E-cigarette Market in the US 2015-2019

E-cigarette Market in the US 2015-2019

Market analysis of e-cigarettes

Technavios market research analyst predicts the e-cigarettes market in the US to grow at a CAGR of around 33% during the forecast period. The increased desire among consumers to quit smoking tobacco is the primary driver for the growth of this market. For instance, according to the US government, approximately 480,000 people die in the country every year due to active smoking. E-cigarettes are considered a healthier alternative to tobacco smoking, and, therefore, are becoming popular among end-users.


The low cost of e-cigarettes is also expected to contribute to the growth of the market during the forecast period. E-cigarettes are cheaper than traditional cigarettes due to the lack of legitimate taxation on their sale. The wholesale price of a disposable e-cigarette is between USD 2.5 and USD 4.0, whereas rechargeable e-cigarette costs between USD 6 and USD 15.

Segmentation by distribution and analysis of - online, retail

The retail segment dominated the market during 2014 with a market share of 72%. The retail segment comprises of convenience stores, grocery shops, tobacco shops, pharma, and other non-tracked channels. Some of the popular retail outlets for e-cigarettes are Wal-Mart, Tesco, and Sainsbury's.

The report offers an analysis of each of the following segments and discusses its impact on the overall market growth -

Online
Retail
Product segmentation and analysis of cigalikes, second and third generation e-cigarettes

Cigalikes dominated the market during 2014 with a market share of 63%. However, this research report predicts the market to witness an increase in demand for second and third-generation e-cigarettes during the forecast period.

The report offers an analysis of each of the following segments and discusses its impact on the overall market growth -

First-generation e-cigarettes/cigalikes
Second-generation e-cigarettes
Third-generation e-cigarettes
Competitive landscape and key vendors - Altria, NJOY, Reynolds American, Imperial Tobacco

The e-cigarette market in the US is highly fragmented due to the presence of numerous vendors operating and selling e-cigarettes under different brand names across the country. There is intense competition among the vendors for the market share. The report predicts the market to witness increased consolidation and a rise in the influx of private labels during the forecast period.

The leading vendors in the market are -

Altria Group
CB Distributors
Imperial Tobacco
LOGIC Technology
NJOY
Reynolds American
Other vendors in the market include Ballantyne Brands, British American Tobacco, FIN Branding, Gamucci, Japan Tobacco, Nicotek, RRR Chemicals, Vapor, Victory Electronic Cigarettes, VMR Products, and White Cloud.

Key questions answered in the report include

What will the market size and the growth rate be in 2019
What are the key factors driving the e-cigarettes market in the US
What are the key market trends impacting the growth of the e-cigarettes market in the US
What are the challenges to market growth
Who are the key vendors in the e-cigarettes market in the US
What are the market opportunities and threats faced by the vendors in the e-cigarettes market in the US
What are the key outcomes of the five forces analysis of the e-cigarettes market in the US
Technavio also offers customization on reports based on specific client requirement.

Related reports

Global E-cigarette Market 2015-2019

Global Cigarette Market 2015-2019

Global Li-ion Battery Market for E-cigarettes 2015-2019

Li-ion Battery Market for E-cigarettes in the US 2015-2019

Press Release

Technavio Announces the Publication of its Research Report E-cigarette Market in the US 2015-2019

Technavio recognizes the following companies as the key players in the E-cigarette Market in the US: Altria Group, CB Distributors, Imperial Tobacco, LOGIC Technology, NJOY and Reynolds American

Other Prominent Vendors in the market are: Ballantyne Brands, British American Tobacco, FIN Branding, Gamucci, Japan Tobacco, Nicotek, RRR Chemicals, Vapor, Victory Electronic Cigarettes, VMR Products, and White Cloud.

Commenting on the report, an analyst from Technavios team said: The e-cigarette market in the US has many opportunities for mergers and acquisitions by large vendors who are aiming to enhance their market presence and market potential. Many vendors are expected to acquire small and domestic suppliers during the forecast period to increase their market shares, which will enhance their distribution channels and improve their market reach.

According to the report, the sales volume of traditional cigarettes has declined with an increase in the sales of e-cigarettes. The majority of the global players in the tobacco industry witnessed a decline in the shipment of traditional cigarettes in 2014. An increasing number of deaths caused by smoking-related cancers has propelled people to stop smoking traditional cigarettes.

Further, the report states that the price of high-quality e-cigarettes is increasing as a result of the increase in the prices of raw materials and the demand for good-quality e-liquids. The introduction of different flavors and new-generation e-cigarette devices are further expected to increase their prices in the future. Several vendors are trying to provide these products at low prices to gain market share. However, this will affect vendors' profit margins in the long run.

Companies Mentioned

Altria Group, CB Distributors, Imperial Tobacco, LOGIC Technology, NJOY, Reynolds American, Ballantyne Brands, British American Tobacco, FIN Branding, Gamucci, Japan Tobacco, Nicotek, RRR Chemicals, Vapor, Victory Electronic Cigarettes, VMR Products, White Cloud.