E-Cigarettes have been dominating the vaping market with new technology being implemented to improve efficiency and outlook. With global markets recovering from the pandemic, the Vaping industry has been working on new projects set to give the industry an edge. The 2021 global market trend features an overview of the market size, segmented market growth, market share, competitive outlook, technological advancements, and new horizons for the vaping industry. The industry constitutes some of the largest tobacco industry players collaborating with tech companies to develop world class vaping devices.
To best understand the industry’s current and emerging trends, we should look at primary factors like manufacturers, production levels, and sales regions. Developing a knowledge base at the primary level will help scope and analyze the potential direction the industry is set to tech in the next few years.
Market Overview
With an initial market value of $10.104 billion in 2017, the industry is set to triple its value to approximately $30.095 billion within the next three years with a CAGR of 20.19%, according to The Global E-cigarette and Vaping Market Research report featured in Global e-cigarette analysis 2021. This growth has been attributed to the rising global health concerns associated with the use of traditional tobacco cigarettes. These concerns have created an opportunity for e-cigarettes to dominate the market with customized, reusable, and easy to dispose of e-cigarettes. The dynamic market is constantly demanding the development and innovation of improved vapor delivery systems and other vaping products.
Over the years, E-Cigarettes have realized huge returns in terms of investment, attracting the big companies in the tobacco industry to exploit this potential. This investment wave has seen large tobacco companies founding their production lines or acquiring pre existing companies. This move has greatly shifted the marketing landscape of e-cigarettes, with companies investing a lot to push their product. In the upcoming year, the use of e-cigarettes is set to increase due to the increased awareness of massive advertisement on the product by different companies.
E-cigarettes were originally invented in China but have found their footing in the Northern American market. Since its introduction in 2006, the United States has actively participated in its growth, having the cigarettes’ largest distribution network. The country has also developed over 3000 vape flavors, with approximately 300 new flavors being produced every month. The Canadian market has been slow in adopting e-cigarettes, a trend that has been projected to change within.
Health concerns
Several organizations have been trying to create health awareness on the use of cigarettes. E-cigarettes are currently undergoing further modifications to address health concerns brought on by the use of cigarettes. These cigarettes are arguably the best alternative compared to traditional cigarettes as they are considered less toxic.
Research shows that individuals using e-cigarettes have equal amounts of carcinogen with people on nicotine-replacement therapies. These study results show that e-cigarettes are relatively safer compared to traditional tobacco-based cigarettes.
Marketing
With limited access to mainstream media, the vaping industry has majorly relied on online platforms to effectively market their products. With the currently digitalized world, it is easier to reach a huge market base through social media. Some of the popular sites used are Facebook, YouTube, Instagram, and Reddit community. Key players in the industry have also developed their vaping websites to promote and educate customers on their products.
To beat some of the strict measures put by authorities preventing advertisement of vaping products, companies have developed new strategies set to help increase market awareness;
- Scholarships- Companies are sponsoring students to write essays on Vaping products and how they benefit society. This incentive has seen students receive between $250 and $5000. This has been effective in popularizing vape use within the student population.
- Social media- being the most effective if not the only medium of marketing, companies are creating a social media frenzy investing heavily to create an online buzz on their product.
- Events and concerts- Companies are set to sponsor and organize events and concerts featuring famous artists. These events provide the best front to market and distribute vape products.
The vaping industry is fast-growing, etching its presence in the European and Asian markets.