Europe E-Cigarettes - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Europe E-Cigarettes Market is expected to register a CAGR of 12.90% during the forecast period.

The E-cigarette Market in Europe is experiencing robust growth due to increasing consumer interest. In an e-cigarette, a heating element (atomizer) is used for the combustion of the liquid mixture, a mouthpiece that assists with inhalation, and a reservoir that holds the liquid solution. This means that E-cigarettes are a relatively safer alternative to conventional cigarettes since it does not burn tobacco, which produces tar and carbon monoxide, which is the reason why the demand for e-cigarettes in Europe is increasing. The aggressive marketing of e-cigarettes in the European region has also led to a substantial increase in consumers opting for these devices, especially young adults and adolescents.

European countries like the United Kingdom and France are not supporting the WHO studies and still consider e-cigarettes as having a less harmful impact on health than traditional tobacco. Thus, the E-cigarette Market in Europe is on the rise due to the increased use by consumers driven by health concerns and have observed desired results in their attempts to quit/decrease their usage of conventional/combustible cigarettes. Despite concerns voiced by a few medical professionals over the long-term usage of e-cigarettes, the low-risk factor associated with the use of e-cigarettes compared to conventional/combustible cigarettes is driving the market's growth in the region.

Specialist retail stores such as tobacconists and vape shops have been observed to be the most popular channel. The introduction of the Tobacco Products Directive 2014/14/EU (TPD) in the European Union has impacted the online retail channel, owing to which a few countries in the region have banned cross-border distance sales of e-cigarettes.

Europe E-Cigarettes Market Trends

Rising Dual-Use E-Cigarette Among Consumers

• Aiming to reduce their use of conventional/combustible cigarettes, consumers in the region increasingly use e-cigarettes concurrently. Also, as e-cigarettes mimic the experience of smoking conventional/combustible cigarettes, consumers increasingly use them to satisfy their nicotine dependency. E-cigarettes do not produce the tar found in traditional cigarettes, which is a primary cause of lung cancer.
• Moreover, as these products are offered in nicotine and non-nicotine forms, most of the population considers them better alternatives. Thus, the product is gaining mainstream awareness, and more smokers are trying and accepting e-cigarettes as an alternative to their tobacco cigarettes.
• According to the study conducted by the Office for Health Improvement and Disparities (OHID) in the Department of Health and Social Care, England, disposable vaping products have grown in popularity among adults who vape, with 15.2% of adults using them in 2022 compared to 2.2% in 2021, indicating a surge in popularity. As e-cigarettes are considered safer, consumption is rising among the young population in the European region.
• According to the study conducted by the OHID in the Department of Health and Social Care, England, it was found that quit attempts involving a vaping product had higher success rates compared with quit attempts without involving a vaping product in the period 2020 to 2021 (64.9% compared with 58.6% for attempts without involving a vaping product).
• This dual use has significantly increased the number of e-cigarette users in the region and is expected to drive the market during the forecast period. It has been observed that dual users usually aim to gradually decrease their use of conventional/combustible cigarettes over time, increasing the likelihood of repeat purchases of e-cigarettes in the region.

The United Kingdom Holds a Significant Market Share

• The United Kingdom is the largest market for e-cigarettes in Europe, and the second-largest market in the world, owing to which it is driving the market in the region. E-cigarette use in the country is growing due to the rising number of users, coupled with support from health authorities.
• The increasing consumption of e-cigarettes by the young population in the country is aiding the market growth. According to the Action on Smoking & Health (ASH), in 2022, 4% of the United Kingdom's 11-15-year-olds, 14.1% of 16-17-year-olds, and 20.2% of the 18-year-olds have vaped. However, the most common reason for vaping in the United Kingdom is an aid to quitting smoking. The authorities in the United Kingdom believe these devices are a means for people to transition from the much harmful habit of using conventional/combustible cigarettes.
• For instance, in August 2021, the World E-Cigarette Alliance launched the e-cigarette bus as part of their efforts to support e-cigarettes and help people quit smoking. The bus toured across Europe to carry out education on reducing tobacco hazards.
• Additionally, the market offers a wide variety of flavors, and consumers prefer customized e-liquid flavors. Many businesses with physical stores allow consumers to test and try different flavors and liquids before making a purchase. This factor contributes to the market growth of e-cigarettes in the country.

Europe E-Cigarettes Industry Overview

The Europe e-cigarette market is consolidated and comprises a few prominent players who hold most of the share in the market. Key strategies adopted by the major players are product innovation and mergers and acquisitions.

Key players are investing in R&D to develop and launch new and innovative products to cater to the ever-increasing demand for new products from consumers across the world. With the increasing number of health-conscious consumers worldwide, major players are adopting several strategies to draw consumers' attention by introducing products with new technological advancements.

Increasing firm concentration ratio and advertising expenses by companies are also strengthening the competition. Also, the players continuously launch new products to retain and strengthen their market positions. Some of the major players in the market are British American Tobacco PLC, Philip Morris International Inc., Altria Group, Inc., Imperial Brands PLC, and Japan Tobacco Inc.

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