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  • Number of pages : ~ 40 pages
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  • Last update : 20/10/2020
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Summary and extracts

1 Market overview

1.1 Definition and presentation

An e-cigarette is an electronic cigarette that simulates smoking.

The global market for electronic cigarette is estimated to grow rapidly. Amongst reasons for this are the growth of e-commerce which will make distribution easier, but also the decrease in costs and increase in efficiency (for example longer lasting batteries) which will increase demand for the product. The US, the UK and France are the largest markets in the world.

In the UK, the number of users is likely to increase as a result of a willingness to shift from cigarettes to alternatives. Moreover, the product is extremely popular amongst Millennials, who are attracted by operational traits, design, the wide range of different tastes available. In light of this, more players are entering the market and contributing with innovation such as customization. Together, these factors are what will drive the coming years’ growth. In the first half of 2019, 69 vaping shops opened in the UK, making it the 6th largest industry in the UK when measured by new store openings. [BBC]

The UK market is currently fragmented and characterized by small players who have launched themselves on the internet and into the opening of physical shops. Nevertheless, we also find larger players such as Juul, Altria Group, British American Tobacco, Imperial Brands, Japan Tobacco, and Philip Morris.

Trends in the market include a growing concern for whether the product is as healthy as the marketing discloses. Moreover, on the supply side, we see an ever-expanding product offering with different flavors, shapes, and customization in the former two characteristics. Included in popular tastes are for example champagne and tiramisu.

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the e-cigarette market | United Kingdom

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