Vapouround magazine Issue 06 | Page 42

NEWS MARKET RESEARCH EXPERTS PREDICT GLOBAL VAPE MARKET WILL REACH OVER $50 Billion By 2025 Research and Markets, the world’s largest market research store, has predicted that the worldwide market for vape products will reach approximately US$32 billion by 2021 and more than US $50 billion by 2025. I ts report “Global Vape Market Strategic Assessment and Forecast Till 2021” says that factors driving the growth of the market include consumers’ perception of vapor products as an alternative to traditional tobacco cigarettes. The report said: “There is increased desire among consumers worldwide to quit smoking tobacco and this has made vaping a rapidly growing concept worldwide. “The global sales volume of traditional cigarettes has declined owing to an increase in sales of e-cigarette and vaping. The US witnessed about 19% decline altogether in traditional cigarette sales among adults, i.e., a drop from 20 of every 100 adults (19.8%) in 2008 to nearly 16 of every 100 adults (15.7%) in 2015. “Due to this, the majority of the global players in the tobacco industry witnessed a massive decline in the shipment of traditional cigarettes in 2015, prompting bigger tobacco companies like Altria Group, Imperial Tobacco, and Reynolds American to rush into the vapor products market. “Also, the increasing number of deaths caused by smoking-related cancer has propelled people to stop smoking traditional cigarettes. For instance, as per the US government, approximately 480,000 people, due to active smoking, and nearly 42,000 people, due to passive 42 ISSUE 06 VAPOUROUND MAGAZINE smoking, die in the country every year. The tobacco smoking is attributed to one in every five deaths in the US.” It lists increasing government regulation of the vaping industry as one of the major challenges faced by the industry and points out that vape products are banned in many major economies such as Brazil, Japan, and Indonesia. It adds: “Also, the governments of Poland and India are considering imposing a complete ban on the sale and use of these products. “In March 2016, the US Department of Transportation (DOT) banned the use of e-cigarette, vape pens and vaporizer or vapes in flights. “Regulatory bodies are still not clear on how much nicotine or other chemicals are actually being inhaled by the body while vaping. In addition, the effectiveness of these products in helping people quit smoking has not been fully studied.” In a second major report “Global E-Cigarette & Vaporizer Market Analysis & Forecast Through 2015 to 2025” Research and Markets predicts that the worldwide vape products market will rise to US$50 billion by 2025. It says: “The global e-cigarette market is expected to grow over $50 billion by 2025, at an estimated compound annual growth rate (CAGR) of 22.36% from 2015 to 2025. “The market will witness a staggering growth until 2017, by when most of the regulatory and policy framework will fall into place. The growth rate will significantly increase thereafter, with significant revenue generation from evolving markets of APAC and Europe. “Moreover, while disposable e-cigarettes dominated the global e-cigarette product market till 2014, rechargeable e-cigarettes, followed by personal vaporizers and mods will soon take over the top market positions in terms of revenue generation. “The U.S. market will continue with its dominance through the forecast period, however, China is expected to grow at the fastest CAGR to become the second largest revenue generating co untry by the end of 2025.”