Growth of the Vaping Industry Going Forward
The vaping industry is growing astronomically every year. New lines of products are coming out every week. Online sales are up. Sales at brick-and-mortar shops are skyrocketing. Despite ongoing efforts to demonize vaping, more people are putting down combustible cigarettes and picking up vapes to get their nicotine fix.
This is all good news for the vaping industry. But exactly how much is it growing? Is there a limit to the expansion? Is the growth expected to slow down anytime soon?
In this article we’ll look at the most recent market reports and projections, particularly looking at the emerging vaping market in the Asia-Pacific Market and the effects of T-vapor, I-Quit-Ordinary-Smoking (iQOS) systems which aren’t yet legal in the United States but are shaking up the overseas markets.
A Global Economy
According to a release on PR Newswire, the biggest economy for vaping by far is in the Asia-Pacific market, where an increase in industrialization and urbanization has led to far higher demand for vape products. In particular, China has been the forerunner in the regional e-cigarette industry, with an estimated 40.3% market share in 2017.
After the U.S. and the U.K., China is estimated to be the third-largest e-cigarette consumer market globally in 2017, which is further expected to grow during the forecast period. This offsets pushback from other countries in the region like Singapore and the Philippines, which have cracked down on the sale and distribution of vaping equipment by raiding vape shops and confiscating vapor products coming into the country.
These numbers follow similar reports from October 2017 by Research and Marketing research which projected, in their report titled “Global E-Cigarette and Vaporizer Market Analysis & Trends – Industry Forecast to 2025” that the industry as a whole could reach $61 billion in sales by 2025.
“The Global E-Cigarette and Vaporizer Market is poised to grow at a CAGR of around 20.8% over the next decade to reach approximately $61.4 billion by 2025. Some of the prominent trends that the market is witnessing include combination of E-cigarette and cannabis industry and improvements in device technology and product innovation.”
This figure far surpassed some earlier reports which had the growth by 2025 to reach about $47 billion. Both of these numbers are extremely encouraging to future of vaping.
The Growth of Heat-Not-Burn
The overseas markets have been brewing up alternative products that are poised to change the way we think about vaping. In particular, the emergence of heat-not-burn tobacco products like T-Vapor (literally “tobacco-vapor,” a product that vaporizes a cartridge of loose leaf tobacco) and iQOS. These are products being developed by Big Tobacco companies as non-combustible tobacco products, but they’re still tobacco products and are gaining popularity in places like Japan, where liquid nicotine is banned.
The iQOS systems that have been promoted in countries like the U.K. by tobacco companies are changing the overseas markets in two important ways: they are acknowledging the dangers of combustible cigarettes while at the same time adding an extra level of market competition (not to mention attempting to keep tobacco a viable product). The iQOS systems are pending FDA approval here in the United States, but Phillip Morris has been the subject of a lawsuit by investors concerned about the safety of the product and the company’s self-reported test results.
A similar phenomenon is happening in Japan, where T-Vapor products are proving to be the largest growth industry in the e-cigarette market over there. Like iQOS, T-Vapor uses real tobacco and comes in two versions: “heat-not-burn” and “infused.” The market for t-vapor is projected to witness the fastest growth, around 45%, during the forecast period. Heat-not-burn tobacco products can further be categorized into disposable and rechargeable types, while vapes can be segmented into open tank and closed system types.
It remains to be seen how these alternate tobacco products will be viewed in countries where largely tobacco-free devices that vaporize liquids instead of solids have already taken hold. Ultimately, any product that discourages people from lighting something on fire and inhaling the resulting smoke has to be seen as a step in the right direction.