Reportlinker, a market research firm, announced the release of the 2022 Electronic Cigarette Global Market Report.
The global e-cigarette market is expected to grow from USD 18.15 billion in 2021 to USD 21.63 billion in 2022, at a compound annual growth rate (CAGR) of 19.2%. The increase was primarily driven by companies resuming operations and adapting to the new normal, while recovering from the impact of COVID-19, which had previously led to operational challenges caused by restrictive containment measures, including social distancing, remote work and the closure of business activities.
The market is expected to reach USD 38.53 billion in 2026, growing at a CAGR of 15.5%.
The e-cigarette market consists of sales of e-cigarettes. An e-cigarette is a handheld, battery-operated electronic device that contains a solution of nicotine, glycerin, and flavoring that turns into a vapor that the user can inhale.
These come in a variety of flavors such as mint, menthol and chocolate.
The main product types of e-cigarettes are disposable, rechargeable, and modular. Disposable products are thrown away after use.
The composition used was tobacco, flavor, nicotine free. Distribution channels include professional e-cigarette stores, online, supermarkets, tobacco shops, etc.
Rising awareness among smokers about the health problems caused by smoking traditional tobacco cigarettes is driving the growth of the e-cigarette market. Traditional tobacco cigarettes release toxic compounds that can adversely affect personal health.
Compared with traditional tobacco cigarettes, e-cigarettes are less toxic and safer.
Increasing government bans on e-cigarettes restrain the growth of the e-cigarette market. Many countries have banned the sale and manufacture of e-cigarettes to protect adolescents and children from the harmful effects and addiction of e-cigarettes.
In December 2019, the Indian government passed the Prohibition of Electronic Cigarettes (Production, Manufacture, Sale, Distribution, Import and Export, Transport, Storage and Advertising) Act 2019, which imposed a ban on electronic cigarettes. The government bans e-cigarettes because manufacturing companies are promoting them as a way to get people out of their smoking habit, but research shows that most people are addicted to them.
The increasing number of mergers and acquisitions between traditional cigarette and e-cigarette manufacturers is a trend in the e-cigarette market. Traditional cigarette manufacturing companies and e-cigarette manufacturers are collaborating to develop products or increase their presence in the global market.