North America E-Cigarette Market Outlook, 2028

North America E-Cigarette Market Outlook, 2028

The penetration of e-cigarettes in North America is incredibly high owing to the rising popularity of e-cigarettes among the youth population, the rapid expansion of vape shops, and the prevalence of online retail. The usage of e-cigarettes among youth and young adults in the region is rising at an alarming rate owing to the availability of a vast selection of brands and flavors in online stores. They find e-cigarettes trendy and are attracted by the various aspects such as compact designs which offer concealability, availability of a large assortment of flavors, and the flavored/odorless aerosol exhaled which makes it hard to detect. One of the popular brands among the demographic is JUUL, a brand of e-cigarette that is shaped like a USB flash drive.

According to the research report, “North America E-cigarette Market Outlook, 2028” published by Bonafide Research, the market is anticipated to grow with 21.89% CAGR during the forecast period. The increasing awareness among individuals about the harmful effects of conventional cigarettes and their growing willingness to quit smoking tobacco products are catalyzing the demand for e-cigarettes in the region. Moreover, manufacturers are introducing new-generation products that offer different strengths of nicotine and enable users to refill the cartridge. In addition to this, the availability of different flavored e-cigarette variants including mint, menthol, chocolate, bubble gum, and fusions of other fruits and flavorings are attracting a large number of consumers. Apart from this, the easy availability of e-cigarettes across the well-distributed retail sector has further escalated the market growth in the region.

North America has the largest share of the e-cigarette market. The use of these things by youth has resulted in an upsurge in demand. In the United States, for example, e-cigarettes are primarily used by teenagers. 3.6 million US middle and high school students used e-cigarettes over a 30-day research period in 2020, according to the Centers for Disease Control and Prevention (CDC), with 4.7 percent of middle school students and 19.6% of high school students using them. E-cigarettes account for the vast majority of tobacco products; there are currently over 3,000 different e-cigarette flavors available in the United States, with new flavors being released every year. Nicotine-free e-liquids provide a more pleasant vaping experience than other varieties. Furthermore, professional vapers who perform at several events and engage in chain vaping for practice believe that nicotine-free vaping is the best alternative to traditional vaping in the regional market. The association of vaping/e-cigarettes with fashion appeal enhances e-cigarette demand in the North American market.

Over the past decade, E-cigarettes have emerged as one of the fastest-growing segments within the Tobacco Products market, especially amongst the younger generations, owing to factors such as their perception of being reduced-risk products, among others. In fact, according to obtained data, 27% of the Millennial/Generation Y population in the U.S. stated that they were users of E-cigarettes, compared to an overall average of 19%.

North America accounted for the highest market share in terms of revenue in 2021, owing to the extensive presence of prominent players such as Altria Group, Inc. and Philip Morris International Inc., which hold a significant share of the regional market. North America E-cigarette Market is anticipated to register growth on the back of increasing disposable income, the imposition of high taxes levied on tobacco and conventional cigarettes, and a spur in the number of smokers in the developed economies across the region. Additionally, the low use of nicotine in e-cigarettes along with the low smoke emission technicality of the product is anticipated to provide vast avenues for the growth of the North American e-cigarette market in the coming years. Moreover, the government of several North American countries has backed e-cigarettes as a public health fix to eradicate traditional smoking habits, creating awareness regarding the advantages of e-cigarettes over traditional smoking methods.

The Tobacco and Vaping Products Act (TVPA) establishes a nationalized framework for vaping products, in addition to governing how tobacco products are to be produced, labeled, promoted, and sold in the country. This move aims at improving the accessibility of vaping products such as e-cigarettes with nicotine to adults in order to shift their focus from traditional tobacco products and to curb the sale of vaping and tobacco products to minors. JUUL Labs, Inc. a prominent manufacturer of vaping products such as e-cigarettes entered Canada soon after the TVPA act was implemented. The company had pilot-tested its new offering in Canada, JUUL C1, a connected device that allows the user to monitor their usage and track the device if lost. This has led to increased consumption of e-cigarettes in the country and region.

Further, the US e-cigarette market is expected to gain traction in the overall North American e-cigarette market and dominate the overall market revenues in the coming timeframe on the back of an increase in the number of smokers in the country with the young population contributing more towards the indulgence to smoking which is inducing high demand numbers for e-cigarettes in the country along with ease of carrying the product while traveling and charge facilities which are making it a lucrative option for purchase. The increasing popularity of flavored disposable e-cigarettes offered by brands such as Puff Bar, Vuse, and Suorin, is one of the major factors that is expected to drive the growth of the industry in the region. According to an article published by U.S. Food and Drug Administration in March 2022, among students in the U.S. who currently used disposable e-cigarettes, Puff Bar was the most commonly reported usual brand (26.8%), followed by Vuse (10.5%), and Suorin (2.1%). Furthermore, the rising adoption of the product among millennials and Gen X is expected to boost the market growth.

Covid-19 Impacts:
The COVID-19 epidemic had a relatively negative impact on the market for e-cigarettes. Regular smoking has been related to a variety of serious illnesses. COVID-19 is more likely to impact smokers than non-smokers, according to the World Health Organization. Furthermore, the COVID-19 pandemic in the United States had far-reaching effects on e-cigarette use. According to a survey published by Gaiha University, roughly 56.4 percent of the young American population has changed their e-cigarette use since the COVID-19 pandemic began. Furthermore, one-third of young people stopped vaping. At the same time, another third cut back on their usage of e-cigarettes, with the remainder expanding their use or shifting to certain other nicotine or cannabis-related products.

Major Companies present in the market:
British American Tobacco, Turning Point Brands Inc., Philip Morris International Inc., imperial brands, ITC, White Cloud Electronic Cigarettes, Japan Tobacco, Shenzhen IVPS Technology Co. Ltd., KangerTech, PhixVapor, Innokin Technology, Altria Group, Inc

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

Aspects covered in this report
• North America E-Cigarette market with its value and forecast along with its segments
• Country-wise e-cigarette appliances market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report
• United States
• Canada

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 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.