Global E-cigarettes Market to Predicted to Reach $27.3 Billion by 2027
According to a new study by Joymy, the global e-cigarette and vape market is expected to reach $27.3 billion by 2027, growing at a CAGR of 8.7% from 2022 to 2027. Age groups are increasing the demand for e-cigarettes and e-cigarette products that are relatively less toxic. Advances in e-cigarette technology, coupled with the availability of various types and e-liquid flavors of e-cigarettes, particularly allowing customers to choose the device and flavor of their choice, are contributing to the growth of the market. Increasing awareness about safer alternatives to tobacco consumption has spurred the adoption of e-cigarettes across the world.
Technological advancements have allowed the development of high-capacity e-cigarettes capable of producing large amounts of vapor and flavors, thus enhancing the preference of vapor enthusiasts. E-cigarettes have helped a large number of smokers quit, making e-cigarettes a viable option for smoking cessation. In addition, ex-smokers believe that using e-cigarettes has improved their breathing. The increasing popularity of e-cigarettes has been aided by the rising price of regular cigarettes. The e-cigarette industry has been stifled by strict legislation in several countries. However, sales of e-cigarettes continue to grow due to the growing popularity of the technology.
Rising awareness of consuming smoke-free, safe, and ashless tobacco is expected to drive market growth. The push for COVID-19-based marketing strategies and sales through digital channels is estimated to drive market growth in the post-COVID-19 pandemic era. Moreover, there is a growing awareness that e-cigarettes are an effective way to quit smoking as they are less toxic and produce vapor rather than smoke. As a result, adoption of vape devices is expected to increase over the forecast period, especially among individuals who smoke for recreational purposes and smokers who are committed to quitting altogether.
As a result of the COVID-19 pandemic, the number of indoor smokers has increased in several countries/regions around the world. However, e-cigarette stores remained open during the embargo in countries such as Italy. To capitalize on the growing demand for e-cigarette products, many vendors implemented novel marketing strategies and sold their wares through online platforms.
The U.S. e-cigarette market size is estimated at $4.7 billion by 2020. The country currently accounts for 33.72% of the global market. China, the world's second largest economy, is expected to reach a market size of $5.9 billion in 2027, growing at a CAGR of 9.6% through 2027. Other notable e-cigarette markets include Japan and Canada, each with a projected growth rate of 7.6% % and 6.9% respectively for the period 2020-2027. In Europe, Germany is expected to grow at a CAGR of approximately 6.7%, while the rest of the European markets (as defined in the study) will reach $5.6 billion by 2027.
In the global disposables segment, the U.S., Canada, Japan, China and Europe will drive the segment's estimated CAGR of 8.7%. These e-cigarette markets will have a combined market size of $1.3 billion in 2020 and are expected to reach $2.2 billion by the end of the analysis period. China will continue to be one of the fastest growing countries in this regional market cluster. Led by countries such as Australia, India and South Korea, the Asia-Pacific market is expected to reach $2.8 billion by 2027.