Just when you thought it was safe to breathe, a market report by BIS Research, titled "Global E-cigarette and T-vapor Market - Analysis and Forecast, 2017-2025", indicates that the e-cigarette and t-vapor market was estimated at $11.43 billion in 2016 and is expected to grow over $86.43 billion by 2025, growing at a CAGR of 23.25% from 2017 to 2025. The search for alternatives to tobacco cigarettes due to rising health awareness among consumers is fueling market growth.
The U.S. currently has 10 million regular e-cigarette users while, the U.K. has 3 million, as compared to 700,000 in 2012. On the other hand, smoking rates have been on a decline worldwide. For instance, in the U.K., the smoking rate decreased from 20% in 2007 to 16% in 2016.
- Among different e-cigarette product types, open tank systems currently dominate market with revenue generation of $5.16 billion in 2016 and are expected to grow at a CAGR of 21.5% during the forecast period 2017-2025. However, closed tank systems are expected to witness the fastest growth with a CAGR of 21.6% from 2017 to 2025.
- E-liquids are the largest revenue generating component of the e-cigarette market and are responsible for over 38.7% of revenue in the e-cigarette market.
- T-Vapor market is anticipated to grow at a CAGR of 30.9% throughout the forecast period. Over 76% of t-vapor revenue comes from device sales while, the rest is generated through sales of tobacco capsules and tobacco sticks.
- Retail distribution channels such as, vape shops and convenience stores are responsible for 60% of the e-cigarette sales.
- Geographically, North America is the largest market for e-cigarettes, and is expected to reach $17.08 billion by 2025. Within North America, the U.S. is the largest market contributing to approximately 96% of the overall North America market.
- Asia Pacific is the largest market for t-vapor market and is anticipated to witness a CAGR of 23.79%. Japan contributes over 90% of the t-vapor revenue generated in APAC.
The report provides a multidimensional view of the global e-cigarette and t-vapor market in terms of market size and growth potential. It aims at answering various aspects of the e-cigarette and t-vapor market with the help of key factors driving the market, threats that can possibly inhibit the overall market growth, and the current growth opportunities that are going to shape the future trajectory of the market expansion.
Questions answered in the report:
- How has the e-cigarette market evolved in the past, and what is its scope in the future?
- What is the Total Addressable Market (TAM), Segmental Addressable Market (SAM) and the potential market opportunity for the global e-cigarette and t-vapor market?
- What are the major market drivers, challenges, and opportunities in the global e-cigarette and vaporizer market?
- How will each product segment (disposable cig-a-likes, rechargeable cig-a-likes, closed tank systems, open tank systems and t-vapor) grow during the forecast period, and what will be the revenue generated by each of the segments by the end of 2025?
- What are the consumer preferences in terms of adoption of different products?
- What is the anticipated aftermarket demand for various components of each e-cigarette and t-vapor product type throughout the forecast period?
- What are the key developmental strategies implemented by the key players to stand out in this market?
- What are the most prominent distribution channels used by players in the e-cigarette and t-vapor market and why? How will the revenue generated through different distribution channels grow through the forecast period?
- What are the demand for each product type and its components in different geographical regions? Which product segment will witness the fastest growth in each country?