LONDON -- Euromonitor has released new data on the vapor tobacco category incorporating electronic cigarettes and e-liquid products nearly doubling in size from 2013 to reach $6 billion in 2014.
“Since its introduction to the market in 2005, vapor products have grown by nearly 70%, eclipsing nicotine replacement therapy products, which in comparison stood at $2.4 billion in global sales in 2014,” said Zora Milenkovic, head of tobacco research at Euromonitor International.
A change in consumer preferences and a desire for a healthier lifestyle is driving this shift with mature markets leading the way. The United States dominates the market for vapor products with nearly half of global sales of $2.8 billion in 2014, followed by the UK, Italy, Poland and France.
“The number of sole or dual users of vapor products surged to 13 million globally in 2014, meaning consumers are choosing traditional tobacco products alongside vapor devices,” said Shane MacGuill, senior tobacco analyst. “The majority of all vapor users are current or former adult smokers.”
Since 2009, there has been a shift from cig-a-likes to open-tank systems, enabling adult consumers to customize their e-liquid intake. Euromonitor forecasts the vapor market will grow 29.3% compound annual growth rate to reach $23.4 billion in 2019, with Bosnia-Herzegovina, Switzerland, Japan, the United States and Egypt becoming the fastest-growing markets.
“The outstanding predictions for vapor’s future could easily vanish if legislation moves forward with tobacco-level taxation, demands for child-proofing or public vaping bans; however, if the legislation remains as it is, Euromonitor predicts the vapor market can reach more than $50 billion by 2030,” Milenkovic said.
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