The Growing Trajectory of E Cigarette Industry: BIS Research’s Stance

BIS Research has been continuously tracking the trends and developments across the e-cigarette and vaporizer (e vapor) industry and has published a host of extensive market intelligence reports covering various facets of the industry. Our reports draw inferences with participation of market players through in-depth interviews. Over the last two years, we have engaged with both established and upcoming players in the industry to discuss their developments and products in order to understand the evolution of the industry.

According to analysts at BIS Research, the market has now evolved through three generations and is standing at the point of influx, wherein a plethora of companies have entered the market in absence of proper government regulation and increasing consumer preference towards alternative smoking devices. BIS Research has recently released its thorough report on Asia Pacific E-Cigarette and Vaporiser Device Market, as the region continues to emerge as one of the leading demand markets for  vaping  devices.  The report titled “APAC E-Cigarette and Vaporizer Device Market: Focus on Type, Distribution Channel, and Geography – Estimation & Forecast, 2015-2025, wherein the analysts have estimated that the Asia Pacific e-cigarette market is poised to grow over $5 billion by 2025, at a double digit CAGR from 2016 to 2025.

According to the report, the market will grow at a fluctuating rate until 2018, by when most of the regulatory and policy framework will fall into place. The growth rate is anticipated to significantly increase thereafter, with increasing revenue generation from evolving markets of China, India and Malaysia. Moreover, while disposable e-cigarettes dominated the APAC e-cigarette product market till 2015, rechargeable e-cigarettes, followed by personal vaporizers and Mods will soon take over the top market positions in terms of revenue generation. Although Malaysia dominated the market in 2015, China is expected to become the largest revenue generating country by the end of 2025, while India is expected to grow at the fastest CAGR of 43.6% throughout the forecast period and become the second largest market in the region by 2025.

The e-cigarette industry gathered pace from 2012 onwards, when tobacco giant Lorillard acquired the U.S. based e-cigarette company, ‘Blu Ecigs‘. However, the rapidly changing dynamics of the market can be understood with the exit of the parent company of the best selling e-cigarette brand (Blu) from the market and its competitor Imperial Tobacco climbing up the ladder of this fledgling market. An overall non-uniformity of taxation and regulation policies has enabled a large number of players to enter the market, significantly intensifying the competitive rivalry. According to the Global USB Rechargeable E Cigarette & Vaporizer Device Market – Estimation & Forecast, 2016-2025 report, the global e-cigarette market is poised to grow over $16 billion by 2025, at a double digit CAGR from 2016 to 2025.

The market has been largely driven by a flurry of activities including Mergers and Acquisitions, Patent Warfare, and the introduction of smart (microcontroller operated) products among others. Moreover, the emergence of Vape shops and it‘s increasing count is increasingly attracting more users through their wide variety of products and better assistance while shopping for the desired products. However, the state and local governments have initiated levying hefty taxes on e-cigarettes and this is emerging as a key challenge for the market. Also, the unregulated manufacturing process in China and the consequent rise in numbers of adverse (explosion and poisoning) incidents are other restraining factors for the e-cigarette market.

Both the reports are a comprehensive compilation of the different aspects of the e-cigarette industry, including the market share analysis and product benchmarking for top brands, Porter‘s five forces analysis, the consumer‘s perspective for buying e-cigarettes, market breakdown by product types, distribution channel, and key geographical locations. While highlighting the key driving and restraining forces for this dynamic market the report also provides a comprehensive section of the prominent consortiums, compliance, and regulatory bodies and their involvement in the e-cigarette industry.

The report has laid down special emphasis on the legal and regulatory framework, owing to the changing paradigms in the industry. Where, on one hand, the state and local governments have started levying hefty taxes on e-cigarettes and e-liquids following the likes of conventional tobacco, on the other there are several consortiums identified who are opposing the proposals and wish to back e-cigarette by scientific studies. The industry analysis has been included analyzing the impact of the five major forces to understand the overall attractiveness of the industry. The company profile section has been broken down into the publically traded companies and private companies. While the global companies have been chosen on the basis of their market developments and revenue generation, best-selling brands/companies have also been profiled in the report.

The highlights of the reports include:

  • How will the intensity of competitive rivalry evolve through the forecast period?
  • Which factors will be driving the market through the forecast period?
  • What factors are currently challenging the e-cigarette industry and how can they be addressed through the forecast period?
  • Which consortiums are active in the e-cigarette industry?
  • Estimation and forecast of the USB Rechargeable e-cigarette and vaporizer device market value through 2015-2025
  • Impact of regulations and policies on the growth of the USB Rechargeable e-cigarette device market value through the forecast period

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