E-Cigarette Market - Market Size
Through the years 2018 to 2025, the global e-cigarette market will experience dramatic growth. Generally, the popularity of e-cigarette products and the awareness of the health hazards of traditional cigarettes serve as an impetus for the market to grow during these years. Globally, North America and Europe dominate the market. In fact, in 2017, North America posted an estimated $5.2 billion in e-cigarette products revenue. The North American market will grow at a CAGR of 16.03% through the years 2018 to 2025 leaving us with an estimated market value of $17.08 billion in 2025.
In 2016, the global e-cigarette industry has posted $7.1 billion in market value. The market is slated to grow considerably through the years 2018 to 2024 due to the increasing popularity of consumers demand on environment-friendly and economical products. North America and Europe together dominate the industry by accounting for over 75% of the global e-cigarette market in 2016. The high consumption rate of vape products in these regions can be attributed to the fact that e-cigarette products are considered viable options to curb smoking addiction among its residents. The European market will sustain its dominance in the market for the years 2018 to 2024 with UK and Italy being considered major growth drivers.
Asia Pacific region continues to have an increment share in the global e-cigarette market by contributing over 20% of the industry's revenue in 2016. The growth in the Asia Pacific region is driven by its residents' efforts to lessen smoking addiction along with an increasing consumer's interest in e-cigarettes. Furthermore, the region has posted a growing disposable household income which means an increase in the buying power among its residents. The major growth contributors in the Asia Pacific region are China, Malaysia, and India.
NORTH AMERICAN MARKET
In 2017, the North American region is the largest e-cigarette market in the world contributing an estimated $5.2 billion in revenue to the global e-cigarette industry. It is expected that North America will continue to dominate the global e-cigarette industry through the years 2018 to 2025. In fact, by 2025, the region will contribute an estimated $17.08 billion in market value. The US is considered to be the region's major growth driver contributing approximately 96% or $16.40 billion ($17.08 billion x 96%) of the North American e-cigarette market.
Using the aforementioned data points, we can calculate the Compounded Annual Growth Rate (CAGR) of the North American e-cigarette market using a CAGR calculator:
2017 market value: $5.2 billion
2025 market value: $17.08 billion
Number of years to 2025: 8 years (2025 – 2017)
CAGR of the North American e-cigarette market: Entering the above data points in the CAGR calculator we get 16.03%.
Hence, the North American e-cigarette market will grow at a CAGR of 16.03% through the years 2018 to 2025. The global consumer's awareness on the health hazards of smoking addiction remains to be one of the most compelling reasons why there is a rapid increase in the global e-cigarette market.
• Currently, it is estimated that there are 10 million users of e-cigarettes in the US while the UK has 3 million users. The US Centers for Disease Control estimates that 3.7% of the US adult population use e-cigarette products "either every day or on some days".
• In Canada, the Waterloo University estimates that within the past 30 days, 946,000 Canadians have used e-cigarette products while 308,000 Canadians use e-cigarette products on a daily basis. This puts the Canadian e-cigarette market to stand between 308,000 to 946,000 users.
In conclusion, the increasing popularity of e-cigarette products together with well-informed consumers on the hazards that traditional cigarettes pose on one's health serve as salient growth drivers of the e-cigarette industry. The North America e-cigarette market will grow at a CAGR of 16.03% through the years 2018 to 2025. In 2017, the North America region posted a $5.2 billion in market value and is expected to grow to $17.08 billion in 2025. In 2025, it is estimated that the US will account for approximately 96% or $16.40 billion of the North American e-cigarette industry.