettes, etc.

The Offline segment accounted for the highest market share. Earlier, e-cigarettes were sold in retail outlets such as vape shops and gas stations. These shops assisted customers to try out and test these devices before making a purchase decision is expected to drive the retail store segment growth over the forecast period. The online segment is anticipated to register a significant CAGR over the forecast period. The benefits of online marketplace in terms of competitive pricing, convenience, and access to a wider variety of products encourage people to purchase e-cigarettes and vape online. The country has also been witnessing a rising demand for e-cigarette products, encouraging sellers to sell e-cigarettes online.

Covid-19
Due to the COVID-19 pandemic, the global e-cigarette market witnessed a sharp decline. The pandemic forced people to pay attention to their health and quit habits like smoking in order to tackle this situation. Thus, it impeded the demand for e-cigarettes throughout the pandemic period. Further, retail stores and outlets also stopped offering their products in order to abide by the government rules, which hampered the growth of the e-cigarette market. On the country, the ease of lockdown restrictions has increased the sales of e-cigarettes like before.

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

Aspects covered in this report
• Malaysia 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
• Online
• Offline

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 listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the 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 conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to 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.