Global Tobacco Key Findings Part 2: Vapour Products

Despite significantly more sober growth rates, the vapour products category still achieved double digit expansion in 2015 to reach a global market size of US$8 billion. Looming challenges can no longer be ignored however as - in the context of moderating consumer uptake on the back of confused public messaging and technological fragmentation - major legislation in the EU and FDA promises to increase regulatory burdens and reshape markets worldwide.




Background and Key Findings

Euromonitor International the first to estimate realistic market size

Research methodology

Vapour products timeline

Headlines for 2015

Category size and growth comparisons 2010-2015

Vapour size and growth category outlook 2015-2020

E-cigarette price advantage versus cigarettes

Relative size of vapour to other tobacco products

Is vapour hurting NRT?

User growth slows (before it takes off again?)


Geographic Focus

Geographic spread of e-cigarettes

Where vapour growth came from in 2015

US: Sales strong but regulatory uncertainty pervades

UK: Official attitude begins to turn strongly positive

Italy: Strong demand for vapour but taxation impacts market

Malaysia: A tale of impaired promise

Poland’s affair with e-cigarettes in danger of stagnating


Channel Focus

Global distribution diversifies but online growing share

The online channel

Subscription model begins to take hold

Vape stores: Central to sales and identity



Key trends in the new realm of nicotine regulation

Mainstream consumers discouraged by inconsistent messaging

Global overview of e-cigarette regulation 2016

EU Tobacco Products Directive redefines vapour in the EU

Some EU member states decide to end online sales

FDA deeming regulation threatens to reshape US market

Classification based on nicotine content

What impact would e-cigarette taxation have?


Companies and Innovation

E-cigarette landscape dominated by non-tobacco players

Tobacco players and their vapour brands

World cig-a-like innovations: Top trends

Cig-a-like segment badly needs to expand its horizons

World tank system innovations – top trends

Substantial activity in closed tanks expected

Is tank system innovation consumer-focused?

World e-liquid innovations: Top trends

Heat-not-burn warming up but question marks remain

PMI’s iQOS - forging a path ahead for tobacco players?

Marijuana vaporisation grows in parallel


The Future

Some future vapour scenarios rated by likelihood

Future choices to be made on technology

Cautioned required in estimating future market size


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