Irish consultancy Research & Markets (R&M) has just released its analysis of the e-cigarette market. Despite facing many restrictions and bans around the world, the growth of the e-cigarette market has not stopped, and according to estimates, its global revenue could reach $32 billion by 2021.
Rapid growth in North America and Asia-Pacific regions
According to R&M research, North America has the largest market share with total revenue accounting for 40% in 2015. R&M also estimates that its growth rate could reach 21% per year until 2021, a range that is enough to confirm the US prediction. The market share in the Asia-Pacific region will also expand rapidly and could account for 21% of the industry within the next 5 years.
The consulting firm used emerging trends as the basis for its calculations. The perception of e-cigarette products as alternatives to tobacco was also one of its parameters. Analysts compared the decline in sales of tobacco products with the increase in sales of e-cigarette products.
Electronic cigarette products are used as a substitute for cigarettes.
In the US, sales of traditional cigarettes fell by 19% between 2008 and 2015, prompting companies like Altria Group, Imperial Tobacco and Reynolds to invest heavily in e-cigarette products. The second factor driving the rise in vaping is the rising number of smoking-related illnesses. According to the US government, 480,000 people die from smoking, and 42,000 die from secondhand smoke.
There are many challenges ahead.
R&M also reported on the challenges facing the e-cigarette market , such as new legislation (TPD, FDA, etc.) and multiple bans around the world. The report stated that “the effects of e-cigarettes on the human body are still not fully understood.” Regarding health safety, the report also stated that “researchers have shown that e- cigarettes contain a substance that causes lung disease.” The study identified diacetyl, and many manufacturers have tried to avoid using this chemical.
Despite the challenges, market research suggests that the e-cigarette market will continue to expand over the next decade. Another organization, Ernst & Young, estimated sales at €7.5 billion in 2015, and Bis Research US has suggested that sales could reach $50 billion by 2025.
