European E Liquid Market

Report Description

The European e-liquid market is standing at a point of influx with a large number of players venturing into the exponentially growing market. The low entry barriers in the form of non-uniformity in regulations and ease of access to distribution channels have brought about a surge in the supply of e-cigarettes and e-liquids across the European nations. Where pre-filled e-liquid market has been identified to be dominating the market as of June 2015, the bottled e-liquid market is gaining rapid momentum, owing to the increased demand of variable wattage e-cigarettes and mods.

The report is a meticulous compilation of the different aspects of the European e-liquid market including the porter’s five forces analysis, market dynamics, key consortiums, compliance and regulatory bodies, market breakdown. The market values form a critical part of the report, herein the revenue generated from sales of e-liquid by types (pre-filled and bottled) and distribution channels have been analyzed to calculate the market size. The market estimation and forecast based on the source of e-liquid and key countries has also been included in the report.

Scope of the Report

While highlighting the key driving and restraining forces for this dynamic market the report also provides a comprehensive section of the prominent consortiums, compliance, and regulatory bodies and their involvement in the e-cigarette industry. Where on one hand the local governments are planning to impose taxes on e-liquids to reduce its increasingly wide spread adoption, on the other there are several consortiums identified who are opposing the proposals and wish to back the effects of e-liquids by scientific studies. A separate section dedicated to buyer’s requirement for e-liquid has also been included in the report.

The industry analysis has been included analyzing the impact of the five major forces to understand the overall attractiveness of the industry. The company profile section has been broken down into local and global players. While the global companies have been chosen on the basis of their market developments and revenue generation, leading country wise e-liquid players have also been profiled in the report.

The European e-liquid market is expected to grow over $11 billion by 2025, at a double digit CAGR from 2015 to 2025. The market will witness a staggering growth until 2017, by when most of the regulatory and policy framework will fall into place. The growth rate will significantly increase thereafter, with significant revenue generation from evolving markets of the U.K., Germany, and Russia. Moreover, while pre-filled e-liquid dominated the European e-liquid market in 2014, bottled e-liquid are anticipated to grow over $4 billion by 2025.

Market Overview

Europe stands at the forefront of the legal scenario of the global e-cigarette market with a series of laws and regulations for e-cigarette and e-liquid manufacturing, sales, distribution, advertising, and marketing. When disposable e-cigarettes entered the market in the form of ‘cig-a-likes’, market estimations were never targeted towards estimating the size of e-liquid market. However, owing to the introduction of second and third generation e-cigarettes, the e-liquid market has gained momentum, especially when users can refill their e-cigarettes themselves. As a result of increasing competition and growing consumer demand for different e-liquid flavors, the European e-liquid market is poised to grow over $11 billion by the end of the forecast period.

The e-liquid market in Europe is being driven by an increasing number of vape shops that are opening up in different countries. However, owing to the anticipated taxes that might be imposed on the sales of e-cigarettes and e-liquids many of these shops might actually exit from the market. Moreover, newer players are resorting to online distribution channels since brick-and-mortar shops require capital investments such as rent and other infrastructure set-up.

The prevalent distribution channels in Europe are online and retail. The e-liquid players either operate through their own brands or sell their products through online supermarkets and e-commerce websites. The retail channel is comprised of convenience stores, pharmacies, tobacco shops, and vape shops among others. Even after the regulatory framework takes shape, the retail outlets will continue to generate increasing revenue for the market. However, the ease of procuring and choosing e-liquids from the wide variety that online resellers offer will enable the distribution channel to grow at a CAGR of 26.26% through the forecast period.