Latin America E-Cigarettes Market Growth, Trends and Forecasts (2023-2028)

The Latin American e-cigarette market is projected to register a CAGR of 5.74% during the forecast period.

Key Highlights

• E-cigarettes and vaping devices are expected to gain significant traction during the forecast period due to the growing emphasis on adopting safer alternatives to smoking throughout the forecast. To meet the increasing demand for e-cigarettes and vape devices, vendors started to offer their products on the internet, including gifts with each purchase of vaping devices.
• People are increasingly using E-cigarettes or electronic nicotine delivery systems (ENDS) as a substitute for smoking or recreational purposes. Due to the growing health concern over conventional tobacco-based cigarettes, the e-cigarette market has witnessed significant growth over the past decade. In Latin America, vaping is either illegal, or the laws are uncertain about e-cigarettes.
• For example, vaping is banned in major countries like Argentina, Brazil, Mexico, and Venezuela, while there are no definite laws in countries like Peru and Colombia. As enforcement of e-cigarette laws is often open to local authorities, vape shops are usually found in places where they are technically illegal in the region. In the entire region, only five regions where the sale of e-cigarettes is legal and allowed are Chile, Ecuador, Honduras, Paraguay, and Costa Rica.

Latin America E-cigarettes Market Trends

Rising Prevalence of Smoking among Young Population

• Almost all tobacco usage begins in childhood and continues throughout young adulthood. The Frontiers in Public Health journal 2021 reports that in Brazil, approximately 24 million people smoke, and 16.9% of the population have used tobacco at some point in their lives. There has been a decline in smoking prevalence in Brazil in the last decade in all groups except for individuals aged 18-24.
• Moreover, changing physical, behavioural, and social characteristics accompany adolescence into adulthood, including tobacco use. In many countries around the Latin America region, illicit drugs, such as tobacco, are among the most commonly used substances. They are generally the second substance an individual tries out due to curiosity, a desire for acceptance in a group, or an urge to rebel against the establishment.
• Additionally, while direct marketing to minors is now prohibited by law, the tobacco industry continues to develop, package, and advertise its products in ways that appeal to the rising number of the younger population in the region. In addition to that, companies are innovating new products according to health and wellness, consumer preferences, etc. Since the sales of e-cigarettes are limited to a few Latin American countries, the distribution of these products is also limited by a few private companies such as Innokin Technology and KangerTech.

Chile Holds Significant Share

• According to World Population Review, Chile has the fifth-highest smoking rate with 44.70% in the world and the highest in Latin America. The Institute of Clinical and Health Effectiveness reported that in 2021, smoking had a direct cost of more than USED 1 billion alone in direct costs (treatments, hospitalizations, surgeries, medicine) to the Chilean government.
• As a result, the expenditure is equivalent to 0.8% of annual GDP and is 30% in excess of the amount collected from tobacco taxes yearly. Considering this fact, e-cigarettes are considered less toxic and safer than conventional tobacco cigarettes, making them a viable alternative.
• A research study concluded that the people who smoked only e-cigarettes had similar levels of carcinogens to people using nicotine-replacement therapies and had much lower toxicity levels than people who only smoked cigarettes. The reduced toxicity levels and cost concerns are expected to drive the e-cigarette market in Latin American countries.

Latin America E-cigarettes Market Competitor Analysis

The Latin American E-cigarettes market is competitive with many regional players. Some significant companies selling e-cigarettes in the Latin American market are Shenzhen Kanger Technology Co., Ltd, Innokin Technology, British American Tobacco, and Shenzhen IVPS Technology Corporation Ltd. (Smok). Most companies sell their e-cigarettes via websites such as Revolution Vapor Ltda., and C.R. Vapor. Since it's legal to sell or use an e-cigarette in Ecuador, where they are considered 'electronic nicotine delivery systems,' advertising of e-cigarettes in Ecuador is only allowed in venues accessed solely by adults, thereby providing some form of consumer knowledge regarding the brands or companies selling their range of e-cigarettes in the country.

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• The market estimate (ME) sheet in Excel format
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