Italy E-cigarette Market Overview, 2028

Nicotine vapes (e-cigarettes) are allowed in Italy, and the country has 721,900 vapers, with an adult vaping prevalence of 1.37%. Vaping devices can only be sold to people over the age of 18, the packaging must include a health warning, and the amount of nicotine they can contain is limited. Recent advances in the Italian e-cigarette market include the introduction of e-cigarettes as lifestyle goods or as less dangerous nicotine substitutes, as well as the availability of various flavours such as peach, vanilla, mint, chocolate, and so on. The emergence of simple and powerful distribution methods, particularly e-commerce platforms and internet websites, is a significant and notable development. After the Senate passed the 2021 Budget Law, the Italian government levied higher excise levies on e-liquids in early 2021. (Legge di bilancio). The tariff on nicotine-containing e-liquids has been hiked to 15% as of January 1. The amendment also calls for a 5% rise each year until 2023. Nicotine-free e-liquids will face a 10% excise tax, which will rise to 15% in 2022 and 20% in 2023. The greater awareness of the possibilities of electronic cigarettes, as well as the massive sums of money poured in by investors, have resulted in large marketing budgets for companies in this sector, which has helped to expand the potential user base for these devices. Even after the state abruptly doubled taxes on e-cigarettes roughly two and a half years ago, the Italian e-cigarette industry appears to have responded positively. The expanding number of users of these gadgets continues to be such that investments in this area remain quite appealing. The primary participants in the e-cigarette market are Philip Morris International, British American Tobacco, and Yesmoke.

According to the research report, "Italy E-cigarette Market Overview, 2028," published by Bonafide Research, the market is projected to add USD 218.69 billion by 2028. In terms of product type, the modular devices category held the largest market at around 50% in 2022. The key element driving the category is the devices' high-level customization ability to integrate multiple functionalities and components. These elements and components, depending on individual preferences, alter the flavour and volume of vapour produced by the device. The regular organisation of vaping events, including conferences and contests, increases the need for modular devices. Furthermore, the Next Generation e-cigarette category is predicted to develop significantly throughout the projection period due to features such as portability, lightweight, and discretion. Because of their popularity among teenagers, flavours such as tobacco and botanical account for more than 47% of the overall market share. Fruit flavour is expected to develop quickly during the forecast period due to rising consumer demand, particularly for the taste of real fruits. The increasing number of smokers attempting to stop their habit by substituting e-cigarettes for cigarettes is the primary driver of demand for this product. The choice of flavours and nicotine levels is now so diverse that every smoker may be able to discover an alternative. As a result, many multinational tobacco firms have not only developed their electronic cigarette brands during the previous decade but have also bought existing companies. The modular/rechargeable e-cigarette is the top revenue-generating device type in the entire Italian e-cigarette industry, owing to higher consumer demand attributed to the significant customization afforded by such cigarettes.

As per the World Bank, Italy's population will be 59.07 million in 2021, with 28.78 million men and 30.29 million women. The majority of the population, 38.40 million people, is between the ages of 15 and 65. 10.8 million People Rural areas have 56.5 million people, while urban areas have 56.5 million. The World Bank estimated that Italy's GDP in 2021 would be 2.1 trillion USD, with an inflation rate of 1.9% and a per capita income of US$35,551.3. According to a recent survey, overall population awareness of e-cigarettes was 91.1%; it was lowest among women (87.8%), the elderly (78.4%), those with less education (84.1%), and never-smokers (89.0%). E-cigarette use was 6.8% overall and negatively associated with age, with no significant difference seen by gender. In terms of smoking status, 2.6% of never-smokers, 7.0% of ex-smokers, and 20.4% of current smokers had at least one e-cigarette experience. Regular e-cigarette use was 1.2% overall, 1.5% among males, and 0.9% among women, with youth (2.4%) and existing smokers (3.7%) having the greatest rates. Among 36 regular e-cigarette users, 22.0% continued to smoke, 67.7% reduced traditional cigarette usage, and 10.4% quit smoking.

The EU Tobacco Products Directive (TPD) is followed by Italy (2014). Legislative Decree 12 January 2016, No. 6 is the Italian law that implements the TPD. As a result, e-cigarettes are controlled in the same way that tobacco products are. Indoor vaping restrictions are in effect in government facilities. Recent (2018) legislative amendments have rendered distance and online transactions illegal. Some online critics are concerned that a recent tax increase on e-cigarettes but not heated tobacco products may discourage safer nicotine use. On December 13, 2018, the Chamber of Deputies approved a tax order that will decrease the present tariff on nicotine-containing e-liquids for electronic cigarettes by 80%. This would cut the current hefty tariff of over 4 euros for a 10 ml bottle to 80 cents (for e-liquids containing nicotine).

The offline distribution channel, which comprises retail establishments, held the largest market share. E-cigarettes were previously available in retail venues such as vape shops and gas stations. These stores helped clients choose from a variety of gadgets and e-liquids. Furthermore, vape shops that allow customers to try out and test these devices before purchasing them are likely to increase retail store segment development throughout the forecast period. The increased sales opportunity for e-cigarettes via online channels prompted suppliers to strengthen their online purchase processes in terms of security and dependability, hence increasing demand for these items online. With the increasing popularity of vaping devices, flavor and fragrance vendors are releasing a wide range of e-liquids to attract customers. Different flavors, such as menthol, mint, chocolate, cola, bubble gum, and fusions of other fruits and flavouring substances are luring a large number of consumers to adopt these e-cigarette devices.

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Manmayi Raval

Research Consultant

Covid-19 Impact:
Due to the COVID-19 pandemic, the Italian e-cigarette market witnessed a sharp decline. The pandemic forced people to pay attention to their health and quit habits like smoking to tackle this situation. Thus, it impeded the demand for e-cigarettes throughout the pandemic period. Further, retail stores and outlets also stopped offering their products to abide by the government rules, which hampered the growth of the e-cigarette market. On the contrary, the ease of lockdown restrictions led to an increase in the sales of e-cigarettes, like before.

Considered in this report
• Geography: Italy
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Italy E-Cigarette market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

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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.