Vape Industry To Hit $43 Billion In The Next 5 Years
The vape industry is estimated to hit $43 billion by 2023, growing at an impressive CAGR of over 15% from 2017 until then.
A recent report called “Vapor Products Market (E-vapor and Heat-not-Burn Devices) – Global Outlook and Forecast 2018-2023” has compiled an analysis on the market size and forecast, market share, industry trends, growth drivers, and vendor statistics and projects outwards to 2023 with the vape industry to hit 43 Billion.
Another similar report called “E-cigarette Market Analysis By Product (Disposable, Rechargeable, Modular), and Segment Forecasts” covering data from 2014 to 2024 estimates the industry to reach $44.55 Billion by 2024.
The market study offers insights about industry segmentation in terms of products (cig-a-likes, closed tanks systems, VTMs, e-liquids, cartomizers, e-cigarette batteries, heat-not-burn (HnB) devices, tobacco sticks (like iQOS refills), and tobacco cartridges), and by distribution (retail and online), and by region (APAC, Europe, Latin America, MEA, and North America).
An overview of the e-cigarette industry
The e-cigarette market is currently growing at a tremendous rate and gaining popularity worldwide. Several key vendors are introducing next generation vapor products and reduced risk products (RRP) due to the increasing popularity of e-cigarettes.
Recent developments include the introduction of vaping devices or battery-powered e-cigarettes. These vaping products reduce the risk of tobacco-related diseases by eliminating the inhalation of tar and the thousands of other toxicants by active and passive smokers alike.
About one billion people in the world fall under the category of tobacco smokers, constituting approximately 13% of the total world population. According to the WHO, around 7 million people die due to traditional tobacco use annually, around 890,000 of these die due to illness connected to passive smoking.
The growing awareness of the effects of smoking along with technological developments aiding in the development of safer alternatives to smoking has been driving the global e-cigarette market to new heights and is expected to exceed a value of $43 billion by 2023, growing at an impressive CAGR of over 15% over 2017–2023.
Perceptions in the general public about e-cigarettes is steadily changing worldwide. The alternative nicotine delivery market as a whole is witnessing an increase in desire among end-users globally. More and more people are turning to these devices to quit smoking because of the increasing number of deaths caused by the plethora of smoking-related diseases.
These factors are primary contributors in the decline of the global sales volume of traditional cigarettes seen over the last few years. This trend, coupled with continuous innovations in the e-cigarette industry, is prompting large tobacco companies such as Altria Group, Imperial Tobacco, Philip Morris International, and British American Tobacco to shift their focus toward the development of reduced risk products.