E-cigaret or e-cigarette was developed to revolutionize the consumption of nicotine. It was first developed by Hon Lik in 2003 and used small batteries to vaporize a nicotine-laced solution. This resulting solution was inhaled by the consumers. Since then, its use has grown over time and has become a rapidly emerging trend, popular among youth and young adults.
Global E-Cigarette market
The global e-cigarette and vaporizer market is expected to reach approximately $61.4 billion by 2025, with compound annual growth rate of about 20.8%. The trends for predicted growth in market can be attributed to the ease of access to the distribution channel (online websites and e-commerce sites like Ecigaret Land), low costs of e-cigarettes, brand presence in the market, improvements in device technology through innovation and combination of E-cigarette and cannabis industry. Further decline in tobacco cigarette market is also a key driver of e-cigarette market. Retail channels (e.g., vape shops, convenience stores) are the key channel for distribution, accounting for about 60% of the revenue.
Market landscape and opportunities
The offerors in this industry do not provide all types of e-cigaretter. Further, the market is fragmented with top three offerors accounting for majority of market share (more than 60%) in 2017. With a rapid increase in the use of e-cigarette markets and emerging economies in untapped markets, there is a lot of unexplored potential in this market. As e-cigarette use expands, there is a potential for its adoption in other developed and developing regions of the world, such as Asia-Pacific, Latin America, and Africa. E-cigarette manufacturers need to explorer marketability into these regions through various marketing and distribution channels. Manufacturers also need to focus on working with local and national tobacco producers to understand and market in these new regions. Although there are potential opportunities in global market, yet a state of uncertainty persists resulting from existing product differentiation and probable shift in consumer taste.