The global vape market would realize an absolute growth of 590% – a phenomenal leap of over $49 billion revenue between 2015 and 2025.
Buoyed by a growing shift in preferences for next-generation smoking products and the demand for HnB tobacco among smoking population, the overall revenue of vape products will reach over $57 billion by 2025.
Registering a high growth CAGR of about 6% during 2019-2025, the global market for e-vapor accounted for a majority share in 2019. However, HnB products are set to displace e-vapor products by 2022.
Contributing over 55% of the market revenue in 2019, the US, Japan, & South Korea, offer lucrative market potential for vapor products' vendors.
Decades-old established distribution networks of tobacco products has helped Big Tobacco companies to gain an upper hand over pure-play companies. However, small vape and tobacco shops continue to dominate with about 34% share of the retail markets worldwide.
Market Size & Forecast by Revenue | 2019−2025
Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
Market Segmentation – A detailed analysis by E-vapor, HnB tobacco, distribution, and geography
Competitive Landscape – Profile of 5 key vendors and 28 other vendors
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).
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.
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.
Market Segmentation by E-vapor
Open Tanks Systems
Closed Tank Systems
Market Segmentation by HnB Tabacco
Tobacco Capsules and Cartridges
Market Segmentation by Distribution
Vape Market – Dynamics
The vapor product market is witnessing the introduction of many new varieties of flavors in e-cigarettes, VTMs, and personal vaporizers. Vapor products are marketed as potentially less harmful products than tobacco cigarettes and are more economical because of their low cost. The popularity of vape shops in tier I and tier II cities has boosted the demand for a variety of e-juices with different flavors such as chocolate, mint, menthol, watermelon, and pink bubble gum, among others. Currently, studies reveal that there are more than 8,000 different flavors of e-juices available in the global market with over 100 flavors being added every month in the US alone. Vendors are introducing new varieties to attract new customers. For instance, VPR Brands, a leading e-cigarette manufacturer introduced new HELIUM brand e-liquid in the US, the UK, and Chinese markets in July 2019.
Key Drivers and Trends fueling Market Growth:
Shifting Consumer Perception of Smoking Combustible Cigarettes
Growing Distribution Network
Shift from Smoking toward Vaping
Increasing Marketing & Promotional Efforts
Vape Market – 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. The tremendous popularity of VTMs and the availability of low-cost vaping devices in these regions will help North America to dominate the market during the forecast period. With retail giants such as Wal-Mart, Kroger, and Costco stocking vapor products, these products are increasingly witnessing a surge in their popularity in the region. Apart from mass distributors, tobacco shops, grocery shops, drug stores, online channels are also offering vapor products in the region. These factors are expected to drive the vape market revenue.
Arizton – Advisory and Intelligence is an innovation and quality-driven firm, which offers cutting-edge research solutions to clients across the world. We excel in providing comprehensive market intelligence reports and advisory and consulting services.
We offer comprehensive market research reports on industries such as consumer goods & retail technology, automotive and mobility, smart tech, healthcare, and life sciences, industrial machinery, chemicals and materials, IT and media, logistics and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.
Arizton comprises a team of exuberant and well-experienced analysts who have mastered in generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.