Global Vapor Market: $11.73 Billion in 2019
The global e-cigarettes market was worth $11.73 billion in 2019. It is expected to grow at a compound annual growth rate (CAGR) of 17 percent and reach $21.4 billion by 2023, according to the “E-Cigarettes Global Market Report 2020” report from ResearchAndMarkets.com.
The e-cigarettes market covered in this report is segmented by product type into disposable, rechargable, modular. It is also segmented by composition into tobacco, flavors, nicotine-free and by distribution channel into specialist e-cig shops, online, supermarkets, tobacconist, others.
Rising awareness of health issues caused by smoking conventional tobacco cigarettes among smoking population is driving the growth of the e-cigarettes market. For instance, in December 2018, British American Tobacco (BAT) company released the Vype iSwitch and Vype iSwitch Maxx based on Puretech blade technology, involves using an ultra-slim stainless-steel blade to heat e-liquid and create vapor.
The vapor products do not burn tobacco, the vapor contains significantly lower levels of toxicants in the smoke created when burning tobacco, according to the report. Therefore, e-cigarettes have reduced risk properties compared to traditional cigarettes, according to the report. .
Increased government regulations on the ban on e-cigarettes is restraining the growth of the e-cigarettes market. Many countries have banned the sale and manufacture of e-cigarettes to protect the young people and children from the harmful effects and addiction of e-cigarettes, according to the report.
In December 2019, Indian government has passed prohibition of electronic cigarettes (production, manufacture, sale, distribution, import, export, transport, storage and advertisement) bill 2019 that imposed the ban of e-cigarettes, according to the report. The government banned the e-cigarettes as the manufacturing companies were promoting them as a way to get people out of smoking habits but research studies have shown that most of the people are addicted to it.
Increasing number of mergers and acquisitions between traditional cigarette and e-cigarette manufacturers is trending in the e-cigarettes market. Traditional cigarette manufacturing companies and e-cigarette manufacturers are collaborating for product development or to improve their presence in the global market.
In July 2017, BAT acquired Reynolds American Inc. for $49 billion. The acquisition favored the BAT to have a stable presence in high growth emerging markets and high profitability developed markets.
In June 2018, Philip Morris International Inc. (PMI), a Swiss-domiciled multinational cigarette and tobacco manufacturing company, entered strategic collaboration with Parallax Development Corp. (Parallax). The agreement focused on development and commercialization of an effective alternative nicotine-delivery platforms that uses the maximum advantage of the most advanced technologies in pulmonary medicine. Parallax Development Corp., is a life sciences development company focused on developing an innovative, multi-patented platform for delivering nicotine to smokers in the safest ways possible.