E-cigarettes: Key market research findings
- Increasing awareness about safer alternatives to smoking drives market growth
- North America is the dominant shareholder in the market
- Key vendors – Reynolds American, Imperial Brands, Altria Group, NJOY, and British American Tobacco
Technavio’s market research analysts predict the global e-cigarette market to grow at a CAGR of more than 23% over the forecast period. The increasing popularity of e-cigarettes as a safer alternative to tobacco smoking is the fundamental driving force behind growth in this market. Since e-cigarettes deliver nicotine without burning tobacco, they are believed to be a safer and less toxic alternative to conventional cigarettes. This has pushed several smokers to opt for e-cigarettes. During 2015, North America dominated the global e-cigarette market by accounting for a market share of almost 41%. The high popularity of disposable e-cigarettes, their increased availability in the retail stores and online channels, and rapidly growing demand from youth population are the factors augmenting the growth of the e-cigarette market in North America.
The new market research report from Technavio presents a breakdown and analysis of the e-cigarette segments based on the product.
“The projected increase in the price of e-cigarettes is the latest trend in the global e-cigarette market. The EU has proposed taxing e-cigarettes similar to tobacco cigarettes. The plan addresses the elimination of inconsistencies in the single market rules in the taxation of e-cigarettes and tobacco products. If approved, these regulations will trigger a spike in the price of e-cigarettes in Europe, leading to a disruption in the markets in Europe,” says Abhay Sinha, Lead Analyst, New Coverage, Technavio Research.
During 2015, the first-generation e-cigarettes segment accounted for more than 24% of the market share in terms of revenue to dominate the global e-cigarette market. They resemble traditional tobacco cigarettes and are small plastic tubes with an LED light at one end to indicate activation and a mouthpiece on the other end. They are easy-to-use and are usually preferred by beginners. However, the disposables do not always taste like traditional cigarettes in spite of the similarity in appearance, and are not preferred by heavy smokers.
The key vendors in the market include Reynolds American, Imperial Brands, Altria Group, NJOY, and British American Tobacco. The global e-cigarette market is highly fragmented with over 500 e-cigarette vendors operating and selling e-cigarettes under different brand names around the world. With larger players entering the market, the smaller players such as Ballantyne Brands and FIN Branding are facing a challenging competitive environment.
A more detailed analysis is available in the Technavio report, Global E-cigarette Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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