U.S. E-liquid Market Analysis & Forecast 2016-2025

Market Research Report

A quick peek into the report

1.1	Scope of the Study
1.2	Research Methodology
1.2.1	Primary Data Sources
1.2.2	Secondary Data Sources

2.1	Introduction
2.2	Market Drivers
2.2.1	Introduction of Second and Third Generation E-cigarette Products (Rechargeable E-cigs, Personal Vaporizers and Mods)
2.2.1.1	Control Over Nicotine Intake
2.2.1.2	The Feature of Cost Effectiveness
2.2.2	Wide Variety of Flavours
2.2.2.1	For Users Willing to Switch from Conventional Smoking
2.2.2.2	For First Time Users (Vapers)/Non Smokers
2.2.3	Lesser Harmful Ingredients Compared to Conventional Cigarettes
2.2.4	Ease of Access to Distribution Channels
2.2.5	Increasing Social Acceptability of E-cigarette
2.3	Market Challenges
2.3.1	Stringent Regulations
2.3.1.1	Transparency of Product Related Information
2.3.2	Unregulated Manufacturing in Asian Countries Especially China
2.3.3	Increasing Appeal Among Children and Adolescents
2.3.4	Government’s Intention to Levy Hefty Taxes on E-liquid
2.3.5	Increasing Number of Poisoning Incidents

3.1	Key Strategies and Developments
3.1.1	Mergers & Acquisitions
3.1.2	Product Launches
3.1.3	Partnership, Collaboration & Joint Ventures
3.1.4	Business Expansion
3.1.5	Others
3.1.5.1	Patent Lawsuits
3.1.5.2	Events
3.2	Porter’s Five Forces
3.2.1	Threat of New Entrants
3.2.1.1	Access to Distribution Channels
3.2.1.2	Capital Requirements
3.2.1.3	Economies of Scale
3.2.1.4	Entry Barriers
3.2.1.5	Product Differentiation
3.2.2	Bargaining Power of Buyers
3.2.2.1	Buyer’s Information about Supplier’s Product
3.2.2.2	Concentration of Buyers
3.2.2.3	Differentiation of Outputs
3.2.2.4	Importance of Volume to Buyers
3.2.2.5	Threat of Backward Integration
3.2.3	Bargaining Power of Suppliers
3.2.3.1	Product Differentiation
3.2.3.2	Supplier Concentration
3.2.3.3	Switching Cost
3.2.3.4	Threat of Forward Integration
3.2.4	Intensity of Competitive Rivalry
3.2.4.1	Customer’s Loyalty towards Brand
3.2.4.2	Entry Barriers
3.2.4.3	Industry Concentration
3.2.4.4	Intermittent Over Capacity
3.2.4.5	Product Differentiation
3.2.5	Presence of Substitutes
3.3	Pricing Analysis
3.3.1	Pricing by Vendors
3.3.2	Pricing by Flavor
3.4	Buying Criteria-Consumer Perspective
3.4.1	Choice of Bases/Carrier Liquid
3.4.2	Flavor
3.4.3	Nicotine Level
3.4.4	Approval & Standards
3.4.5	Cost
3.4.6	Branding
3.4.7	Packaging & Labelling

4.1	Introduction
4.2	Consortiums
4.2.1	American E-liquid Manufacturers' Standards Association (AEMSA)
4.2.2	American Public Health Association (APHA)
4.2.3	Smoke Free Alternative Trade Association (SFATA)
4.2.4	Tobacco Control Legal Consortium(TCLC)
4.2.5	Tobacco Vapor Electronic Cigarette Association (TVECA)
4.3	Regulatory Bodies
4.3.1	Food and Drug Administration (FDA)
4.3.2	The World Health Organization (WHO)
4.4	E-Liquids Compliances, Regulations and Certifications
4.4.1	ISO 9001: 2008 Certification
4.4.2	U.S. Pharmacopeial Convention (USP) Grade Ingredient
4.4.3	Generally Recognized as Safe (GRAS) Approval
4.4.4	Occupational Safety & Health Administration (OSHA) Regulation
4.5	State-Wise Legal Policy
4.5.1	Introduction
4.6	FDA Regulations

5.1	Introduction
5.1.1	Composition of E-liquid
5.2	By Type
5.2.1	Market Statistics
5.2.2	Pre-Filled E-liquid
5.2.2.1	Key Market Players
5.2.3	Bottled E-liquid
5.2.3.1	Key Market Players
5.3	U.S. E-liquid Market by Source of Origin
5.3.1	Market Statistics

6.1	Introduction
6.1.1	Market Statistics
6.2	Online Distribution Channel
6.3	Retail (Brick and Mortar) Distribution Channel
6.3.1	Convenience Stores
6.3.2	Vape Shops
6.3.3	Others

7.1	Altria Group, Inc.
7.1.1	Company Overview
7.1.2	E-liquid Brands
7.1.2.1	Mark Ten
7.1.2.2	Green Smoke
7.1.3	Financials
7.1.3.1	Financial Summary
7.1.4	SWOT Analysis
7.2	Ballantyne Brands, llc
7.2.1	Company Overview
7.2.2	E-liquid Brands
7.2.2.1	Mistic
7.3	Clearette Electronic Cigarette Co.
7.3.1	Company Overview
7.4	DuraSmoke
7.4.1	Company Overview
7.5	EC Blend
7.5.1	Company Overview
7.6	Electronic Cigarettes International Group
7.6.1	Company Overview
7.6.2	E-liquid Brands
7.6.2.1	Vapestick
7.6.2.2	FIN Branding Group
7.6.2.3	Victory E-Cigarette
7.6.3	Financials
7.6.3.1	Financial Summary
7.6.4	SWOT Analysis
7.7	Fire Brand
7.7.1	Company Overview
7.8	Halocigs
7.8.1	Company Overview
7.9	Hot Vapes
7.9.1	Company Overview
7.10	Imperial Tobacco Group PLC
7.10.1	Company Overview
7.10.1.1	Fontem Ventures
7.10.2	Financials
7.10.2.1	Financial Summary
7.10.3	SWOT Analysis
7.11	International Vapor Group, Inc. (IVG)
7.11.1	Company Overview
7.11.2	E-liquid Brands
7.11.2.1	Eversmoke
7.11.2.2	Vaporfi
7.12	J Vapes E-liquid
7.12.1	Company Overview
7.13	Johnson Creek Enterprise
7.13.1	Company Overview
7.14	Mad Vapes
7.14.1	Company Overview
7.15	Mister E-liquid
7.15.1	Company Overview
7.16	Mountain Oak Vapors
7.16.1	Company Overview
7.17	NicQuid
7.17.1	Company Overview
7.18	Nicvape
7.18.1	Company Overview
7.19	Nixteria
7.19.1	Company Overview
7.20	Purilum
7.20.1	Company Overview
7.21	Reynolds American Inc. (RAI)
7.21.1	Company Overview
7.21.2	Product Portfolio
7.21.2.1	VUSE Electronic Cigarettes
7.21.3	Financials
7.21.3.1	Financial Summary
7.21.4	SWOT Analysis
7.22	Texas Select Vapor
7.22.1	Company Overview
7.23	The Vapor’s Knoll
7.23.1	Company Overview
7.24	The Vapor Bar
7.24.1	Company Overview
7.25	Vapor Cast Store
7.25.1	Company Overview
7.26	Vapor Shark
7.26.1	Company Overview

Table 2.1	Comparing the Presence of Chemicals in Conventional Cigarettes vs E-cigarettes
Table 3.1	Key Mergers and Acquisitions
Table 3.2	Product Launches
Table 3.3	Partnership, Collaboration & Joint Ventures
Table 3.4	Business Expansion
Table 3.5	Key Lawsuits
Table 3.6	Key Events
Table 3.7	Average Selling Price (asp) per ml, by Vendor (For Fruit Flavor)
Table 3.8	Average Selling Price (asp) per Cartridge, by Vendor
Table 3.9	Comparison of Propylene Glycol (PG) and Vegetable Glycol (VG) as Carrier Liquid in E-cigarette
Table 4.1	States with Failed E-cigarette Taxation Laws
Table 4.2	States with Pending E-cigarette Taxation Laws
Table 4.3	FDA Regulations - 2016
Table 5.1	The U.S. E-liquid Market Value, by Type, 2015-2025
Table 5.2	Pre-Filled E-liquid Pricing by Key Vendors
Table 5.3	Bottled E-liquid Pricing by Key Vendors
Table 5.4	U.S. E-liquid Market Value, by Source of Origin, 2015-2025
Table 6.1	U.S. E-liquid Market Value, by Distribution Channel, 2015-2025
Table 6.2	U.S. E-liquid Retail Distribution Channel Market Value, 2015-2025

Figure 1	The U.S. E-liquid Market, by Type, 2015 and 2025
Figure 2	The U.S. E-liquid Market, by Source of Origin, 2015 and 2025
Figure 3	The U.S. E-liquid Market, by Distribution Channel, 2015 and 2025
Figure 1.1	The U.S. E-Liquid Market Scope
Figure 2.1	Summarizing the Research Study on Importance of E-liquid Flavors Variety in Smoking Cessation
Figure 2.2	A Few Examples of E-Liquid Distribution Channels in the U.S.
Figure 3.1	Porters Five Forces Analysis
Figure 3.2	Factors Affecting the Cost of E-liquid
Figure 3.3	The U.S. E Liquid Market, Average Selling Price/ML ($/ml)
Figure 3.4	Certifications and Approvals Prevalent in U.S. E-liquid Market
Figure 3.5	Consumer Advocates for Smoke-Free Alternatives Association (CASAA): Research Results
Figure 3.6	Types of Prevalent E-liquid Flavors
Figure 3.7	Choosing the Right Level of Nicotine in E-cigarette
Figure 3.8	Prevalent Nicotine Distribution Levels
Figure 3.9	Label Requirement for E-liquid Packaging
Figure 4.1	Guidelines for Regulating the Manufacturing of E-liquid by AEMSA
Figure 4.2	Key Operating Principles of SFATA
Figure 4.3	Suggested Policies for E-cigarette Regulations by TCLC
Figure 4.4	E-cigarette Compliance Regulations by TVECA
Figure 4.5	Health Risks of Electronic Nicotine Delivery Systems (ENDS) to Users and Non Users
Figure 4.6	Efficacy of Electronic Nicotine Delivery Systems (ENDS) as a Smoking Cessation Tool
Figure 4.7	CGMP Guidelines for Manufacturing Process of E-liquids and Other Products
Figure 4.8	Some Regulatory Bodies Complying cGMP Guidelines
Figure 4.9	USP Benefits for Participating Companies
Figure 4.10	Key Objectives of PQM
Figure 4.11	Some Key Guidelines of OSHA
Figure 5.1	Advantages & Disadvantages of Pre-Filled E-liquid
Figure 5.2	Advantages & Disadvantages of Bottled E-liquid
Figure 5.3	U.S. E-Liquid Market Growth Trend, by Source of Origin, 2015-2025
Figure 7.1	Altria Group, Inc.: Overall Financials, 2013-2015 ($Billion)
Figure 7.2	Altria Group, Inc.: Net Revenue by Business Segments, 2013-2015 ($Million)
Figure 7.3	ECIG: Overall Financials 2013-2015 ($Million)
Figure 7.4	Imperial Tobacco Group Plc: Overall Financials, ($Billion); 2013-2015
Figure 7.5	Imperial Tobacco Group PLC: Geography Revenue Mix, ($Billion); 2013-2015
Figure 7.6	Reynolds American Inc. (RAI): Overall Financials, 2013-2015 ($Billion)

Report Description

The e-cigarette devices have transitioned through four generations of product innovation in the U.S. The exponential market growth has brought about a surge in the demand for e-liquid in the country. While new consortiums and alliances are being formed to either promote or bring down the growing popularity of e-liquids, an increasing number of convenience stores and online retailers are enhancing their e-liquid product offerings. As a result of increasing competition and growing consumer demand for different e-liquid flavors, the U.S. e-liquid market will grow at a double digit CAGR from 2015 to 2025.

The report on ‘The U.S. E-liquid Market’ is a meticulous compilation of the various facets of the e-liquid industry. After a thorough analysis of the current trends, the market dynamic chapter includes the key push and pull forces prevailing in the U.S. E-liquid market. The chapter also includes the consumer’s perspective and buying criteria pertaining to the U.S. particularly. Owing to the dependency of the market growth on the legal and regulatory framework, the report at each step has considered the effect of laws (both implemented and anticipated) in terms of regulations and taxation in estimation and forecast of the market size. Moreover, the key consortiums and compliance influencing the e-cigarette and e-liquid market in the country have also been included in the report.

Traditionally, e-cigarette companies have imported e-liquid from Asian countries, repackaged and rebranded and made it available for sale in the U.S. However, with the deeming of FDA regulations over e-cigarettes and increasing compliance requirements they are shifting production locally. Having identified the fluctuating landscape in the U.S. market, the competitive insights chapter lays special emphasis on the key strategies and developments including the prominent acquisitions, product developments, partnership, business expansion, and lawsuits among others.

The e-cigarette market is anticipated to grow amidst ongoing legal fluctuations and varying vaping preferences. Moreover, the product choices might differ in the future owing to the hefty taxations that are anticipated on both device and e-liquid. Therefore, the U.S. liquid market estimation and forecast has been initiated with an exhaustive set of assumptions, following which are the key trends and market size information for both types of e-liquid, prefilled and bottled. The market has been further estimated and forecast based on the prevalent distribution channel, i.e. online and retail and by the source of origin.

The report involves a mix of 50+ companies chosen on the basis of their market developments, revenue generation and market share in the industry. The companies profiled in the report include Altria, Imperial Tobacco. Japan Tobacco, Durasmoke, Clearette, Mister E-liquid, and NicQuid among others.

Key Questions Answered in this Report

Key Questions answered in the report:

• How will the key market players leverage on key developments such as acquisitions, partnerships, and product launch among others?
• How will the intensity of competitive rivalry evolve through the forecast period?
• Which factors will be driving the market through the forecast period?
• What factors are currently challenging the U.S. e-liquid market and how can they be addressed through the forecast period?
• Which consortiums are active in the U.S. e-liquid market?
• How are the regulatory bodies such as the Food and Drug Administration (FDA) among others participating in the industry?
• Which compliances and certifications are necessary to make a product acceptable among the users (especially the first time vapers)?
• What are the prevalent e-liquid product types and what is the market size for each of them?
• How will the e-liquid market grow in the next ten years?
• Who are the key players in the U.S. e-liquid market?

Market Overview

Owing to its high acceptance of new technology, the U.S. was the first country to witness widespread adoption of e-cigarettes. It is now the largest revenue generating market for e-cigarettes and vaporizers globally and the exponential market growth has brought about a surge in the demand for e-liquid in the market. An increasing number of convenience stores and online retailers are enhancing their e-liquid product offerings. As a result of increasing competition and growing consumer demand for different e-liquid flavors, the U.S. e-liquid market is poised to grow over $4.77 billion by 2025 at a double digit CAGR from 2015 to 2025.

As a result of the ongoing formulations of regulations, the e-liquid market is experiencing a shift in revenue generation away from foreign enterprises and towards local producers, as manufacturers are shifting production to domestic locations, in efforts to meet compliances. Moreover, the preference towards premium quality e-liquids is rising, since U.S. made e-liquids are perceived to be of higher quality than those manufactured in Asian markets, this has let to an increase in demand for domestically manufactured e-liquids

The e-liquid market value for the pre-filled e-liquid dominated the market in 2015 with a share of $XX million. The cost effectiveness of rechargeable e-cigarettes and disposable e-cigarettes are the key drivers that will enable a faster growth rate of pre-filled e-liquid supply mode through the forecast period. However, by the end of the forecast period the market share of the bottled e-liquid will grow at a significant rate with a market share of $XX billion by 2025 at a CAGR of XX% through the forecast period.

The market is expected to be driven by availability of large variety of flavors, ease of access to distribution channels and increasing proliferation of third and fourth generation e-cigarettes. While the growth of the market will be stymied by strict regulations, increasing taxation across states and citing of accidents across the countries. The major distribution channels in the U.S. are online and retail. The retail channel is comprised of convenience stores, pharmacies, tobacco shops, and vape shops among others. While online, the e-liquid players either operate through their own brands or sell their products through online supermarkets and e-commerce websites. Currently, retail chains are the prevalent distribution channel with over XX% share. However, the ease of procuring and choosing e-liquid from the wide variety that online resellers offer will enable the distribution channel to grow at a CAGR of 15.03% through the forecast period to become the prominent channel by 2025.

While established brands such as Blu, Vuse, Logic, MarkTen, and NJOY among others contribute significantly to the e-liquid market value in the U.S., dedicated e-liquid players such as NicQuid, Purilum, and J Vapes E-liquid have also been identified as key players in the market.