The global vape market is expected to grow at a CAGR of over 14% during the period 2019-2025
NEW YORK, March 4, 2020 /PRNewswire/ --
The global vape market is expected to grow at a CAGR of over 14% during the period 2019–2025.
Read the full report: https://www.reportlinker.com/p05868637/?utm_source=PRN
The vape market is witnessing a shift from smoking to vaping. Veteran vapors and heavy smokers have started to switch to bulky vapor mods. It is expected that the vapor products market would be driven further by VTMs and personal vaporizers during the forecast period. Disposables and rechargeable e-cigarettes are witnessing a decline in their revenue as well as popularity worldwide as VTMs offer flexibility in terms of filling e-juices and are proving cost-effective in the long run. Unlike disposables and rechargeable e-cigarettes that can be refilled only with the company's own brand of cartridges, VTMs, and personal vaporizers can be refilled with e-juices produced by any company. Hence, vaping is substantially cost-effective in the long run than traditional tobacco cigarettes and disposables/rechargeable e-cigarettes, which is expected to affect the market during the forecast period.
Another important reason for the popularity of vapor products is the availability of different flavors in the market. The market has been witnessing the introduction of new flavors and their blends regularly, which, in turn, has been driving the growth. However, e-liquids with flavors of fruits, beverages, and sweets have been gaining share over traditional tobacco flavor. Further, many countries, such as Australia and Canada have banned nicotine-loaded vapor products. Thus, e-liquids with a variety of flavors containing zero nicotine have become popular among vapers.
The following factors are likely to contribute to the growth of the vape market during the forecast period:
• Shift from Smoking toward Vaping
• Increased Market Consolidation
• Increasing Availability of Variety of E-juices
The study considers the present scenario of the vape market and its market dynamics for the period 2019?2025. It covers a detailed overview of several market growth enablers, restraints, and trends. The study offers both the demand and supply aspects of the market. It profiles and examines leading companies and other prominent companies operating in the market.
Vape Market: Segmentation
This research report includes a detailed segmentation by E-vapor, HnB tobacco, distribution, and geography. E-liquids were the largest revenue-generating product category of the global vape market in 2019. The major reason behind high market shares can be attributed to the increased proliferation of Vapor/Tank/Mods (VTM). North America is expected to hold the largest share during the forecast period due to growing technological advancements, developed GDP, increasing manufacturers, and rising demand for e-liquid from this region is surging the growth.
Open tanks systems started to gain popularity among end-users in 2014 when the global e-vapor market faced an influx of private label products, and vaping enthusiasts started demanding strong vaping experience. However, VTMs are more prevalent in European countries such as Italy, France, Spain, Germany, and the UK, where the penetration has crossed 50% mark. The existing demand in the US, Italy, and the UK, along with growing demand from Poland, China, and Russia, will propel the growth during the forecast period.
Cig-a-likes are the first generation of e-cigarettes designed to mimic traditional cigarettes. The advent of closed tanks systems and VTMs has affected the sale of cig-a-likes since 2014. Further, a weak battery power, along with low vapor-producing capacity, leads to dissatisfaction among end-users. Thus, the demand started to decline. However, with the introduction of modern-day cig-a-likes such as the one by V2 Cigs (V2 Cigs EX series), cig-a-likes are started to witness growth.
The HnB market is growing rapidly across the globe. APAC is the largest market for HnB products, followed by Europe. The APAC region enjoys a larger share because of the large smoking population and continuous shift toward smoking innovative products. Besides, South Korea, Italy, Russia, and the Czech Republic are the robust market for heat-not-burn products. HnB products are getting popular with the shift in social culture and increasing health consciousness among people. The rise in demand for these products has enabled companies to bring innovations in products and spend more on promotion. The industry is also growing quickly in Europe, especially the UK, Italy, Poland, and France. The market value of heat-not-burn products is expected to grow twice in Western Europe than Eastern Europe. Although the heat not burn market share is minuscule compared to cigarettes, they are expected to witness significant growth during the forecast period. The market size for HnB tobacco consumables is expected to grow at a CAGR of over 20% during the period 2019–2025.
The distribution environment is rapidly evolving, with systems and processes being upgraded at a rapid pace. Changes are spurred by expanding competition, accelerating digitization, constant disintermediation, and consumerization of expectations. B2B commerce is witnessing the increase in expectations that are associated mainly with B2C, such as transparent pricing and communities and social connections. This is expected to continue during the forecast period the focus on lowering costs, improving efficiencies, and opening up to new opportunities. With the vapor products market being highly consumer-and community-centric, distributors are increasingly focusing on extending their reach to vape stores and local outlets. E-vapor products are also available to end-users through online OEMs' e-commerce portals and online direct-to-consumer stores. In 2019, retail sales constituted over 70% of the distribution model, and online stores constituted the rest. The increased demand from retailers, dealers, and consumers for a multi-channel approach and support is driving the growth of the segment.
Market Segmentation by E-vapor
• E-liquids
o Pre-filled Cartridges
o Refill Bottles
• Open Tanks Systems
• Closed Tank Systems
• Cig-a-likes
o Disposables
o Rechargeables
• Consumables
o E-cigarettes Batteries
o Atomizers/cartomizers/clearomizers
Market Segmentation by HnB Tabacco
• HnB Devices
o Direct/Indirect Heating
o Hybrid/Infused
• HnB Consumables
o Tobacco Sticks
o Tobacco Capsules and Cartridges
Market Segmentation by Distribution
• Retail
o Convenience Stores
o Vape Stores
o Tobacco Stores
o Grocery Stores
o Drug Stores
o Others
• Online
Insights by Geography
The global vape market is growing at a tremendous rate. The US vapor market is consistently increasing after the authorization of the sale of HnB products by the FDA in the country. This is expected to help North America to increase its share as smokers in the US are becoming health conscious. One of the major influencing factors propelling growth is the increasing availability of vapor products in vape shops and over the internet.
Europe captures more than a 33% share of the revenues. Poland, Germany, Italy, Russia, and the Czech Republic are the major contributors to the European market. Poland has been witnessing tremendous growth, with the revenue increasing from $130 million in 2014 to $542.6 million in 2016. The growth can be attributed to heavy taxation on traditional tobacco cigarettes and the presence of low-cost vapor products in the country.
The popularity of vapor products in the Middle East and Africa is low. However, large tobacco companies are using their worldwide retail outlets to enter the markets to exploit the untapped potential. Latin America has a low penetration of HnB and vaping products due to rigid government regulations. In countries such as Uruguay, Paraguay, Chile, Brazil, Argentina, Colombia, Mexico, Venezuela, and Panama have put a complete ban on the sale of e-cigarettes. However, large tobacco companies are investing in several regions, such as Paraguay, Chile, and Brazil, to expand their presence. Thus, the increased awareness of vapor products in the market and the expansion of large tobacco companies are expected to drive revenues in the region.
Market Segmentation by Geography
• Europe
o UK
o Poland
o France
o Spain
o Italy
o Germany
o Russia
o Romania
o Czech Republic
• APAC
o China
o Japan
o South Korea
o Australia and New Zealand
o Malaysia
• North America
o US
o Canada
• MEA
o Egypt
o South Africa
o UAE
• Latin America
Insights by Vendors
The competitive scenario in the global vape market is currently intensifying. The rapidly changing technological environment could adversely affect vendors as continual innovations and upgrades are the characteristics of this market. The present scenario is driving vendors to change and refine their unique value proposition to achieve a strong presence. The market is highly fragmented, with over 300 vendors that operate and sell e-cigarettes under different brand names across the world. Before the entry of major tobacco players in the vaping domain, small companies are engaged in the supplying e-cigarettes. The entry of large tobacco companies poses a significant threat to small vapor products' vendors. Large companies such as Philip Morris International, Altria Group, British American Tobacco, Imperial Tobacco, and Japan Tobacco International are all set to explore the market worldwide.
Key Vendors
• Altria Group
• British American Tobacco (BAT)
• Imperial Brands
• Japan Tobacco International (JTI)
• Philip Morris International (PMI)
Other Vendors
• RJ Reynolds Vapor Company (RJRVC)
• Ballantyne Brands
• CB Distributors
• ECIG (Formerly known as Victory Electronic Cigarettes)
• Gamucci
• Gilla
• International Vapor Group
• Joyetech Co.
• KangerTech Technology
• Mainstream Cannabis Innovations Group (mCig Group)
• Nicotek
• NJOY
• PAX Labs
• RR Chemicals
• Totally Wicked E-liquid
• Vape Holdings
• Vapor Hub International
• VPR Brands
• White Cloud (Leads by Sales)
• XEO International
• KT&G (Korea Tomorrow& Global Corporation)
• Shenzhen AVBAD Technology Company Ltd.
• Vapor Tobacco Manufacturing
• Shenzhen Royal Tobacco Industrial Limited (Royal Tobacco)
• Jouz
• Shenzhen Yukan Intelligent Technology Co. Ltd.
• Sichuan China Tobacco Industry Co. Ltd.
• Marvel International Tobacco Group
Key Market Insights
The analysis of the vape market provides sizing and growth opportunities for the forecast period 2020–2025.
• Offers sizing and growth prospects of the market during the forecast period
• Provides comprehensive insights on the latest industry trends, forecast, and growth drivers in the market
• Includes a detailed analysis of growth drivers, challenges, and investment opportunities
• Delivers a complete overview of segments and the regional outlook of the market
• Offers an exhaustive summary of the vendor landscape, competitive analysis, and key strategies to gain competitive advantage
Read the full report: https://www.reportlinker.com/p05868637/?utm_source=PRN
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