An electronic cigarette (e cigarette), or Vaporizer or electronic nicotine delivery system (ENDS) is a battery operated device which simulates the experience of tobacco smoking without the inhalation of smoke. This device which is being reckoned as an alternative of conventional cigarettes emits vaporized nicotine which is inhaled by the user. BIS Research estimates that the global electronic cigarette industry will exhibit a growth of over 22.36% (CAGR) from 2015 to 2025, to reach a total market value of $50 Billion by 2025 as per its updated report.
An electronic cigarette (e cigarette), or Vaporizer or electronic nicotine delivery system (ENDS) is a battery operated device which simulates the experience of tobacco smoking without the inhalation of smoke. This device which is being reckoned as an alternative of conventional cigarettes emits vaporized nicotine which is inhaled by the user.
Competing directly with the Big Tobacco and Big Pharma companies, the e-cigarette market is flourishing amidst an overall non-uniformity of regulations globally. The demand for e-cigarettes escalated since 2012 and is anticipated to grow over $50 billion by 2025 at an estimated CAGR of 22.36% from 2015 to 2025 as per our latest market research report on global e cigarette industry. An increasing number of brands are being rolled out and the market players are intensifying the competition with innovative product launches, enhancing the quality and level of customization in the products.
The year 2014 marked its significance in the e-cigarette industry timeline, recording some major acquisitions, patent warfare, changing regulations, and technologically advanced product launches. While yet another tobacco giant, Imperial Tobacco revealed its agreement with Reynolds American to acquire Blu Ecigs to enter the U.S. market; the European market was bombarded with a set of stringent regulations, to come into effect by May 2016.
BIS Research analysis of the industry suggests that e cigarette is yet to gain a wide scale acceptance in the APAC (Asia Pacific) region. APAC, with countries such as China and India is home to the largest producers and consumers of tobacco products and the conversion of even a small percentage of smokers to vapers is expected to bring about significant revenue flow from these countries. In spite of being ranked lower in the global e-cigarette market revenue generation, China is currently the manufacturing hub, exporting more than 80% of the e-cigarettes and accessories produced to the U.S. and the European markets.
The market shows no signs of slowing down entering 2015, with yet another acquisition by tobacco monolith Japan Tobacco (JT) taking over Logic Technology, one of the leading e-cigarettes market players based out of the U.S. Moreover, the distribution channels for e-cigarette and accessories are aligning with the fast paced growth of the market, with the emergence of dedicated vape shops among other retail outlets. Although the market is being driven on multiple promising factors such as the presence of established brands, cost-effectiveness, perceived health benefits, and product customizations, there are certain pain points such as uncertain regulatory framework, increasing incidents of e-liquid poisoning, and compatibility issues among others which must be addressed for the market to grow significantly.
The market has evolved through three generations and is standing at the point of influx and the onset of 2017 is expected to present a more stable picture of the e-cigarette market globally, with regulatory framework taking final shape across participating countries.
BIS Research tracks electronic cigarette industry with a 360 degree approach, estimating market size, market share by vendors and region, growth potential and forecast data. A dedicated team of researchers conduct interview, surveys and to gather wealth of information on the industry trends and presents the same in a comprehensive market report.