E-cigarette Market The market was valued at USD 7.12 billion in 2016. The market is expected to reach USD 27.42 billion by 2022, at a CAGR of 25.20% over 2017-2022 (the forecast period).
E-cigarettes or electronic nicotine delivery systems (ENDS) are tobacco-free devices that are used as a substitute for smoking and recreational purposes. The E-cigarettes market has shown a significant growth in the last decade, owing to the increasing health concerns over the usage of conventional tobacco-based products like cigarettes. Awareness programs by social groups and government initiatives are leading consumers to opt for E-cigarettes over conventional tobacco cigarettes. The availability of a wide range of flavors, coupled with low levels of toxicity has attracted a lot of customers over the years. With the growing availability of the devices and many countries regulating the use of E-cigarettes, the market is projected to witness healthy growth over the coming years.
GROWING HEALTH AWARENESS EXPECTED TO DRIVE THE E-CIGARETTE MARKET
Tobacco has been identified to be one of the primary causes of preventable deaths in the United States, according to the Center for Disease Control and Prevention. As of 2015, more than 16 million Americans were expected to suffer from diseases caused by smoking. While an estimated 6 million deaths caused by tobacco use are reported every year, the number is expected to reach 8 million by 2030. With health concerns related to smoking, the tobacco smoking population in many economies is looking for alternatives, thereby, driving the E-cigarette market. E-cigarettes are considered to be less toxic than conventional tobacco cigarettes, by a large share of the population. The consideration has made E-cigarettes a viable alternative to conventional cigarettes.The reduced toxicity levels, coupled with cost effectiveness, is driving the E-cigarette market in many regions.
COMPLETELY DISPOSABLE MODEL TO WITNESS AN INCREASE IN ADOPTION RATE
The disposable models of E-cigarettes are reasonably affordable and are considered to be beneficial in the long run. Disposable E-cigarettes offer the same emanation as traditional tobacco cigarettes at similar costs, thus making it an economical solution. With companies launching new products in disposable models that offer benefits similar to regular E-cigarettes (like using different flavors, adjusting the nicotine strength, etc.), the launch is expected to drive the growth of the disposable E-cigarette market in the forecast period.
BAN IN LATIN AMERICA HINDERS THE GROWTH OF THE E-CIGARETTE MARKET
Countries like Argentina, Venezuela, Panama, and Mexico have banned the sale of E-cigarettes.The Venezuelan government has imposed extremely high penalties on organizations selling, distributing, and promoting E-cigarettes in the country. Panama has adopted some of the stringent smoking laws in the world and became the first country in Latin America to ban the advertising, promotion or sponsorship of tobacco products. Many governments have issued regulations that need companies to cover 60% of tobacco packaging with health warnings. The stringent regulations against E-cigarettes and their ban in most of Latin America are hindering the consumption ofE-cigarettes in many markets.
BRITISH AMERICAN TOBACCO TO ACQUIRE REYNOLDS AMERICAN INC.
British American Tobacco has offered to buy out Reynolds American Inc. for USD 47 billion, in an attempt to gain a strong presence in the United States, which is considered to be a lucrative market. As traditional smoking fades, the sales of E-cigarettes are booming in the United States. The acquisition is expected to create the world's largest publicly-traded tobacco company.
PHILIP MORRIS INTERNATIONAL INC. (PMI) INAUGURATED ITS MANUFACTURING FACILITY IN ITALY
Philip Morris International Inc. inaugurated the first manufacturing facility for the large-scale production of heated tobacco products in September, 2016, with an investment of approximately USD 593 million. With this development, PMI hoped to lead a full-scale effort to ensure that non-combustible products ultimately replace cigarettes for the benefit of adult smokers.
WHAT THE REPORT OFFERS
Study of the effect of exogenous and endogenous factors, viz. demographic, economics, and political factors, among others, which affect the global market Porter’s five forces framework incorporating the factors influencing each force to determine the intensity of competition Segment and sub-segment level analysis of the market over the review and forecast period Identification of key factors instrumental in changing the market scenario, exploiting new opportunities, and gaining a competitive edge Analysis ofthe key players and a detailed study of the current strategic interests and key financial performance indicators Our report on the global E-cigarette market covers the following:
Market Trends and Dynamics Latest News and Developments Porter’s Five Forces Analysis Investment Scope Deep-dive Insights