Europe E-Cigarette Market Outlook, 2028

The e-cigarette market in Europe is on the rise due to the increased use by consumers driven by health concerns and has observed desired results in their attempts to quit/decrease their usage of conventional/combustible cigarettes. Despite concerns being voiced by a few medical professionals over the long-term usage of e-cigarettes, the low-risk factor associated with the use of e-cigarettes in comparison to conventional/combustible cigarettes is driving the growth of the market in the region. Aiming to reduce their use of conventional/combustible cigarettes, consumers in the region are increasingly using use e-cigarettes concurrently. Also, as e-cigarettes mimic the experience of smoking conventional/combustible cigarettes, consumers are increasingly using them to satisfy their nicotine dependency. E-cigarettes do not produce the tar that is produced by traditional cigarettes, which is the main reason for lung cancer.

According to the research report, “Europe E-cigarette Market Outlook, 2028” published by Bonafide Research, the market is projected to add USD 9.64 Billion from 2023 to 2028. As these products are being offered in nicotine and non-nicotine forms, most of the population considers them better alternatives. Thus, the product is gaining mainstream awareness, and more smokers are trying and accepting e-cigarettes as an alternative to their tobacco cigarettes. In addition, according to European Public Health Association, about 15% of the European population has tried e-cigarettes at least once in their life, either for a change to their regular cigarettes or to have a new experience. This dual-use has significantly increased the number of e-cigarette users in the region and is expected to drive the market over the forecast period, as it has been observed that dual users usually aim to gradually decrease their use of conventional/ combustible cigarettes over time, which increases the prospect of repeat purchase of e-cigarettes in the region.

Specialist retail stores such as tobacconists and vape shops have been observed to be the most popular channel. The online retail channel has been impacted by the introduction of the Tobacco Products Directive 2014/14/EU (TPD) in the European Union, owing to which a few countries in the region have banned cross-border distance sales of e-cigarettes.

The United Kingdom is the largest market for e-cigarettes in Europe, and the second-largest market in the world, owing to which it is driving the market in the region. E-cigarette use in the country is growing due to the rising number of users, coupled with support from health authorities. According to the obtained data, in 2021, 7% of the UK 11-15-year-olds have vaped. The age range with the most UK vapers is 35-44 years old, accounting for 30.8%. According to Action on Smoking & Health, the most common reason for vaping in the United Kingdom is an aid to quitting smoking. The authorities in the United Kingdom believe these devices are a means for people to transition from the much harmful habit of using conventional/combustible cigarettes.

The European e-cigarette market is consolidated and comprises a few large players who hold most of the share in the market. Key strategies adopted by the large players are product innovation and mergers and acquisitions. Key players are investing in R&D to develop and launch new and innovative products to cater to the ever-increasing demand for new products from consumers across the world. The players are continuously launching new products to retain and strengthen their market positions. For instance, Imperial Blue launched its heated cigarette products in the Czech Republic in 2021. The company has invested in heated cigarette products in several key markets in Europe as a part of the new strategy of its commitment to accelerate its new category business. Some of the major players in the market are British American Tobacco PLC, Philip Morris International Inc., Altria Group, Inc., Imperial Brands PLC, and Japan Tobacco Inc.

The Europe e-cigarette market is currently witnessing robust growth. An e-cigarette is a battery-operated electronic device that enhances the experience of smoking cigarettes. It delivers a dosage of vaporized nicotine or flavored solutions to be inhaled by the users. An e-cigarette consists of heating elements (atomizer), a mouthpiece that assists in inhaling, and a reservoir for holding the liquid solution. It is relatively a safer alternative to conventional cigarettes as it does not burn tobacco, which generates tar and carbon monoxide. The aggressive promotions of e-cigarettes by manufacturers in the European region have attracted a large number of consumers, especially young adults and adolescents.

According to the collected data, the adult population of the countries analyzed exceeded 335 million in 2020. In these countries, the number of smokers is 82 million (24% of the adult population). More than 656,000 annual deaths from tobacco-related diseases are reported, and the total cost to national health systems exceeds €115 billion per year. Latvia, Greece, and Romania show the highest smoking rates with more than one-third of smokers in the adult population. The lowest smoking numbers are found in Denmark with 16% and the United Kingdom leading in tobacco prevention with a smoking percentage of 12.8 among the grown-up population. Vaping numbers show a slightly negative correlation to smoking numbers indicating that a more prevalent use of e-cigarettes might correspond to decreasing smoking rates.

By analyzing the distribution channels and workforce figures, 1,600 e-cigarette production companies could be identified in 11 of the surveyed countries (Distribution channels and workforce figures could not be validated for the markets of Belgium, Latvia, and Poland). Almost all of them are small and medium-sized enterprises. In addition, almost 600 companies operate in import and distribution. There are more than 12,000 specialized shops in the retail sector, but e-cigarette products are also available in almost 150,000 general stores. On the other hand, shares of online-only shops are growing at a higher rate in the Netherlands and Ireland. Northern and western European countries tend to show a higher level of e-cigarette usage with greater market volumes and higher employment numbers in the sector. It is particularly relevant to highlight the volume of the workforce directly employed by the e-cigarette industry, amounting to 77,000 workforce units.

While the vaping market is growing in Europe, the same combustion tobacco products regulation is often applied to vaping products, making it impossible to inform users about the health risk reduction potential of these new devices. The U.K., Germany, Poland, and France generate the maximum revenue. Russia as a market has been identified as an opportunity for vape shop owners, owing to the high smoking population and low vape shop count. The implementation of the EU-TPD was followed by the shutting down of hundreds of vape shops in various countries, Spain being one such example. The thriving e-cigarette industry may further be adversely affected due to the imposition of taxation across a number of countries. In terms of products, bottled e-liquids, personal vaporizers, batteries, and atomizers are the most widely sold products through vape shops while rechargeable e-cigarettes and disposables are commonly available in convenience stores and supermarkets.

Recent Developments
• In November 2021, Imperial Blue launched its heated cigarette products in the Czech Republic. The company invested in heated cigarette products in several key markets in Europe as a part of its new strategy to establish a targeted and sustainable next-generation product business.
• In August 2021, the world e-cigarette alliance announced the launch of the e-cigarette bus, as a part of organizations backing vaping, beating smoking (supporting e-cigarettes and giving up cigarettes). The bus toured across Europe to carry out education on reducing tobacco hazards.
• In May 2020, the United Kingdom-based Vape Dinner Lady partnered with ASDA supermarkets to launch its new range of e-cigarettes, available both online and across 350 ASDA supermarket stores. The new disposable e-cigarette is the UK's first pre-filled with premium quality Dinner Lady e-liquid. It will feature two new flavors, Pink Berry and Fresh Menthol.

Major Companies present in the market:
British American Tobacco, Turning Point Brands Inc., Philip Morris International Inc., imperial brands, ITC, Japan Tobacco, Shenzhen IVPS Technology Co. Ltd., KangerTech, Innokin Technology

Considered in this report
• Geography: Europe
• Historic year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report
• Europe E-Cigarette market with its value and forecast along with its segments
• Country-wise e-cigarette appliances market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report
• Germany
• United Kingdom
• France
• Spain
• Italy
• Russia

By Product
• Modular E-Cigarette
• Rechargeable E-Cigarette
• Next-Generation E-Cigarette
• Disposable E-Cigarette
• Others

By Flavour
• Tobacco
• Botanical
• Fruit
• Sweet
• Beverage
• Others

By Battery Mode
• Automatic E-cigarette
• Manual E-cigarette

By Distribution Channel
• Offline
• Online

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual reports of companies, and analyzing government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the e-cigarette industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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