The global e-cigarette market 2016 report says one of the major trends that will positively impact the market is introduction of e-cigarettes with new technology and projected increase in the price of e-cigarettes. Manufacturers are constantly developing new types of e-cigarettes to cater to the tastes and needs of customers. They innovate to vape flavours, device shape, technology, and others. For instance, British American Tobacco introduced a new type of heat-not-burn device that combines e-cigarette technology and fresh tobacco leafs. Named glo iFuse, this hybrid cigarette uses small amounts of tobacco to improve the flavor of e-cigarettes.
The analysts forecast global e-cigarette market to grow at a CAGR of 24.33% during the period 2016-2020. According to the e-cigarette market report, a key growth driver is the fact that e-cigarettes are considered to be a safer alternative to tobacco smoking. Globally, smoking tobacco is one of the leading causes of sickness and death, responsible for over six million deaths every year. This also includes about 600,000 non-smokers who are exposed to second-hand smoke. The major health consequences of smoking tobacco are cancer, respiratory diseases, and heart diseases, as harmful chemicals like tar are inhaled during tobacco combustion. Nicotine, present in tobacco products, is responsible for the addictiveness of smoking.
The increasing popularity of e-cigarettes as a safer alternative to tobacco smoking is the fundamental driving force behind growth in this market. Since e-cigarettes deliver nicotine without burning tobacco, they are believed to be a safer and less toxic alternative to conventional cigarettes. This has pushed several smokers to opt for e-cigarettes. During 2015, North America dominated the global e-cigarette market by accounting for a market share of almost 41%. The high popularity of disposable e-cigarettes, their increased availability in the retail stores and online channels, and rapidly growing demand from youth population are the factors augmenting the growth of the e-cigarette market in North America.
The global e-cigarette market is highly fragmented with over 500 e-cigarette vendors operating and selling e-cigarettes under different brand names across the world of which approximately half are based in the US. Earlier, only small companies were in the business of selling and supplying e-cigarettes, but the scenario has changed completely since 2012 when Lorillard (now acquired by Reynolds American) purchased blu eCigs, a leading US-based e-cigarette vendor for USD 135 million. This was the first time a large tobacco company entered the e-cigarette market. After witnessing Lorillard’s success with blu, other large players found the global e-cigarette market lucrative, and a series of M&A began in the market.
The following companies are the key players in the global e-cigarette market: Reynolds American, Imperial Brands, Japan Tobacco, Altria Group, NJOY, and British American Tobacco. Other prominent vendors in the market are: Ballantyne Brands, CB Distributors, ECIG, Gamucci, Nicotek, RRR Chemicals, Vapor, VMR Products, and White Cloud.
Further, the report states that one challenge that could derail market growth is the fire hazard associated with e-cigarettes.
Another related report is Global Smoking Cessation Products Market 2016-2020, the analysts forecast global smoking cessation products market to grow at a CAGR of 18.16% during the period 2016-2020. A ban on tobacco advertisements around the world has had a positive effect on consumers. The report showed a decline of at least 16% in tobacco consumption compared to the pre-ban days. However, only 29 countries, which constitute 12% of the world’s population, have banned these advertisements.