E-Cigarettes Global Market Opportunities and Strategies to 2033

This report describes and explains the e-cigarettes market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global e-cigarettes market reached a value of nearly $21.3 billion in 2023, having grown at a compound annual growth rate (CAGR) of 8.1% since 2018. The market is expected to grow from $21.3 billion in 2023 to $38.9 billion in 2028 at a rate of 12.8%. The market is then expected to grow at a CAGR of 11.3% from 2028 and reach $66.5 billion in 2033.

Growth in the historic period resulted from the health risks with cigarettes and chewing tobacco, increased promotion and marketing efforts and rapid urbanization. Factors that negatively affected growth in the historic period were marketing restrictions.

Going forward, growing popularity of electronic cigarettes, growing demand for disposable e-cigarettes and stringent laws on smoking in public places will drive the growth. Factor that could hinder the growth of the e-cigarettes market in the future include rigid government regulations.

The e-cigarettes market is segmented by product type into disposable, rechargeable and modular. The rechargeable market was the largest segment of the e-cigarettes market segmented by product type, accounting for 60.9% or $12.99 billion of the total in 2023. Going forward, the modular segment is expected to be the fastest growing segment in the e-cigarettes market segmented by product type, at a CAGR of 13.5% during 2023-2028.

The e-cigarettes market is segmented by composition used into nicotine and nicotine-free. The nicotine market was the largest segment of the e-cigarettes market segmented by composition used, accounting for 93.5% or $19.9 billion of the total in 2023. Going forward, the nicotine-free segment is expected to be the fastest growing segment in the e-cigarettes market segmented by composition used, at a CAGR of 15.3% during 2023-2028.

The e-cigarettes market is segmented by distribution channel into specialist e-cig shops, online, supermarkets, tobacconist and other distribution channels. The specialist e-cig shops market was the largest segment of the e-cigarettes market segmented by distribution channel, accounting for 49.9% or $10.6 billion of the total in 2023. Going forward, the online segment is expected to be the fastest growing segment in the e-cigarettes market segmented by distribution channel, at a CAGR of 14.3% during 2023-2028.

North America was the largest region in the e-cigarettes market, accounting for 43.8% or $9.3 billion of the total in 2023. It was followed by Western Europe, Asia Pacific and then the other regions. Going forward, the fastest-growing regions in the e-cigarettes market will be South America and Eastern Europe where growth will be at CAGRs of 17.1% and 15.3% respectively. These will be followed by Africa and Asia Pacific where the markets are expected to grow at CAGRs of 14.3% and 13.8% respectively.

The global e-cigarettes market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 24.87% of the total market in 2022. Philip Morris International Inc was the largest competitor with a 8.93% share of the market, followed by Altria Group Inc with 4.63%, JUUL Labs with 4.12%, British American Tobacco PLC with 3.45%, Japan Tobacco Inc with 1.82%, Imperial Brands PLC with 0.73%, China Boton Group (Kimree Inc.) with 0.67%, Innokin with 0.19%, ITC Limited with 0.18% and Turning Point Brands (International Vapor Group Inc.) with 0.14%.

The top opportunities in the e-cigarettes market segmented by product type will arise in the rechargeable segment, which will gain $10.7 billion of global annual sales by 2028. The top opportunities in the e-cigarettes market segmented by composition used will arise in the nicotine segment, which will gain $16.2 billion of global annual sales by 2028. The top opportunities in the e-cigarettes market segmented by distribution channel will arise in the specialist e-cig shops segment, which will gain $9.5 billion of global annual sales by 2028. The e-cigarettes market size will gain the most in the USA at $5.3 billion.

Market-trend-based strategies for the e-cigarettes market include focus on introduction of e-cigarettes with additional features and flavors, focus on innovation with disposable e-cigarettes, focus on launch of advanced new liquid-type e-cigarette, focus on development of cannabidiol (CBD) vaping product and focus on advancement with thinnest ceramic coil vape pod solution.

Player-adopted strategies in the e-cigarettes market include focus on expanding its business through new product developments and focus on expanding its operational capabilities through strategic acquisitions.

To take advantage of the opportunities, the analyst recommends the e-cigarettes companies to focus on innovation and diversification in e-cigarettes market, focus on disposable e-cigarettes, focus on liquid-type e-cigarettes for market expansion, focus on cannabidiol (CBD) vaping products, focus on advancement in thinnest ceramic coil vape pod solutions, focus on rechargeable and disposable segments, focus on nicotine-free segment, expand in emerging markets, continue to focus on developed markets, focus on specialist e-cig shops and online segments, provide competitively priced offerings, focus on digital channels, focus on targeted education and support and focus on urban lifestyle integration.