A Global E-Cigarette and Vape Market Study were prepared by a leading non-profit research organization. Global is a division of the Global tobacco Institute (GTI). The study was released in May, 2021. The purpose of this study was to examine the global markets and product segments of the E-Cigarette and Vape industries. The study covered over sixty countries including thirty-nine unique models that were analyzed in detail.
This global study was prepared for the first time since the year 2021. The report highlights the alarming increase in users of both the tobacco and the electronic cigarette or the Vaporizer. Almost half the world’s population has now switched to e-cigs. In the next two years an estimated one billion people will begin to use the electronic cigarettes and vaporizers. This will cause a drastic increase in the global tobacco and Vape markets.
With the increase in demand comes the increase in production. There is an expected twofold increase in supply during the next two years. This growth is being driven by tighter regulations enforced by the Food and Drug Administration (FDA). Some government officials are calling for a ban on the sale of these products to protect consumers from dangerous second hand smoke. There are also concerns about younger youth acquiring nicotine through e-juice.
The forecast for the global e cigarette and Vaporizer markets shows a steep increase in sales over the next two years. The forecast calls for a ten percent increase in revenues over the next five years. The major contributors to this forecast include an increase in China’s e Cigarette sales. Specifically, China’s population is increasing and the economy is slowing down.
In China, there is a strong likelihood that the number of people beginning to purchase electronic cigarettes will surpass those who smoke tobacco on a daily basis. The highest market share held by the electronic cigarette segment accounted for users of electronic cigarettes. The second highest market share accounted for users of “moderately” flavored e-juices. These e-juices do not contain real tobacco and are marketed towards adults.
The forecast period for this year is considered a medium-sized forecast period. Over the next five years, it is estimated that the e cigarette segment will continue to experience significant growth. The increase is being driven primarily by higher prices. Many countries have implemented taxes on electronic cigarettes to attempt to decrease overall consumption. In response, many companies have implemented discounts and special offers to lure more adult consumers into purchasing their product.
There is also a high potential for growth in the Global Premium E-Cigarette Business. Currently, global e cigarettes make up over twenty percent of the overall market. Global Premium e-Cigarette’s business opportunities will be based on the success of theirsmokeable gum and their vaporizer devices. These two products offer different ways to inhale nicotine and have gained a significant amount of fans.
Other markets will be included in the mid-range forecast period. The United Kingdom is expected to experience an increase in disposable electronic cigarettes available for use by adults. The United States is also expected to experience a significant increase in disposable e Cigarette devices and gums sold specifically for children. The highest growth over the forecast period will be recorded in Australia, where the share of market share is predicted to double. Other countries including Japan, Sweden and Norway also have a high probability of seeing market growth over the forecast period.
Liquid Nicotine Gum will also see a significant increase in sales over the forecast period, with Australia and United Kingdom leading the way. This is due to the fact that many people do not like the taste of traditional gum, thus using it as a replacement. Vaporizing e-liquid is a more preferred method of consuming e-liquid, however there are concerns about the level of nicotine that is released into the e-liquid. This is a relatively new technology that has not been widely tested, however the results so far show promising results. This method is also popular with non-smokers who find it easier to breathe when using it instead of traditional cigarettes.
In addition to the growth in disposable devices, market projections also indicate that wholesale distribution will be very strong during the forecast period. Modular devices offer a convenient and cost-effective delivery to consumers. The distribution channels for these devices will be determined by demand. Modular devices will most likely be sold under the brand name of each individual component.
It is expected that e-cigarette shipments will experience the largest growth over the forecast period, in addition to the largest profit margin. Vaporizer shipments will be the second largest, followed by refill cartridges. The high profit margin associated with e-juices is primarily due to the high price of some of the components used to make e-juice. High demand will also result in high supply, with a surplus of units available to be sold in retail stores. As the e-liquid market continues to mature, it is anticipated that additional distribution channels will emerge, with an emphasis on higher profit margins and convenience to customers.