Middle East & Africa E-Cigarette Market Outlook, 2028

Electronic cigarettes contain liquefied nicotine, which, on being heated, provides the same effect as conventional cigarettes. It is normally labeled as environment-friendly and is available in multiple flavors. In the Middle East & African markets, the major drivers of the market are the increasing sales of these cigarettes via online platforms and growing awareness about health in the country. The introduction of new and intriguing flavors is the trend in the Middle East e-cigarette market. Let alone in South Africa, about 20% of the population uses e-cigarettes after the age of 15. Attractive flavors, such as bubble gum, menthol, cola, coffee, mint, and fruits, have been introduced in the market to attract customers. The demand for new flavors by users is motivating manufacturers to launch many more of these. For instance, a new ‘Rebel Ice’ flavor was launched in 2019 by Twisp (Proprietary) Limited, a South African e-cigarette brand.

According to the research report, “Middle East & Africa E-cigarette Market Outlook, 2028” published by Bonafide Research, the market is anticipated add USD 0.36 Billion from 2023 to 2028. E-cigarettes are associated with cost-effectiveness, safety, convenience, and less harm compared to conventional cigarettes. Via online channels and social media presence, companies are targeting consumers of different age groups by offering discounts. The major e-cigarette distributing firms operating across the region are eCiggies Online Store, Vape Africa, and VapeShop. In addition to that, the market can take advantage of the shifting consumer preference toward alternatives from conventional cigarettes. This can be attributed to the rising number of people suffering from serious illnesses caused by tobacco consumption. In the country, e-cigarettes are being sold as consumer products, resulting in their easy availability at retail outlets, kiosks, and shopping malls. Therefore, tobacco companies are investing in the development of next-generation vaping devices to lure the youth into buying these. They are considered a less harmful alternative to conventional cigarettes and are also cheaper.

Over the past few years, awareness has been rising regarding the health hazards associated with smoking. At the onset of COVID-19, the market crumbled in the initial phase by restricting transport and reducing sales in brick & mortar shops, but it acted as a break-even point. This trend has resulted in high demand for alternatives to traditional cigarettes, like e-cigarettes; as a result, sales volume online increased when compared to the previous. E-cigarettes were introduced as an alternative to traditional cigarettes. According to the estimates provided by the World Bank, 180 Million premature deaths can be avoided if smoking cigarettes can be reduced to one-half by the forecast period, and e-cigarettes are a major step toward this achievement. With the growing popularity of vaping devices, flavor and fragrance vendors are introducing a wide variety of e-liquids to attract consumers.

However, e-cigarettes and vaping products are banned in Egypt, Iran, Kuwait, Lebanon, Oman, and Qatar — although they are widely available on the black market — as regulators fear a vaping epidemic among teenagers that is similar to the one in the US. While the UAE allows the sale of e-cigarettes, regulators do not support their use as part of efforts to encourage smokers to quit, and there are curbs on their promotion and advertising. E-cigarettes were banned in Qatar in 2012 and then three years later in Oman but legalized in Bahrain and Kuwait in 2016; however, neither country immediately adopted manufacturing standards or a taxation structure. Then, in April 2019, the United Arab Emirates (UAE) Authority for Standardization and Metrology (ESMA) approved standards for nicotine-based e-cigarettes. It was the first country to develop standards for the products in the region. The goal of e-cigarette regulations in the UAE was to offer nicotine consumers less risky alternatives to combustible products. The standards set by ESMA were designed to regulate all nicotine components used in vaping products, including technical specifications, ingredients, imports, packaging, and labeling requirements in the UAE as well as a corresponding fiscal and tax structure.

On the other hand, after the success of the World Vape Show (WVS) Dubai in 2021, the first e-cigarette trade show in the region, the number of companies legally producing vapor products in the UAE has grown tremendously. During their 2022 conference, held June 16–18, WVS representatives said that they welcomed 50 percent more visitors than in 2021. During a seminar session that focused on the growth of the Middle East markets, several speakers said that the UAE and its regulatory outlook have become a blueprint for other Middle East markets such as Saudi Arabia, Kuwait, Jordan, and Egypt. In 2021, Saudi Arabia announced new regulations for e-cigarettes similar to the UAE (which in turn are similar to Europe’s Tobacco Products Directive).

Premium vaping brand RELX has officially launched in the Kingdom as more Saudi youth are resorting to e-cigarettes. The vaping products are also available in the UAE and Kuwait and signal RELX's intention to expand into the rest of the Middle East and North Africa this year. The launch comes as concerns are increasing about the popularity of vaping, with one medical expert telling Arab News the practice should not be seen as a healthier alternative to cigarettes. Due to the growing trend of e-cigarettes, Saudi Arabia has announced new regulations, similar to those in Europe, governing the standards to be adopted for e-cigarette packaging and labeling.

Recent Developments
• In April 2022, RELX International, a multinational electronic cigarettes company, lauds the recent decision by Egyptian authorities to allow the legal import and commercialization of e-cigarette products in the country. The lifting of the ban highlights the Egyptian authorities’ progressive approach to e-cigarettes. It sets the stage for creating a regulated market rich with business opportunities by serving the demand for easily accessible, quality products by legal age (adult) consumers across the country.
• In Nov 2019, the Dubai Department of Economic Development (DED) recently introduced a new activity called “Electronic cigarettes & accessories trading” under the “Tobacco and Smoking accessories trading” group. This activity is available for mainland LLCs and will legally allow the investors to engage in e-cigarette trading in the local market.
• September 2019: Before 2019, selling electronic cigarettes in Dubai was also illegal; in April 2019, the Emirates Government Consumer Supervision Agency, the Emirates Standardization and Measurement Authority (ESMA) confirmed the new regulations for electronic cigarettes: as long as the manufacturer’s electronic cigarettes meet the new standards and carry health warnings similar to cigarette packages on the product packaging.

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

Considered in this report
• Geography: Middle East & Africa
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Middle East & Africa 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
• UAE
• Saudi Arabia
• South Africa

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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Manmayi Raval

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