E-Cigarette and Vape Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[225+ Pages Report] According to Facts & Factors, the global e-cigarette and vape market size in terms of revenue was valued at around USD 27.92 billion in 2023 and is expected to reach a value of USD 72.36 billion by 2032, growing at a CAGR of roughly 11.16% from 2024 to 2032. The global e-cigarette and vape market is projected to grow at a significant growth rate due to several driving factors.

Market Overview

An e-cigarette, or electronic cigarette, is a battery-powered device that simulates the experience of smoking traditional tobacco cigarettes by vaporizing a liquid solution. This liquid, often referred to as e-liquid or vape juice, typically contains nicotine, flavorings, and other chemicals. When a user inhales through the mouthpiece, a sensor activates a heating element, vaporizing the liquid, which is then inhaled as a vapor, a practice commonly known as vaping.

Vapes come in various forms, including disposable e-cigarettes, rechargeable devices with replaceable cartridges, and more advanced personal vaporizers (APVs) or mods that allow users to customize settings like power and temperature. These devices are designed to provide a similar sensation to smoking without burning tobacco, which produces tar and other harmful by-products.

E-cigarettes and vapes have gained popularity as alternatives to traditional smoking, with many users turning to them in an effort to reduce or quit smoking due to the perception that they are less harmful. However, the health effects of vaping are still being studied, and there is ongoing debate regarding their safety and potential risks.

The e-cigarette market is characterized by rapid innovation and diverse product offerings, catering to a wide range of consumer preferences. Despite their popularity, e-cigarettes and vapes face regulatory scrutiny and public health concerns, particularly related to their use among teenagers and the long-term health implications of vaping.

Key Highlights

• The e-cigarette and vape market has registered a CAGR of 11.16% during the forecast period.
• In terms of revenue, the global e-cigarette and vape market was estimated at roughly USD 27.92 billion in 2023 and is predicted to attain a value of USD 72.36 billion by 2032.
• The e-cigarette and vape market is poised for continued growth, driven by technological advancements and increasing consumer awareness. However, it must navigate regulatory landscapes and public health concerns to sustain its momentum and ensure long-term success.
• Based on the product type, the rechargeable e-cigarette segment is growing at a high rate and is projected to dominate the global market.
• In terms of distribution channel, the offline segment is projected to swipe the largest market share.
• By region, the North America region is expected to dominate the global market.

Growth Drivers:

• Health Consciousness and Smoking Cessation: Increasing awareness about the harmful effects of traditional smoking has led many smokers to switch to e-cigarettes and vapes as perceived safer alternatives. These devices are often marketed as tools for smoking cessation, which appeals to health-conscious consumers?.
• Variety and Customization: The vast array of flavors and nicotine strengths allows users to personalize their vaping experience, potentially attracting a broader audience compared to traditional cigarettes.
• Technological Advancements: Continuous innovations in e-cigarette and vape technology, such as improved battery life, customizable settings, and a wide variety of flavors, enhance the user experience and attract a broader audience.
• Aggressive Marketing and Social Media Influence: Effective marketing strategies, including endorsements by celebrities and influencers on social media platforms, have significantly boosted the popularity of e-cigarettes and vapes, particularly among younger demographics?.

Restraints:

• Health Concerns: The long-term health effects of vaping are still unknown, creating uncertainty and potentially deterring some users.
• Regulatory Challenges: The e-cigarette and vape market face stringent regulations in many countries, including flavor bans, age restrictions, and advertising limitations. These regulations can limit market growth and increase compliance costs for manufacturers.
• Negative Public Perception: Concerns about addiction, second-hand exposure, and potential dangers associated with e-cigarettes can limit market growth.
• Age Demographics: A focus on youth vaping can negatively impact public perception and lead to stricter regulations.

Opportunities:

• Product Innovation: Developing safer and healthier e-cigarette and vape products with transparent ingredients could address health concerns and attract new users.
• Focus on Harm Reduction: Promoting e-cigarettes as a potential tool for smoking cessation could gain support from public health organizations and create new market opportunities.
• Expansion into Emerging Markets: There is significant growth potential in emerging economies where smoking rates are high, and awareness about e-cigarettes is increasing. These markets present opportunities for manufacturers to tap into new consumer bases.

Challenges:

• Black Market: The presence of a black market for e-cigarettes and vapes can undermine safety standards and hinder legitimate market growth.
• Taxation: Governments may impose higher taxes on e-cigarettes and vapes, impacting affordability and potentially leading to a shift towards the black market.
• Anti-Vaping Campaigns: Strong anti-vaping campaigns can negatively impact public perception and limit market growth.

E-Cigarette and Vape Market: Segmentation Analysis

The global e-cigarette and vape market is segmented based on product type, category, flavor, distribution channel and region.

By Product Type Insights

Based on Product Type, the global e-cigarette and vape market is divided into rechargeable e-cigarette, disposable e-cigarette, modular e-cigarette, and next-generation products. In 2023, the rechargeable sector would hold the largest market share more than 42.6%. Rechargeable e-cigarettes, also known as reusable e-cigarettes, come with a rechargeable battery and replaceable or refillable cartridges. These devices offer more customization options in terms of flavors and nicotine strengths compared to disposable e-cigarettes.

The demand for rechargeable e-cigarettes is driven by cost-effectiveness and environmental concerns, as they produce less waste compared to disposables. Users also prefer the flexibility and customization options these devices offer. The rechargeable e-cigarette market is expected to see significant growth due to its long-term cost savings for consumers and increasing environmental awareness?.

Disposable e-cigarettes are single-use devices that come pre-filled with e-liquid and a pre-charged battery. Once the e-liquid is depleted, the entire device is discarded. These devices are popular for their convenience, ease of use, and low upfront cost, making them appealing to beginners and casual users.

However, they generate more waste, which is a growing concern among environmentally conscious consumers. Despite environmental concerns, the disposable e-cigarette market is expected to grow due to its simplicity and convenience, particularly among new users and those seeking a hassle-free vaping experience??.

Modular e-cigarettes, or mods, are advanced vaping devices that allow users to customize various components, such as the tank, battery, and coils. They offer extensive customization options for experienced users seeking to tailor their vaping experience. The appeal of modular e-cigarettes lies in their ability to provide a personalized vaping experience.

They are popular among enthusiasts who prioritize performance and customization. The modular e-cigarette market is expected to grow as vaping technology advances and users seek more control over their devices. Innovations in mod technology and increasing availability of compatible components also drive this segment's growth??.

Next-generation products (NGPs) include a range of advanced vaping devices and new formats, such as heat-not-burn products, pod systems, and other innovative designs that offer enhanced functionality and user experience. NGPs are at the forefront of vaping innovation, offering improved safety features, user-friendly designs, and a better overall vaping experience. The market for NGPs is driven by continuous technological advancements and increasing consumer demand for sophisticated vaping solutions. The next-generation products segment is expected to witness the highest growth rate, propelled by technological innovations and the introduction of new, more efficient vaping devices. This segment is attractive to both new users and experienced vapers looking for the latest in vaping technology?.

By Category Insights

On the basis of Category, the global e-cigarette and vape market is bifurcated into open and closed.

Open system e-cigarettes, also known as open tank systems, allow users to manually refill the e-liquid and often replace the coils. These systems offer greater customization and flexibility in terms of flavors and nicotine strengths. The popularity of open systems is driven by their cost-effectiveness and the ability for users to tailor their vaping experience to personal preferences. They attract more experienced vapers who enjoy experimenting with different e-liquids and device settings. The open system market is expected to grow steadily due to the increasing demand for customizable and sustainable vaping options. Users appreciate the ability to reduce waste by refilling and reusing components??.

Closed system e-cigarettes, also known as closed pod systems, come with pre-filled e-liquid cartridges or pods that are disposed of and replaced once the e-liquid is depleted. These systems are designed for simplicity and ease of use, with no need for manual refilling. Closed systems are popular among new vapers and those looking for convenience and ease of use. The consistent delivery of e-liquid and reduced maintenance appeal to casual users.

However, they generate more waste compared to open systems, which is a concern for environmentally conscious consumers. Despite environmental concerns, the closed system market is expected to grow rapidly due to its convenience and increasing popularity among beginners. The introduction of new flavors and improvements in pod technology further drive this segment's growth.

By Distribution Channel Insights

Based on Distribution Channel, the global e-cigarette and vape market is categorized into online and offline. The online distribution channel includes e-commerce websites, brand-specific online stores, and various third-party online retailers. This channel has become increasingly popular due to the convenience it offers, allowing consumers to browse and purchase products from the comfort of their homes. Online sales are driven by factors such as the broad availability of products, detailed product information, customer reviews, and often lower prices due to fewer overhead costs compared to physical stores.

Additionally, the COVID-19 pandemic accelerated the shift towards online shopping for many consumers. The online distribution channel is expected to continue growing at a significant pace. According to various sources, the convenience of online shopping and the wide range of products available online are major factors contributing to this growth.

The offline distribution channel encompasses brick-and-mortar stores, including specialty vape shops, convenience stores, and supermarkets. These physical locations allow consumers to physically inspect products before purchasing and often provide personalized customer service. This segment has captured a market share of around 64% in 2023. Offline sales benefit from immediate product availability and the ability for customers to receive in-person advice and support from knowledgeable staff.

Specialty vape shops, in particular, play a crucial role in educating consumers about products and helping them choose the right devices and e-liquids. Despite the growth of online sales, the offline distribution channel remains robust. It is particularly strong in regions where consumers prefer in-person shopping experiences or where online sales are restricted by regulations.

Recent Developments:

• In June 2023, Imperial Brands plc announced its strategic acquisition of nicotine pouches from TJP Labs, marking its entry into the U.S. oral nicotine market. This acquisition empowers ITG Brands, Imperial's U.S. division, to offer a diverse range of 14 different nicotine pouch products, each performing well in consumer tests. TJP Labs aims to use this acquisition to further its mission of promoting global harm reduction, expanding customer choice, and enhancing product flexibility.
• In June 2023, Altria Group, Inc. made a significant move by acquiring NJOY Holdings, Inc., a prominent vaping company. Following the acquisition, NJOY e-vapor products will be marketed under NJOY, LLC, a subsidiary of Altria. The distribution of NJOY’s products will be managed by the Altria Group Distribution Company, enhancing the reach and availability of NJOY’s offerings in the market.
• In July 2022, British American Tobacco p.l.c. unveiled the Glo hyper X2, the latest innovation from its rapidly expanding heated tobacco brand, in Tokyo, Japan. This new product features a sleek barrel styling design influenced by consumer feedback, incorporating user-friendly and innovative features to enhance the consumer experience.

Report Scope

E-Cigarette and Vape Market: Regional Analysis

• North America will lead the global market over the forecast period

North America dominated the global market and accounted for 42.3% of the total revenue share in 2023. North America is a significant market for e-cigarettes and vapes, driven primarily by the United States and Canada. The region has seen substantial growth due to the increasing acceptance of vaping as an alternative to smoking and strong consumer demand for innovative vaping products. Regulatory frameworks in the U.S., such as the FDA's regulations on e-cigarette products, influence market dynamics. The U.S. leads the North American market, with a high number of vapers and well-established distribution channels?.

Europe is one of the largest and most mature markets for e-cigarettes and vapes, with widespread acceptance across countries such as the UK, France, Germany, and Italy. The region's market is supported by favorable regulations and a strong culture of harm reduction regarding smoking. European consumers are also more inclined towards health-conscious choices, fueling the demand for less harmful alternatives like e-cigarettes. The UK is a leading market in Europe, known for its progressive stance on vaping and robust regulatory environment that supports the use of e-cigarettes for smoking cessation?.

The Asia-Pacific region is witnessing rapid growth in the e-cigarette and vape market, driven by increasing urbanization, rising disposable incomes, and growing awareness of the harmful effects of traditional smoking. Key markets in this region include China, Japan, South Korea, and Australia. The regulatory landscape is varied, with some countries having strict regulations and others having more relaxed policies. China, being the largest producer of e-cigarettes, dominates the market in the Asia-Pacific region. Japan and South Korea are also significant markets, with high adoption rates of heated tobacco products?.

Latin America is an emerging market for e-cigarettes and vapes, with increasing awareness about vaping as a safer alternative to smoking. Brazil and Mexico are leading countries in the region, where the adoption of vaping products is gradually rising. Brazil is the dominant market in Latin America, supported by a growing middle class and increasing acceptance of vaping.

The Middle East and Africa region shows varied growth patterns due to differing regulatory environments and levels of consumer acceptance. While some countries have strict regulations, others are more open to the adoption of vaping products. The market is still in its nascent stages but shows potential for growth as awareness increases. The UAE and South Africa are notable markets in this region, with increasing consumer interest in vaping as an alternative to smoking.

E-Cigarette and Vape Market: Competitive Landscape

Some of the main competitors dominating the global e-cigarette and vape market include;

• Altria Group
• British American Tobacco
• Imperial Brands
• International Vapor Group
• Japan Tobacco Inc.
• JUUL Labs, Inc.
• NicotekLlc
• NicQuid
• Njoy Inc.
• Philip Morris International Inc.
• Reynolds American Inc.
• Shenzhen IVPS Technology Co., Ltd.
• Shenzhen KangerTech Technology Co., Ltd.
• VMR Flavors LLC

The global e-cigarette and vape market is segmented as follows:

By Product Type Segment Analysis

• Rechargeable E-Cigarette
• Disposable E-Cigarette
• Modular E-Cigarette
• Next-Generation Products

By Category Segment Analysis

• Open
• Closed

By Flavor Segment Analysis

• Sweet
• Tobacco
• Fruit
• Botanical
• Beverage
• Others

By Distribution Channel Segment Analysis

• Online
• Offline
  • Specialty e-cigarette shops
  • Supermarkets and hypermarkets
  • Tobacconist store
  • Convenience store
  • Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America