07 May 2020
Visiongain has launched a new report Next-Generation Products in Tobacco Market Report 2020-2030: Forecasts by Product Type (Tobacco Heating Products, Vapour Products, Snus, and E-cigarettes). PLUS Profiles of Leading Companies and Regional and Leading National Market Analysis.
Global Market Overview
The new report from business intelligence provider Visiongain offers an updated outlook for the global next generation products in tobacco market. Global next-generation products in the tobacco market was valued at US$19.9 billion in 2019 and is anticipated to grow at a CAGR of 12.2% from 2020-2030 to reach at market value of US$48.6 billion by 2030. The market is anticipated to grow at a CAGR of 11.4% in the first half of the forecast period while the second half of the forecast period is anticipated to grow at CAGR of 12.9%.
Asia’s largest vaping market is China
Surprising to most, Asia’s largest vaping market (in terms of number of vape users per 100 residents) is China. Currently, there are an estimated 1 million vapers in China who spend around $117 million per year on vaping and e-cigarette products. The rapid growth of this market was mostly due to a lack of regulation by the federal government, which gave room for distributors to set up their businesses and market their vape kits without government pressure. Asia-Pacific next-generation products in the tobacco market by value was valued at US$2.8 billion in 2019 and is anticipated to grow at a CAGR of 11.9% from 2020-2030 to reach at market value of US$6.7 billion by 2030. The Asia-Pacific revenue is anticipated to grow at a CAGR of 11.2% in the first half of the forecast period while the second half of the forecast period is anticipated to grow at CAGR of 12.7%.
Europe has a wide vaping market, but this market is mostly driven by just a handful of its countries. The highest growth vaping market in Europe is the United Kingdom, where there are around 2.8 million vape users. This number represents a four-fold increase from 2012, when there were only 700,000 vape users in the country. In the UK, the e-cigarette has become one of the fastest-growing supermarket products by volume and value with a 50% year-on-year increase to around 17.3 million units sold last year.
Russia now has over 1.5 million vape users. Late to join the revolution, the country’s first vape shop didn’t open until 2014. Exploding in popularity, there are now over 500 vape shops in Moscow alone, and over 1400 shops throughout Russia. Similarly, Germany is now home to over two million vape users; a number that is expected to rise tremendously in the near future.
Driving Factors in the Global Market
Changing Consumer Preferences Towards Less Harmful Tobacco Products
Increase in awareness and change in consumer perception, coupled with their shift towards less harmful tobacco products are major factors driving the growth of the global next-generation products in the tobacco industry market, currently. Next generation products are better alternatives over the traditional products such as cigarette owing to their ability to reduce the risk of tobacco-related diseases by eliminating the inhalation of toxicants since; these products are designed to simulate tobacco smoking.
Increasing Investment by Key Players
Increasing investments in next-generation products by the world’s leading key players in tobacco industry such as British American Tobacco and Imperial Tobacco, owing to harm reduction strategies is one among the major factors expected to propel the growth of the target market during the forecast period.
Key market players in the global next-generation products in tobacco market can focus on the research and development of less risky alternatives to traditional products, coupled with the cost-effective products and can create lucrative opportunities for manufacturers of next-generation products. The regions of Asia-Pacific and Latin America offer good opportunities for the manufacturers of next-generation products in tobacco. In order to succeed, companies need to innovate and appeal to the most recent consumer trends. “e-cigarettes” is one of these trends that will continue developing in the nearest future. The rising popularity of smokeless tobacco is another factor that can create opportunities for manufacturers of next-generation products. For instance, BAT was first to introduce smokeless Swedish-style Snus, comparatively less harmful than cigarettes. Snus is such kind of innovations that facilitate to lessen the influence of tobacco on the community.
The amount and quality of vapor an electronic cigarette can produce determines how well it replicates the experience of smoking tobacco. The vapor system and battery power are key factors to quality vapor. Disposable electronic cigarette: Uses a cartomizer system and small battery with low to medium vapor. Refillable electronic cigarette: Uses a cartomizer or clearomizer with an eGo manual battery, producing medium to high vapor. Variable voltage/rebuildable electronic cigarette: Uses a high voltage battery with advanced vapor system to create very high vapor.
Global next-generation products in the tobacco market by age group was valued at US$19.9 billion in 2019 and is anticipated to grow at a CAGR of 12.2% from 2020-2030 to reach at market value of US$48.6 billion by 2030. The global market is anticipated to grow at a CAGR of 11.4% in the first half of the forecast period while the second half of the forecast period is anticipated to grow at CAGR of 12.9%. 18-30 age group is expected to reach at a market value of US$19.1 billion by 2030, growing at a CAGR of 12.7% from 2020-2030.31-44 age group is the second largest segment is expected to grow at a CAGR of 12.4% from 2020-2030 to reach at a market value of US$15.0 billion by 2030.
The Atomizer segment is expected to reach at a market value of US$16.5 billion by 2030, growing at a CAGR of 12.5% from 2020-2030.Vape Mod is the second largest segment is expected to grow at a CARG of 12.4% from 2020-2030 to reach at a market value of US$10.2 billion by 2030.
The e-Cigarettes segment is expected to reach at a market value of US$16.5 billion by 2030, growing at a CAGR of 12.1% from 2020-2030. Vaps is the second largest segment is expected to grow at a CARG of 12.5% from 2020-2030 to reach at a market value of US$13.6 billion by 2030.
Notes for Editors
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Visiongain is one of the fastest growing and most innovative independent media companies in Europe. Based in London, UK, Visiongain produces a host of business-to-business reports focusing on the automotive, aviation, chemicals, cyber, defence, energy, food & drink, materials, packaging, pharmaceutical and utilities sectors.
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