The global e-cigarette market is set to reach $32 billion (€25 billion) by 2021, while the UK market is set to reach $5.67 billion (€4.46 billion), according to a new report.
According to a new analysis by Beige Market Intelligence, the main reason for the strong boom in vape products is mainly due to its popularity in the North American region, especially the US, and European countries, including the UK.
In the UK, 12 million adults smoke and 2.6 million use vaping products. Of these, around 700,000 are ex-smokers and the remaining 1.3 million use both e-cigarettes and regular cigarettes.
According to the report, the value of the traditional cigarette market is still 20 times higher than the vape market .
Beige estimates the value of the UK vaping market was around $1.16bn (€913m) in 2015. But its growth is expected to slow, and it will be worth around $5.67bn (€4.46bn) by 2021.
According to UKVIA (UK Vaping Industry Association), domestic retail sales are worth around €600 million, and positive feedback from public health authorities has played a huge part in the growth of the market.
“With smokers wanting to quit and recognising alternative products, we believe there is plenty of supply and opportunity in the vaping market,” said a UKVIA spokesperson.
Sales of e-cigarettes surged in 2014 as new technology developed and governments began to introduce regulatory laws.
According to the article, pharmaceutical companies have now spent a significant amount of capital to participate in research and development (R&D) of electronic cigarettes.
Reynolds American increased its R&D investment by 27 percent in 2015 to invest in and develop tobacco alternatives, and BAT (British American Tobacco) has invested $5 billion in R&D for a new generation of products to be developed over the next five years.
Last month, the world's largest tobacco group, Philip Morris International, announced that following the launch of its smokeless tobacco product in the UK, it would cease selling traditional cigarettes.
Major players in the global e-cigarette market include Altria Group (owner of Philip Morris USA), BAT, Imperial Tobacco, Japan Tobacco International and Reynolds American.
According to the article, when the big companies of Big Tobacco enter the market, small businesses will face huge competition.
The e-cigarette market is also a constantly changing environment, with new flavors, more advanced and powerful vape devices, and technology to bring Bluetooth and wifi to the devices.
This article was published on cityam.com by Courtney Goldsmith and translated by The Vape Club.
