GIA: Valued to be $22.5 Billion by 2026, E-cigarettes Slated for Robust Growth Worldwide
A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, released its report titled "E-cigarettes - Global Market Trajectory & Analytics". The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.
Global E-cigarettes Market to Reach US$22.5 Billion by the Year 2026
E-cigarettes or electronic cigarettes are electronic devices used for converting a liquid into vapor in an atomizer. Tobacco vapor products and e-cigarettes feel and look just like traditional cigarettes. However, as compared to tobacco cigarettes, the chemicals released by them are less toxic, making them a safe substitute for tobacco cigarettes. A key factor driving growth in the global market is the popularity and growth of vaping devices. Technological advancements and innovations are likely to boost the development of next-generation or advanced products. Increasing demand for alternatives of tobacco cigarettes is making conventional tobacco manufacturers engage into designing, production and distribution of vaping products. In the last few years, technologies like pod devices have provided a major boost to vaping devices' sales. Rechargeable e-cigarette devices are affordable and long-lasting. Modular devices offer personalization options, allowing customers to use a combination of different parts for altering flavor as well as the production of vapor from these devices. Currently, modular devices represent the product segment with most promising growth prospects.
Amid the COVID-19 crisis, the global market for E-cigarettes estimated at US$15.6 Billion in the year 2022, is projected to reach a revised size of US$24.6 Billion by 2026, growing at a CAGR of 8.3% over the analysis period. Modular, one of the segments analyzed in the report, is projected to grow at a 8.7% CAGR to reach US$13 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Rechargeable segment is readjusted to a revised 7.8% CAGR for the next 7-year period. This segment currently accounts for a 39.7% share of the global E-cigarettes market.
The U.S. Market is Estimated at $5.3 Billion in 2022, While China is Forecast to Reach $5.1 Billion by 2026
The E-cigarettes market in the U.S. is estimated at US$5.3 Billion in the year 2022. The country currently accounts for a 33.72% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of US$5.1 Billion in the year 2026 trailing a CAGR of 9.4% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 7.6% and 6.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6.7% CAGR while Rest of European market (as defined in the study) will reach US$1.8 Billion by the end of the analysis period. The United States is among the biggest markets for e-cigarettes. Market growth is supported by entry of major players from the pharmaceutical, tobacco and other leading industries. In addition to unveiling new brands, well-established tobacco companies are making acquisitions for boosting their market share. Europe is another leading market for e-cigarette owing to early usage of t-vapor products. Asia-Pacific region is expected to emerge as a fast growing market for e-cigarette, steered by growing rate of urbanization and increasing population.
Disposable Segment to Reach $2 Billion by 2026
In the global Disposable segment, USA, Canada, Japan, China and Europe will drive the 7.8% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$1.1 Billion will reach a projected size of US$1.9 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$2.5 Billion by the year 2026.
