Electronic Cigarettes Market Assessment, By Product Type [E-cigars, E-pipes, Others], By Category [Modular, Rechargeable, Disposable], By System Type [Open Vaping System, Closed Vaping System], By Flavor [Original Tobacco, Mint and Menthol, Fruit and Cand

Electronic Cigarettes Market Assessment, By Product Type [E-cigars, E-pipes, Others], By Category [Modular, Rechargeable, Disposable], By System Type [Open Vaping System, Closed Vaping System], By Flavor [Original Tobacco, Mint and Menthol, Fruit and Candy, Chocolate, Dessert, Others], By Composition [Nicotine, Non-Nicotine], By Mode of Operation [Automatic, Manual], By Price Range [Value Segment, Premium Segment], By Distribution Channel [Offline, Online] By Region, Opportunities and Forecast, 2017-2031F

Global electronic cigarettes market is projected to witness a CAGR of 13.2% during the forecast period 2024-2031, growing from USD 33.1 billion in 2023 to USD 89.25 billion in 2031. The market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years.

Factors like consumers’ changing lifestyles and increase in stress, along with varied product offerings and availability of different flavors at low cost and lesser negative health effects are expected to boost the market growth. Also, the rising number of youths who prefer smoking tobacco drives the demand in the electronic cigarettes market.

Other factors that contribute to the growth of the market are the surge in the working population, peer influence on millennials, increase in personal disposable income, influence of social media, and technological advancements. These factors result in the positive trajectory of the market, boosting the demand for electronic cigarettes.

To cater to the high demand of consumers, the manufacturers are bracing themselves and strategically making agreements and launching new products to keep their places secure in the market. For instance, in March 2023, Altria Group, Inc., maker of Marlboro, bought electronic cigarette startup company NJOY for approximately USD 2.8 billion to strengthen its smoke-free product business. The announcement surfaced soon after Altria Group, Inc. exited its complete stake in e-cigarette producer, Juul Labs. Altria Group, Inc. acquired Juul Labs in 2018, with the stake valued at USD 12.8 billion.

Growing Working Population Leading to a Surge in the Popularity of E-Cigarettes

The growth in the working population has contributed to a surging demand for electronic cigarettes due to various reasons. Since consumers’ lifestyles revolve around work and offices, anxiety and stress levels are increasing among the working people, which results in the growing consumption of nicotine which is a stress relieving agent and helps calm the consumers.

Moreover, the social environment of the workplace, where smoking breaks are very common, influences the non-smokers, to inculcate the habit. The rise in disposable income among the working class further fuels the growth of the market. Marketing strategies targeting working professionals play a very crucial role in promoting smoking as a lifestyle choice. As the working population expands, the market for cigarettes is creating a surge in demand and helping the market expand.

For instance, in November 2022, Imperial Brands PLC launched a new range of disposable vapes under the Blu banner. It is a collection of compact, small pocket-sized vapes, each consisting of 20 mg of nicotine in a 2 ml liquid, giving around 600 puffs. These vapes have an LED indicator that lights up whenever the product is in use. The product is retailed in the market for USD 5.99. It was launched in flavors including banana, mango, watermelon, peach, and strawberry.

Peer Influence Among Millennials are Boosting the Market

Peer influence among millennials has contributed to a surge in demand for electronic cigarettes. Social environment, desire for acceptance, and fear of missing out push non-smokers to start smoking. Thus, influenced by peers, non-smokers tend to normalize smoking. Millennials often associate stress relief with cigarettes and the influence of social media further amplifies the trend. Consequently, the urge for social acceptance and peer pressure influence fuels cigarette consumption among millennials, expanding the growth of the market in the coming future.

Key players are taking advantage of the situation and innovating and promoting their products to attract consumers towards their businesses. For instance, British American Tobacco PLC announced the launch of latest version of its vaping devices, Glo range in January 2024. The Glo Hyper Pro offers better performance compared to the previous versions. The latest version takes a charge of about 90 minutes for an all-day output. Once fully charged, the consumers can expect to use the device for around 20 sessions. The new Glo range is available in Japan, Italy, and Poland, with further global expansion planned by the company in 2024.

Alarming Health Effects Curb the Growth of the Market

Cigarette consumption poses severe health risks, adversely affecting consumers’ health in many ways. The inhalation of tobacco smoke introduces harmful chemicals into the respiratory system of an individual. Chronic exposure damage and lung tissues are leading to conditions, like chronic obstructive pulmonary disease (COPD) and emphysema, restricting respiratory function and causing permanent coughing.

The cardiovascular system suffers a lot. Nicotine and other toxins in cigarettes increase blood pressure and heart rate, contributing to atherosclerosis, increasing heart attacks strokes, and risks. Moreover, the carbon monoxide in tobacco smoke reduces the blood's oxygen-carrying capacity, straining the heart from proper oxygen supply.

Additionally, cancer caused by smoking cigarettes is very common. Lung cancer is the most common, smoking cigarettes causes cancers of the mouth, throat, esophagus, pancreas, bladder, and other body parts. The carcinogens in tobacco damage DNA, leading to the development of malignant cells.

Beyond these well-known risks, smoking accelerates aging, causing premature wrinkles and skin damage due to reduced blood flow. Reproductive health is compromised by smoking, with an increase in infertility and pregnancy complications. Passive smoking affects non-smokers, causing respiratory and cardiovascular risks.

Thus, cigarette consumption puts a devastating toll on health, impacting nearly every organ system and contributing significantly to uncurable diseases and premature mortality. Efforts to curb smoking remain crucial for public health and well-being.

Technological Advancements Help in the Growth of the Market

Manufacturers are continuously gazing towards technological advancements in e-cigarettes, which has led to a surge in demand. Innovations like adjustable wattage, temperature control, and sleek designs enrich the experience of the consumers, replicating traditional smoking without the harmful effects. Also, advancements in battery efficiency and flavor customization attract diverse consumers and cater to their dynamic preferences. The integration of smart technology, such as Bluetooth connectivity and app-controlled features, further attracts tech-savvy consumers. The continuous evolution in the industry ensures the creation of safer alternatives to conventional smoking and creates a wide market, driving the high demand for e-cigarettes. As manufacturers refine and expand these technologies, the trend of the latest and modern options and customizable vaping experiences is expected to continue to propel the growth of the market.

In November 2023, VOOPOO launched its advanced technology developed products in the electronic cigarette market. The company released VOOPOO DRAG X2, DRAG S2 and the PnP X platform to revolutionize the consumers’ vaping experiences. The product provides consumers with clean, joyous, and smooth vaping experience through its compact device, containing 100 mL of e-liquid without the fading of flavor and burning of the coil. The e-liquid in the device comes in two flavours, namely, coffee and tobacco, in the freebase+nic salt type.

Future Market Scenario (2024 – 2031F)

With the growing work pressure, stressful lives, rise in mental traumas, and increasing peer influence and trends, the market will continue to expand in future with great heights. For the same reasons, an enormous increase in demand for electronic cigarettes will come from people of 15-64 years of age.

Many tobacco alternates will be seen in the market to cater to the non-smokers as well and expand the market for a greater base of audience.

Key Players Landscape and Outlook

Key participants in the electronic cigarettes market are driving the growth of the market through product innovation, technological advancement, and strategic partnerships. The manufacturers are innovating and launching new products to cater to the dynamic needs of the consumers.

In July 2023, Japan Tobacco Inc. launched With 2, under its brand ‘With’. Its latest electronic cigarette is world’s first tobacco infused vapor device, featuring the company’s unique vapor technology. It generates vapor during an atomized liquid passing through a capsule consisting granulated tobacco. The product consists of a dual mode which allows the consumers to switch conveniently between two heating modes through a touch button. The normal mode produces 1.3 times less vapor than the high mode, delivering a less intense flavor in the former. The product was sold at the Japanese tobacco and convenience stores in beginning of September 2023, and was made available for online presale from August 2023.

Further, in October 2022, Japan Tobacco Inc. and Altria Group, Inc. announced a joint venture to commercialize and market their latest Heat-not-Burn product (Heated tobacco sticks), with Ploom and Marlboro branded devices in the United States market. Japan Tobacco Inc. believes that the newly incorporated partnership through a long term MOU will help in supporting its strategic aim to build a presence globally in reduced risk products (RRPs) and create a space for themselves in the e-cigarette market through a keen focus on their jointly developed heated tobacco sticks.