According to a new market intelligence report by BIS Research, titled "Global E-cigarette and T-vapor Market - Analysis and Forecast, 2017-2025", the e-cigarette and t-vapor market was estimated at $11.43 billion in 2016 and is expected to grow over $86.43 billion by 2025, growing at a CAGR of 23.25% from 2017 to 2025. The search for alternatives to tobacco cigarettes due to rising health awareness among consumers is fuelling the growth of the market.
The smoking pandemic is the leading cause of preventable death worldwide. In the U.S. alone, cigarette smoking causes around 500,000 deaths, annually. Consequently, the health organizations and governments have been in pursuit of smoking cessation products. E-cigarettes and tobacco vapor products are being touted as safer alternatives for cigarettes and the future of tobacco industry. These products imitate the look and feel of cigarettes but, are assumed to release less harmful chemicals than cigarettes.
The U.S. currently has 10 million regular e-cigarette users while, the U.K. has 3 million, as compared to 700,000 in 2012. On the other hand, smoking rates have been on a decline worldwide. For instance, in the U.K., the smoking rate decreased from 20% in 2007 to 16% in 2016.
According to Abdul Wahid, Lead Analyst at BIS Research, "The e-cigarette and t-vaporizermarket is going to be driven by the urgent need to reduce global tobacco related mortality and morbidity. In terms of the products available in the market, open tank systems are the predominant product type with 53% market share. However, tobacco vapor products enjoyed phenomenal success in the countries where they have been introduced and are expected to generate revenue worth $39 billion by 2025. Retail channels such as convenience stores, vape shops and tobacco shops have been the primary distribution channel for most manufacturers, however, online channels are gaining popularity."
Among different e-cigarette product types, open tank systems currently dominate market with revenue generation of $5.16 billion in 2016 and are expected to grow at a CAGR of 21.5% during the forecast period 2017-2025. However, closed tank systems are expected to witness the fastest growth with a CAGR of 21.6% from 2017 to 2025.
E-liquids are the largest revenue generating component of the e-cigarette market and are responsible for over 38.7% of revenue in the e-cigarette market.
T-Vapor market is anticipated to grow at a CAGR of 30.9% throughout the forecast period. Over 76% of t-vapor revenue comes from device sales while, the rest is generated through sales of tobacco capsules and tobacco sticks.
Retail distribution channels such as, vape shops and convenience stores are responsible for 60% of the e-cigarette sales.
Geographically, North America is the largest market for e-cigarettes, and is expected to reach $17.08 billion by 2025. Within North America, the U.S. is the largest market contributing to approximately 96% of the overall North America market.
Asia Pacific is the largest market for t-vapor market and is anticipated to witness a CAGR of 23.79%. Japan contributes over 90% of the t-vapor revenue generated in APAC.
This market intelligence report provides a multidimensional view of the global e-cigarette and t-vapor market in terms of market size and growth potential. It aims at answering various aspects of the e-cigarette and t-vapor market with the help of key factors driving the market, threats that can possibly inhibit the overall market growth, and the current growth opportunities that are going to shape the future trajectory of the market expansion. The study considers the growth-share matrix model for a comprehensive study of the market and assesses the factors governing the same.
Furthermore, the competitive landscape chapter in the report explicates the competitive nature of the global market and enables the reader to get acquainted with the recent market activities such as, product launches, regulatory clearance and certifications, partnerships, collaborations, business expansion, as well as mergers and acquisitions. The research report provides a comprehensive analysis of product sales, manufacturers, and trend analysis by segments and demand, and by geographical regions.
This report is a meticulous compilation of research on more than 150 players in the market ecosystem and draws upon insights from the in-depth interviews with the key opinion leaders of more than 60 leading companies, market participants, and vendors. The report also profiles 15 companies including several key players such as,Japan Tobacco Inc., British American Tobacco, JUUL, Njoy, PAX Labs, Eleaf, Philip Morris International, Altria and Nicopure Labs among others.
Key questions answered in the report:
How has the e-cigarette market evolved in the past, and what is its scope in the future?
What is the Total Addressable Market (TAM), Segmental Addressable Market (SAM) and the potential market opportunity for the global e-cigarette and t-vapor market?
What are the major market drivers, challenges, and opportunities in the global e-cigarette and vaporizer market?
How will each product segment (disposable cig-a-likes, rechargeable cig-a-likes, closed tank systems, open tank systems and t-vapor) grow during the forecast period, and what will be the revenue generated by each of the segments by the end of 2025?
What are the consumer preferences in terms of adoption of different products?
What is the anticipated aftermarket demand for various components of each e-cigarette and t-vapor product type throughout the forecast period?
What are the key developmental strategies implemented by the key players to stand out in this market?
What are the most prominent distribution channels used by players in the e-cigarette and t-vapor market and why? How will the revenue generated through different distribution channels grow through the forecast period?
What are the demand for each product type and its components in different geographical regions? Which product segment will witness the fastest growth in each country?
BIS Research (Business Intelligence and Strategy Research) is a global B2B market intelligence and advisory firm which focuses on those emerging trends in technology which are likely to disrupt the dynamics of the market.
With over 150 market research reports published annually, BIS Research focuses on high technology verticals such as 3D Printing, Advanced Materials & Chemicals, Aerospace and Defence, Automotive, Healthcare, Electronics & Semiconductors, Robotics & UAV and other emerging technologies.
Our in-depth market intelligence reports focus on the market estimations, technology analysis, emerging high-growth applications, deeply segmented granular country-level market data and other important market parameters useful in the strategic decision making for senior management.
What distinguishes BIS Research from the rest of the players is that we don't simply provide data, but also complement it with valuable insights and actionable inputs for the success of our clients.
Contact: Bhavya Banga Email: [email protected] BIS Research™ 9100 West Bloomington Freeway, Suite 159, Bloomington, MN 55431