US E-Cigarette Market Size Likely to Surpass at a CAGR of 8.7% By 2033

As per the current market research conducted by the CMI Team, the US E-Cigarette Market size is expected to record a CAGR of 8.7% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 527.4 Million. By 2033, the valuation is anticipated to reach USD 1,117.4 Million.

US E-Cigarette Market: Growth Factors and Dynamics

• Online Sales Growth: The diffusion of e-commerce made it easy for the consumer to buy e-cigarettes because it is wide enough in terms of its display. This convenience and varied offer succeeded in increasing sales through online shopping platforms drastically and more radically with consumers who prefer to shop while being at home.

• Social Attitudes Shift: The social acceptance of vaping has increased lately, and with this increased trend, people have taken more to e-cigarettes. The shifting attitude of people also helped newly acquired consumers to come into the market, hence stabilizing market penetration and expansion.

• Targeted Marketing: E-cigarette manufacturers target the young generation as their target market. Product benefits are highlighted for marketing the product brand to their new target group. This has helped them significantly grow their customer base and increase the market in general.

• Policy Changes: Although changing regulations is challenging for businesses, the companies found a way to change their product and marketing strategies. Adaptability to legal changes has enabled the e-cigarette business to remain in steady growth even with tighter regulatory landscapes.

• Competitive Landscape: The market is highly competitive with traditional tobacco companies and new entrants trying to gain market share. Companies are going hard to differentiate their products through innovations, quality, and distinctive branding strategies to gain individuality in the market.

• Trends in Consolidation: Large tobacco firms are acquiring smaller, niche e-cigarette brands to expand their portfolio and strengthen their market presence. Consequently, although there are fewer players, they are bigger and only well-established giants remain in the market.

• Consumer Preferences: A recent trend is toward e-cigarettes that provide a personalized experience. Therefore, many consumers seek unique features, advanced technology, and an extensive variety of flavors to raise their experience while vaping, which creates the need for innovation and product diversification.

• Health Regulations: Some products have been limited to accommodate stricter health regulations, particularly flavor and advertisement. E-cigarette companies have to balance adhering to regulation requirements while remaining competitive stringently. Regulatory pressure has prompted the firms to be innovative and proactive.

• Market Education: Educating consumers on the difference between smoking and vaping is another important area to focus more on. With more people knowing about the shift from smoking to e-cigarettes, an uptake of the adoption of e-cigarettes might help in expanding the overall market.

US E-Cigarette Market: Partnership and Acquisitions

• In 2024, Japan Tobacco International unveiled a marketing campaign highlighting the health benefits of switching traditional cigarettes to their e-cigarette products. This initiative targets adult smokers, focusing on the reduced harm associated with vaping compared to conventional smoking, and aims to encourage a shift towards less harmful alternatives.

• In 2024, British American Tobacco (BAT) announced a strategic partnership with a technology firm to enhance its product development capabilities in the e-cigarette segment. This collaboration aims to leverage advanced technologies to innovate and improve product offerings, positioning BAT for greater competitiveness in a rapidly evolving market.

• In 2024, Japan Tobacco International (JTI) launched a new brand of heated tobacco products called “with,” alongside a new device designed to expand its product offerings in the U.S. market. This introduction reflects JTI’s commitment to diversifying its portfolio and catering to changing consumer preferences for less harmful alternatives to traditional tobacco products.

Report Scope

US E-Cigarette Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the US E-Cigarette Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Positive Impact of COVID-19 on the E-Cigarette Market in the US: The COVID-19 pandemic benefited the e-cigarette market in the United States due to more people opting for alternatives instead of traditional smoking. With health issues on the increase, most smokers resorted to e-cigarettes as the next viable alternative since they were thought to be less harmful compared to the latter. In addition, increased online shopping helped promote sales of e-cigarettes digitally since companies avoided mediates, and went straight to consumers. This change led the brands to intensify their presence on the internet and increased customer interactions. The pandemic also inspired the feeling of product innovation as companies began to bring newer flavors and devices into the market that caught customers’ attention. And since they were spending more time indoors, the number of personal e-cigarettes kept growing, which further rejuvenated the market after the decline period. With the pandemic’s beginning, numerous growth and adaptation narratives emerged in e-cigarettes.

• Negative Effects of COVID-19 on the U.S. E-Cigarette Industry: Although there were some positive effects, the COVID-19 pandemic had negative implications for the U.S. e-cigarette industry. The pandemic caused an upset in supply chains, made essential materials less available, and took the entire production process longer to complete. Most retail shops, especially the specialty ones, were compelled to close for a while, resulting in lost sales and less access by their clients. Health worries associated with vaping also became more of an issue due to the pandemic, forcing some customers to quit the habit. Regulatory forces increased when governments became more worried about public health; therefore, there were improved rules and regulations concerning the sales and marketing of e-cigarettes. The scenario created an atmosphere of uncertainty for businesses, hence limiting long-range planning and investment. In general, the market has had to fight its way through COVID-19, which made businesses more agile in preserving their competitive advantage.

• Current Market Scenario: The US e-cigarette industry is quite strong and rapidly growing. The return of consumers to brick-and-mortar stores combined with easing restrictions has rebooted sales, further supported by steady demand for vaping products. Innovations are mostly identified in companies that innovate new devices and flavors that target consumers with varying tastes. Sales via the online channel remain firm due to easy and accessible sales and buying. The market continues to influence the regulatory change that affects compliance and the development of safer products by the companies. This has led to more education of the consumer on public health campaigns targeting awareness about the dangers that face vaping. The fluid environment brings challenges and opportunities as key players continue to navigate evolving consumer demand and shifting regulatory lands; the environment, therefore, creates scope for sustained growth over the next few years.

List of the prominent players in the US E-Cigarette Market:

• Vuse
• JUUL Labs Inc.
• Altria Group Inc.
• British American Tobacco
• NJOY
• Elf Bar
• Breeze Smoke
• Geekvape
• Imperial Brands
• Japan Tobacco Inc.
• ePuffer Ltd.
• Shenzhen IVPS Technology Co. Ltd.
• Shenzhen KangerTech Technology Co. Ltd.
• PhixVapor
• VMR Products
• Others

The US E-Cigarette Market is segmented as follows:

By Type of Device

• Modular E-Cigarette
• Rechargeable E-Cigarette
• Next-Generation E-Cigarette
• Disposable E-Cigarette

By Flavor

• Tobacco
• Botanical
• Fruit
• Sweet
• Beverage
• Others

By Mode of Operation

• Automatic E-Cigarette
• Manual E-Cigarette

By Distribution Channel

• Specialty E-Cig Shops
• Online
• Supermarkets and Hypermarkets
• Tobacconist
• Others