The global e-cigarette market was valued at us $11.73 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 17% to REACH US $21.4 billion by 2023, according to the "E-Cigarette Global Market Report 2020" by ResearchAndMarkets.com.
The e-cigarette market covered in this report is segmented by product type into disposable, rechargeable, modular. It is also divided by ingredient into tobacco, flavoring, nicotine-free, and through distribution channels into dedicated e-cigarette shops, online, supermarkets, tobacco specialists, etc.
Increased awareness of the health problems caused by smoking among smokers is driving the growth of the e-cigarette market. For example, In December 2018, British American Tobacco (BAT) released Vype iSwitch and Vype iSwitch Maxx based on Puretech blade technology, which involves using ultra-thin stainless steel blades to heat electronic liquids and generate steam.
According to the report, the vapor products do not burn tobacco, and the levels of toxic substances in the vapor are significantly lower than the smoke produced by burning tobacco. As a result, e-cigarettes have reduced risk characteristics compared to traditional cigarettes, the report said.
Increasingly stringent government regulations banning e-cigarettes have limited the growth of the e-cigarette market. The report says many countries ban the sale and manufacture of e-cigarettes to protect young people and children from the harmful effects and addiction of e-cigarettes.
In December 2019, the Indian government passed the Ban on E-cigarettes (Manufacture, Manufacture, Sale, Distribution, Import, Export, Transport, Storage and Advertising) Act 2019, which implemented the ban on e-cigarettes, the report said. E-cigarettes are banned by the government because manufacturing companies are promoting them to wean people off the smoking habit, but studies show most people are addicted to them.
In the e-cigarette market, there is an increasing trend of mergers and acquisitions between traditional cigarette and e-cigarette makers. Traditional cigarette manufacturers and e-cigarette makers are working together to develop products or improve their positions in the global market.
In July 2017, British American Tobacco acquired Reynolds American for $49 billion. The acquisition will help bat stabilize its presence in high-growth emerging markets and high-margin developed markets.
Philip Morris International Inc. (PMI), a Swiss-registered multinational cigarette and tobacco production company, entered into a strategic partnership with Parallax Development Corp. (Parallax) in June 2018. The agreement focuses on the development and commercialization of an effective alternative nicotine delivery platform that leverages the greatest benefits of state-of-the-art technology in pulmonary medicine. Parallax Development Corp. is a life sciences Development company dedicated to developing an innovative, patented platform to deliver nicotine to smokers in the safest way possible.