The growing global health awareness and technological developments aiding safer smoking is driving the global vapor products (e-vapor and heat-not-burn (HnB) devices) market and is expected to cross $43 billion by 2023, growing at an impressive CAGR of over 15% over 2017-2023.
This market research report on the vapor products market offers an analysis about market size and forecast, market share, industry trends, growth drivers, and vendor analysis. The market study offers insights about segmentation in terms of products (cig-a-likes, closed tanks systems, VTMs, e-liquids, cartomizers, e-cigarette batteries, heat-not-burn (HnB) devices, tobacco sticks, and tobacco cartridges), and by distribution (retail and online), and by region (APAC, Europe, Latin America, MEA, and North America).
The e-cigarette market is growing at a tremendous rate, thereby gaining popularity worldwide. Several key vendors are introducing next generation vapor products such as Heat-not -Burn (HnB) devices, e-vapor, smoke vapes, smokeless tobacco products, cig-a-likes, and reduced risk products (RRP) cigarettes due to the increasing popularity of e-cigarettes. The recent developments in the vapor products market are the introduction of vaping devices or battery-powered inhalers. These vaping products reduce the risk of tobacco-related diseases by eliminating the inhalation of tar and other toxicants by active and passive smokers. E-cigarettes/e-vapor and HnB devices are designed to simulate tobacco smoking by providing inhaled doses of e-juices through vaporizing the flavored liquid, which, in turn, will boost sales in the e-cigarette market.
About one billion people in the world fall under the category of tobacco smokers, constituting approximately 13% of the total world population. According to the WHO, around 7 million people die due to tobacco smoking annually, out of which 890,000 die due to passive smoking.
Vapor Products Market - Dynamics
Launch of new vapor product lines to contribute to the growth of the e-cigarette market globally.
The perception of end-users toward e-vapor and HnB tobacco vapor products is changing worldwide. The vapor products market is witnessing an increase in desire among end-users globally to quit smoking because of the increasing number of deaths caused by smoking-related cancer, respiratory diseases, and heart diseases. These factors are primarily contributing to the decline of the global sales volume of traditional cigarettes over the last few years. This trend, coupled with continuous innovations in e-vapor and HnB devices, is prompting large tobacco companies such as Altria Group, Imperial Tobacco, Philip Morris International, and British American Tobacco to shift their focus toward the development of these products.
HnB Devices Market - Brief Analysis
The increasing demand and the potential growth of the vapor products market can be estimated through the case of Philip Morris. The company launched its first HnB device, iOQS, in Japan for pilot testing. Due to its high popularity, iQOS was launched nationwide in Japan in 2016 and became an immediate sensation in the HnB tobacco vapor market in Japan. As of November 2017, the penetration of iQOS in the Japanese tobacco market reached 11.9%. It also made its way into markets in 31 countries worldwide, with Japan being its largest market. According to Philip Morris, over 3.7 million consumers have already switched to iQOS globally.
Vapor Products Market Segmentation
This market research report includes a detailed segmentation of the market by products, by distribution channels, and by geography.
Vapor Products Market - By Products
Global vapor products (e-vapor and heat-not-burn (HnB) Devices) market expected to grow at a faster pace over the next few years.
E-vapors or e-cigarettes are electronic nicotine delivery systems that heat liquid nicotine or flavored juices to create inhalable vapor. These devices are categorized into cig-a-likes, closed tanks systems, and open tanks systems. The availability of these products will boost the sale in the vapor products market.
HnB tobacco vapor systems heat tobacco instead of burning them. They are commonly cited as the next-generation products in the tobacco market and are segmented into direct and indirect heating devices and infused/hybrid systems, based on the way the nicotine is delivered to end-users. This product category also has an aftermarket consisting of products such as tobacco sticks, tobacco capsules, and tobacco cartridges.
Vapor Products Market - By Distribution Channels
Online sales to increase significantly due to availability of more choices to consumers than retail stores.
E-vapor and HnB tobacco vapor products are mainly sold through retail distribution channels such as convenience stores, vape shops, tobacco shops, grocery shops, drug stores, and other retail outlets. These products are also available to end-users through online OEMs' e-commerce portals and online direct-to-consumer stores such as Amazon, eBay, Alibaba, and AliExpress. Retail sales constitute the bulk of the distribution model in the e-cigarette market.
Therefore, analysts forecast online sales in the vapor products market to increase significantly during the next five years on account of more choices available online as compared to retail stores.
Vapor Products Market - By Geography
APAC expected to be the largest potential retail market by 2023.
In 2017, North America was the largest e-vapor and HnB tobacco vapor product market globally. The popularity of vapor products in the US and Canada is increasing rapidly due to the easy availability of vapor products in vape shops and over the Internet. However, the FDA regulations pose a significant threat to the vaping industry in North America.
E-vapor and HnB devices are gaining popularity in many Asian countries such as China, Japan, South Korea, and Malaysia. Driven by rapid urbanization, increasing per capita disposable income, availability of low-cost vapor products, advancements in vendor products technology, and increase in the number of smokers in the region. APAC is expected to be the largest potential retail market during the forecast period.
Europe, led by the UK, in spite of losing share to the rapidly growing market in North America during the forecast period, is expected to account for more than 30% of the market share by 2023.
The sales of e-vapor products are restricted in several countries in MEA and Latin America such as Saudi Arabia, Brazil, and Argentina.
Market Growth Enablers
Increase in Awareness and Change in Consumer Perception
Growth of Distribution Networks
Increased Marketing and Promotion Efforts
YOY Impact of Market Growth Enablers
YOY Impact of Market Growth Enablers on Geographies
Market Growth Restraint
Stringent Government Regulations
Increased Concern over Vaping Effects on Health
Increased Market Competition
The major vendors in the global market are as following
British American Tobacco
Japan Tobacco International
Philip Morris International
Historical Year 2015-2016 Base Year 2017 Forecast Year 2018-2023
The report considers 2017 as the base year. All calculations involving quantitative data are based on the year 2017. The values represented in the report are actual values for 2017, whereas, the values are estimated for the 2018-2023 period.
Market Segmentation by Distribution Channel
Market Segmentation by Product Category
Closed Tanks Systems
Heat-not-Burn (HnB) Tobacco Vapor Products
HnB Tobacco Vapor Product Aftermarket
Key Topics Covered:
1 Research Methodology
2 Research objectives
3 Research process
4 Report Coverage
5 Report Assumptions & Caveats
6 Market at a Glance
8 Market Dynamics
9 Value Chain Analysis
10 Global E-Vapor and HnB Tobacco Vapor Market
11 Market By Product Segmentation
12 Global E-Vapor Market
13 Heat-bot-burn (HnB) Tobacco Vapor Market
14 Market by Distribution Channel
15 Geographical Segmentation
16 North America: E-Vapor and HnB Tobacco Vapor Market
17 APAC: E-vapor and HnB Tobacco Vapor Market
18 Europe: E-vapor and HnB Tobacco Vapor Market
19 MEA: E-vapor and HnB Tobacco Vapor Market
20 Latin America: E-vapor and HnB Tobacco Vapor Market