Report: Global Vaping Market Reached $11.73 Billion in 2019

On April 25, it was reported that according to ResearchAndMarkets.com's "Global E-Cigarette Market Report 2020," the global e-cigarette market was valued at $11.73 billion in 2019, and it is expected to reach a compound annual growth rate (CAGR) of 17% by 2023, with a market value of $21.4 billion.

The report categorizes the e-cigarette market by product type into disposable, rechargeable, and modular. It also segments by components into tobacco, flavors, and nicotine-free, and by distribution channels into dedicated e-cigarette stores, online, supermarkets, and tobacco specialists.

Among smokers, the increasing awareness of health issues caused by smoking is driving the growth of the e-cigarette market. For example, in December 2018, British American Tobacco (BAT) launched the Vype iSwitch and Vype iSwitch Maxx, which utilize Puretech blade technology to heat e-liquids and produce vapor.

Reports indicate that vapor products do not burn tobacco, and the levels of toxic substances in vapor are significantly lower than those produced by burning tobacco. Therefore, the report states that e-cigarettes have a lower risk profile compared to traditional cigarettes.

Government regulations on e-cigarette bans are becoming increasingly strict, limiting the growth of the e-cigarette market. The report notes that many countries have banned the sale and manufacture of e-cigarettes to protect young people and children from the harmful effects and addiction of e-cigarettes.

The report states that in December 2019, the Indian government passed the "2019 Prohibition of E-Cigarettes (Production, Manufacture, Sale, Distribution, Import, Export, Transport, Storage, and Advertising) Act," which implemented a ban on e-cigarettes. The government prohibited e-cigarettes because manufacturers were promoting them as a means to help people quit smoking, but studies show that most people become addicted to e-cigarettes.

In the e-cigarette market, there is an increasing trend of mergers and acquisitions between traditional cigarette and e-cigarette manufacturers. Traditional cigarette companies and e-cigarette manufacturers are collaborating to develop products or enhance their positions in the global market.

In July 2017, British American Tobacco acquired Reynolds American for $49 billion. This acquisition benefited British American Tobacco's stable growth in high-growth emerging markets and high-margin developed markets.

In June 2018, Philip Morris International Inc. (PMI), a multinational cigarette and tobacco production company registered in Switzerland, entered into a strategic partnership with Parallax Development Corp. (Parallax). This agreement focuses on developing and commercializing effective nicotine delivery platforms that leverage advanced technologies in pulmonary medicine. Parallax Development Corp. is a life sciences development company dedicated to creating innovative, patented platforms for the safest delivery of nicotine to smokers.