Also known as: e-cigarette, ecigs, electronic cigarette, vapes, the UK e-cigarette market has exploded in recent years and a new report suggests this could be just the beginning.
The e-cigarette market size in the UK is expected to grow by £990M over the next few years. The decreasing number of smokers in the region and the growing awareness about the safety of e-cigarettes over traditional smoking products are the key drivers for the growth, according to market analysts, Technavio
Why are e-cigarettes getting more popular?
E-cigarettes are gaining traction as they are a widely accepted and convenient alternative to traditional tobacco products. They are easily available, cost-effective, and widely accepted as a smoking cessation device.
E-cigarettes prove to be more effective for smoking cessation compared to nicotine gums and patches. Increasing awareness about the health risks associated with smoking, especially among youngsters and females, has resulted in a decline in the number of tobacco consumers.
This has further opened up opportunities for the e-cig market. Moreover, increasing research in to discover their active ingredients, such as nicotine and other chemicals, has also positively influenced the market.
Another reason for the expansion in the ecigs market in the UK is that they are considered safer than tobacco products. As peoples’ lifestyle changes are moving towards cleaner habits, so too has the desire to move away from expensive, smelly cigarettes.
They do not produce smoke and do not contain many of the harmful toxins and chemicals found in traditional cigarette smoke, making them a safer option for consumers. Increasing awareness about the health benefits is expected to drive the demand for these products in the coming years.
Worldwide, smoking tobacco products causes over six million deaths annually. In addition to the six hundred thousand non-smokers who are harmed by passive smoking.
Smoking tobacco is one of the main risk factors for lung cancer, which is the most common form of cancer in the world.
It is also the leading cause of COPD (Chronic Obstructive Pulmonary Disease), which is a group of lung diseases that cause problems with breathing. Smoking is also a risk factor for other types of cancer, such as pancreatic cancer, bladder cancer, and oesophagal cancer.
It is also a risk factor for other serious diseases, including Type 2 diabetes. You are also at risk if you are exposed to secondhand smoke.
Hence, experts in the UK are urging smokers to switch to reduce the after-effects of smoking.
E-cigarette Market Trends
The rising number of people attempting to quit smoking is one of the major ecigs market trends in the UK, and it is expected to have a positive impact over the next few years.
Consumers trying to quit smoking prefer ecigs over patches, tablets and inhalers, which is the major factor driving the market and there is some data to indicate that people prefer them to traditional cigarettes, even when not trying to quit smoking.
Public Health England released a smoking cessation campaign in December 2017 that provided face-to-face assistance, stop smoking aids, an app, social media, and SMS support. In addition, the website emphasised vaping as a method to help people quit smoking.
This seems to have helped matters as during the last five years, the proportion of smokers in the UK has fallen, and it is predicted to drop further over the forecast period. However, the proportion of vape users has increased.
The ecigs market (modular ecigs, rechargeable vapes, and disposable ecigs) (online and offline) in the UK was not significantly impacted by COVID-19. The UK government has not implemented any new regulations regarding them since COVID-19. The UK government is currently exploring options to reduce the VAT on e-cigarettes from 20% to 5%.
However, the government is expected to introduce rules and regulations, especially on the marketing of these products. This will likely cause a decline in the growth of the market in the near future. The introduction of regulations may positively affect the market in the long term. In the UK, the sale to minors is prohibited. Moreover, they could only be purchased at licensed premises.
E-cigarette Market Challenges
The proliferation of nicotine patches, sprays, inhalers, and lozenges as substitute quit-smoking aids is creating problems for the market.
The demand for tobacco products and nicotine patches is increasing in the UK but it remains to be seen whether that’s because people are giving vapes a honeymoon period until finding ways off tobacco altogether, or whether they are happy to continue consumption.
The usage of nicotine gum is also on the rise in the UK. Attempts to quit smoking by trying out other nicotine products are also growing. This will negatively impact the market’s expansion, as alternate nicotine products are in higher demand as a consequence.
People are also waking up to the fact that when switching from traditional cigarettes or rolling tobacco to vapes, you’re ultimately just trading one addiction for another.
Clampdowns on marketing to youths may also come and if they do, a lot of new customers will not arrive. This can’t be a bad thing for public health but of course, bad for shareholders.
Who are the big players?
- British American Tobacco Plc
- Imperial Brands Plc
- Innokin Technology Ltd.
- J WELL France Sarl
- Japan Tobacco Inc.
- JUUL Labs Inc.
- Pax Labs Inc.
- Philip Morris International Inc.
- Shenzhen IVPS Technology Co. Ltd.
- Shenzhen Kanger Technology Co. Ltd.
What are e-cigarettes?
An electronic cigarette (e-cigarette, e-cig, electronic cigarette, vapour cigarette, smokeless cigarette, e-vape, vape pen) is a device that vapourises a nicotine-based liquid so you can inhale it rather than smoke it.
They are widely available in the form of disposable and rechargeable devices. Consumers can choose from a variety of e-liquids depending on their preferred flavour and level of nicotine.
They are convenient and easy to use, and they are an excellent alternative to traditional cigarettes for smokers who are trying to quit. The aerosol produced is what delivers nicotine to the lungs, keeping tar and harmful smoke out, while stimulating the same nerves that cigarette smoking used to.
Electronic cigarettes were introduced to the market about a decade ago and were initially marketed as a smoking cessation tool. Over the years, the technology has improved significantly and has become more widely accepted as a smoking alternative.
Unlike conventional cigarettes, which emit carcinogenic tar, e-cigs produce a vapour made of water, flavour, and nicotine. They are widely available over the counter and can be used in most places where smoking is prohibited. They are considered to be significantly less harmful than conventional cigarettes, but they are not risk-free. As with any product, they should be used with care.
Where to buy e-cigarettes online
The UK e-cig market is expected to reach a value of >£990 million by 2021. This represents a CAGR of 13% over the forecast period.
The decrease in the number of regular smokers in the UK is one of the key factors driving the market and it is expected to have a positive impact over the next few years. In addition, people are slowly becoming more aware of the harmful effects of smoking and others are switching to e-cigarettes as a more effective means of quitting smoking.
The market will also be positively affected by the launch of the National Health Service’s (NHS) stop smoking service, which will make e-cigarettes more accessible to those trying to quit smoking.
In order to successfully tap into the ecig/vape market, manufacturers will need to focus on developing new products and making them more viable alternatives to traditional smoking products.
The major challenges for the market are the same as for other tobacco products – fragmentation, regulatory restrictions, and a lack of manufacturing standards. The high prevalence of combustible cigarettes and the traditional tobacco industry will continue to act as barriers for the growth of the e-cig market in the UK.
SOURCE Technavio: Market Research Reports – Industry Analysis Size & Trends – Technavio