E-Cigarette and Vaping Market By Product (Rechargeable, Disposable, Modular, Modular, and Others), Distribution Channel (Online, Retail Store, & Specialty E-cigarette Store), and Components (Atomizer, Vape Mod, Cartomizer, E-Liquid, and Others), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023-2032

Market Perspective

The global E-Cigarette and Vaping Market size was worth around USD 21.82 billion in 2022 and is projected to reach a valuation of USD 148.58 billion by 2032 at a CAGR of 21.15% between 2023 and 2032.

The e-cigarette and vaping market is expected to grow as research continues to show that they are a safer alternative to traditional cigarettes. This increased awareness, particularly among younger individuals, is driving market expansion. Additionally, the wide range of customization options offered by manufacturers, such as temperature control and nicotine levels, is also contributing to increased demand for e-cigarettes.

Furthermore, new technologies such as pod systems and squonk mods are gaining popularity among users. E-cigarettes are battery-operated devices that vaporize a mixture of glycerin, nicotine, and flavorings for the user to inhale. They come in a variety of flavors and emit substantially lower levels of carcinogens than traditional cigarettes, making them a less harmful option for smokers.

The e-cigarette and vaping market share is experiencing significant growth as more and more smokers become aware of the health risks associated with traditional tobacco cigarettes. These products emit a variety of toxins that can have detrimental effects on a smoker's health. In contrast, e-cigarettes are considered to be a safer alternative as they emit substantially lower levels of harmful substances.

For example, British American Tobacco has developed the Vype iSwitch Maxx and Vype iSwitch using Puretech blade technology, which uses an ultra-thin stainless steel blade to heat e-liquid and produce vapor, the vapor produced by such products contains significantly lower quantities of carcinogens than the smoke produced by burning tobacco. As a result, e-cigarettes are considered to be a less risky option for smokers.

Key Insights

• Based on product, the rechargeable segment held the largest market share
• Based on distribution channels, the retail store segment dominated the market
• Based on components, the atomizer segment generated the highest revenue
• On the basis of region, North America accounted largest market share

Countries Banning E-cigarette and Vaping Products is Acting as a Challenge for the Market Growth

E-cigarettes and vaping devices that come in various flavors, produce unique aromas that appeal to consumers. The cost-effectiveness of these devices has also improved, which has led to increased customer acceptance and is driving the market growth. In North America and Europe, sales of atomizers and e-liquids have seen a significant increase due to the growing demand. The approval of electronic cigarettes by many nations, particularly the United Kingdom, has also contributed to the growth of the industry.

Furthermore, the establishment of vape shops, where customers can try out different devices and e-liquid flavors before making a purchase, has also played a role in the industry's expansion. In the United Kingdom, tank e-cigarettes remain the most popular device type.

Increasing Government involvement in Banning E-Cigarettes is Restraining the Market Growth

The expansion of the e-cigarette and vaping market is being hindered by the increasing number of government regulations and bans on e-cigarettes. To protect young people and children from the potential harm and addiction associated with e-cigarettes, many nations have enacted laws prohibiting the sale and production of e-cigarettes. In January 2020, the U.S. Food and Drug Administration (FDA) announced a policy targeting e-cigarette flavors that are attractive to youth, such as fruit and mint.

According to this regulation, businesses that continue to produce, distribute, and sell unlicensed e-cigarettes with flavors other than tobacco or menthol within 30 days, are subject to FDA enforcement measures. The government has banned e-cigarettes because of the way they were marketed by manufacturers as a tool to help people quit smoking, despite the fact that research has shown that the majority of people are becoming addicted to them.

Recent Development

In June 2022: Liberty Flights Holdings was acquired by Supreme Imports Ltd., a British company that manufactures electronic cigarettes. With this acquisition, Supreme Imports Ltd. aims to increase the variety of vaping products that it now offers. Liberty Flights Holdings is a manufacturer of premium vaping gadgets and e-liquid situated in the United Kingdom.

In August 2021: Philip Morris International Inc. announced the launch of IQOS ILUMA in Japan. The newly released IQOS ILUMA was the first tobacco-heating device from the company to utilize induction-heating technology. This method does not require the use of a blade and does not need to be cleaned.

Segmentation Analysis

The global e-cigarette and vaping market report is segmented based on product, distribution channel, and components.

Based on Product, the market is divided into rechargeable, disposable, modular, and others. The rechargeable segment dominates the market due to its cost-effectiveness and the ability to eliminate the need for continuous supply purchases, such as cartridges. Additionally, consumers who prefer to produce their own e-liquid can avoid buying pre-filled cartridges, making it an economical option for seasoned smokers. E-cigarettes that are rechargeable and can be charged through a USB connection are gaining popularity among young people in several major nations, as they produce less smoke and can be charged using a USB port.

Based on Distribution Channel, the market is divided into Online, Retail Store, and Specialty E-cigarette stores. The retail segment dominates the market as e-cigarettes were once sold at retail outlets such as gas stations and vape shops. These establishments helped customers choose from a variety of equipment and e-liquids. The fact that vape shops allow customers to try out and test these devices before making a purchase decision is helping the growth of the retail store category throughout the forecast period. The Retail Store market segment is expected to have a significant share of the global market due to its eco-friendly operations, less complicated method.

Based on Components, the market is divided into Atomizers, Vape Mod Cartomizers, E-Liquid, and Others. The Atomizer segment dominates the market share. An e-cigarette is made up of an atomizer, a battery, and an inhaler that simulates tobacco smoking without the inhalation of smoke. The device is filled with a nicotine-free liquid solution or nicotine-containing liquid which is heated and turned into vapor before inhalation. It is considered to be less harmful than traditional cigarettes. This device has been recognized as a viable alternative to traditional cigarettes due to its zero pollution, zero-smoke, reduced health-related issues, and public smoking capability. The growth of the market is driven by the increased awareness of the harmful effects of traditional cigarettes, reduced absorption of carbon monoxide and tar by electronic cigarettes, and technological advancements by electronic cigarette manufacturers.

North America is Dominating the Market Share Due to Significant Business Leaders

E-cigarettes and vaping products have become popular on social media platforms, thanks to the presence of influential business leaders like R.J. Reynolds. Young people are increasingly turning to vaping as a safer alternative to cigarettes, leading to predictions of rising usage. However, the recent ban on many e-cigarette flavors in the United States, particularly fruit and mint flavors, may impede market growth in the region.

The majority of e-cigarettes are imported from countries such as China and are commonly purchased in bulk through online platforms. This is expected to drive market growth in the Asia Pacific region. With over 3,000 flavors already available, and new ones being introduced regularly, the variety of options continues to grow. Nicotine-free e-liquids are also becoming more popular, particularly among professional vapers who prefer the refined vapor they produce. Additionally, the perception that vaping is fashionable also contributes to the growing demand for e-cigarettes.

Competitive Landscape

• Altria Group, Inc.
• Reynolds American Inc.
• NICQUID
• J. Reynolds Vapor Company
• Imperial Brands plc
• JUUL Labs Inc.
• British American Tobacco Inc.
• Philip Morris Products S.A.
• Japan Tobacco Inc.
• Shenzhen IVPS Technology Co., Ltd.

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

By Product

• Rechargeable
• Disposable
• Modular
• Others

By Distribution Channel

• Online
• Retail Store
• Specialty E-cigarette Store

By Components

• Atomizer
• Vape Mod
• Cartomizer
• E-Liquid
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
• Benelux Reunion
  • • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of 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