The global e-cigarette and vape market size was valued at USD 28.17 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 30.6% from 2023 to 2030. The public’s growing understanding of e-cigarettes being safer than traditional cigarettes, particularly among younger people, is forecasted to fuel market expansion due to numerous studies conducted by medical institutions and associations. Additionally, it is anticipated that the manufacturers’ wide range of customization options, including temperature control and nicotine dosages, will help the product demand. Additionally, growing e-cigarette technologies like pod systems and squonk mods have gained popularity and user adoption in recent years.

E-cigarette and vape providers have developed several COVID-19-based marketing methods to boost product sales amid the COVID-19 pandemic. The use of e-cigarettes and vaping equipment is expected to increase over the projection period as people adopt safer alternatives to smoking. When e-cigarette and vape device stocks in physical stores started to run low, sellers began selling their items online and giving out hand sanitizers and face masks in exchange for vaping product purchases.

The market also offers a variety of flavors, including menthol, tobacco, fruits and nuts, and chocolate. An e-cigarette or a vape device that uses these tastes emits fragrances. Additionally, these devices’ rising cost-effectiveness has increased customer acceptance and is anticipated to fuel market expansion throughout the projection period.

There has been a significant increase in sales of atomizers and e-liquids in North American and European markets due to the increasing demand. Many nations, including the U.K., have legalized e-cigarette use, which has boosted industry expansion. Additionally, vape shops have been set up where clients can go in person and taste the products and e-liquid flavors before buying. Tank e-cigarettes have continued to be the most popular device type in England. Still, pod e-cigarettes have overtaken them due to the rise in JUUL (Juul Labs, Inc., an American electronic cigarette manufacturer) use.

Market participants in the e-cigarette sector are well-known companies with sizable market shares. Corporations have mostly invested in e-cigarettes since they are anticipated to be a successful alternative to tobacco use. However, the market is home to several small firms that provide effective vaping products and e-liquids, building a sizable consumer base. To keep their prices low, small businesses typically outsource the production of e-cigarettes to Asian nations like China.

However, restrictions placed on the sale of vaping supplies and e-liquids by local authorities in many nations, including the U.S. and India, have slowed the market’s expansion. Furthermore, it is challenging for retail customers to import vaping devices for personal use due to strict trading rules. However, it is anticipated that laws governing conventional cigarettes would recognize e-cigarettes as a healthy alternative to tobacco use, thereby regulating the technology for secure distribution and use. Additionally, the vaping industry has established several associations to combat anti-vaping regulations and regulate the business for oversight, thereby fueling the expansion of the e-cigarette and vaping markets.

Market Concentration & Characteristics

Market growth stage is high, and pace of the market growth is accelerating. The e-cigarette and vape market gained significant traction in recent years, as it is an effective technology that would probably replace traditional cigarettes. Sleek and stylish designs, as well as innovations such as Bluetooth connectivity and touchscreens, attracted buyers looking for high-tech vaping experience.

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The e-cigarette and vape market is also characterized by a high level of new product launch activity by the market players. This is due to several factors, including increased company revenue share and attracting new customers. Furthermore, market players are adopting other strategies such as merger & acquisitions, partnerships, and collaborations to increase the reach and availability of their products and services in diverse geographical areas.

The regulations regarding e-cigarettes are similar to those of cigarettes that creates less flexibility to regulate e-cigarettes. Authorities across multiple countries have a negative perception towards e-cigarettes that has led them to term e-cigarettes with traditional cigarettes. However, studies have determined that e-cigarettes are comparatively less harmful than cigarettes and has made certain bans in countries to be revised.

The threat of substitutes is low as there are no substitute products available in the market. No substitute eliminates the cost of switching in the market. Thus, the buyer has to purchase products that are offered by the suppliers. Since the technology is in its developing stages, the possibility of substitute products entering the market is less.

Buyers can purchase e-cigarettes through online marketplaces. Moreover, in regions such as North America, buyers can purchase from stores that are popularly called vape shops. Trends in the e-cigarette and vape market were often influenced by social media. Influencers and user-generated content played a role in shaping perceptions and preferences.

Report Coverage & Deliverables

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• Competitive benchmarking
• Historical data & forecasts
• Company revenue shares
• Regional opportunities
• Latest trends & dynamics

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Product Insights

The rechargeable segment accounted for the highest market share of over 40% in 2022. Rechargeable devices are predicted to become more popular due to their affordability and ability to do away with the requirement for ongoing supply purchases like cartridges. Additionally, clients who make their e-liquid can avoid buying pre-filled cartridges. Particularly seasoned smokers find that buying recharged e-cigarettes is cost-effective. Rechargeable e-cigarettes are also becoming increasingly popular among young people in many important countries because they emit less smoke and can be charged even through a USB port.

The modular devices segment is anticipated to register a significant growth rate over the forecast period. The devices’ high-level customization capabilities to combine various functions and components are the primary driving force behind demand. Depending on individual needs, these parts and components change the flavor and volume of vapor the device produces. The regular organization of various vaping events, including vape conferences and competitions, boosts the region’s need for modular devices.