E-liquid and E-juice Market – Insights
E-liquid and e-juice are products, which are used to fill e-cigarettes and personal vaporizers. These products include ingredients such as vegetable glycerin, water, natural or artificial flavoring, nicotine, and propylene glycol. E-cigarettes are available in various types and are available in customized options in the market. For instance, people are attracted towards new designs and kits over conventional pen type e-cigarettes.
In 2014, Vapor Couture launched slim e-cigarettes specially designed for women. Moreover, Vaporfi’s Express e-cigarettes are available in five flavors in pre-filled cartridge line and it also offers refillable cartridge, which can be filled with any brand of e-liquid including Vaporfi’s over 30,000 e-liquid flavor combinations.
Furthermore, there are unique designs available for e-cigarettes wherein the color of the batteries can be customized; an e-cigarette smartphone case that can hold both the devices is also available; a metal carry case, a portable charging e-cigarette case, and a sterling silver necklace e-cigarette are some more designs available.
E-liquid and e-juice is gaining traction, due to its tobacco-free formulation and is also popular due to various flavors available in the market. E-liquid flavors such as cotton candy, bubble gum, candy cane, coffee, and chocolate are popular among the youth. Moreover, other categories of flavors, which are popular among adults include fruit, desserts, menthol, beverages, sweet, seasonings, and nuts.
Therefore, latest innovations in case of designs of e-cigarette and e-juice flavors are expected to attract new users and further boost the global e-liquid and e-juice market growth during the forecast period.
E-cigarette is not as toxic as conventional cigarette and cigars, however, excessive use of the same can be harmful to the human body. In May 2016, the U.S. Food and Drug Administration (FDA) finalized the 'deeming' regulation, which includes requirements for premarket review of e-cigarettes as new tobacco products. Under this, the U.S. FDA can also establish product standards and regulate manufacturing, importing, packaging, labeling, advertising, promotion, sale, and distribution of e-cigarettes, including components and parts of e-cigarettes. Furthermore, there are few federal restrictions on marketing e-cigarettes. For instance, marketing materials for e-cigarettes cannot make claims that the product exposes users to fewer toxins or reduces harm unless the U.S. FDA grants an order allowing such claims. Therefore, the above mentioned regulations against e-cigarette is expected to negatively affect the global e-liquid and e-juice market growth during the forecast period.
The global e-liquid and e-juice market was valued at US$ 6.02 Bn in 2018, and is expected to register a CAGR of 19.2%, in terms of revenue over the forecast period (2019-2027), to reach US$ 27.89 Bn by 2027.
Figure 1. Global E-liquid and E-juice Market Share (%), By Region, 2018
Source: Coherent Market Insights, 2018-19
Among regions, North America held the largest revenue share in the global e-liquid and e-juice market in 2018. Furthermore, Asia Pacific is expected to record fastest growth over the forecast period. Japan and China are major countries, driving major market growth in Asia Pacific. Rising number of lung cancer cases, owing to tobacco smoking is increasing demand for e-cigarette devices, which is in turn driving growth of the market in Asia Pacific.
According to National Institute of Cancer Prevention and Research (NICPR), in 2018, around 67,795 new lung cancer cases were reported in India, of which 48,698 were men and 19,097 were women. Increasing incidence of lung cancer cases due to tobacco smoking is inadvertently fueling demand for e-cigarette devices and thus, fueling growth of global e-liquid and e-juice market.
Figure 2. Global E-liquid and E-juice Market Share (%), By Distribution Channel, 2018
Source: Coherent Market Insights, 2018-19
Based on distribution channel, the market is segregated in online and offline channels. In 2018, offline channel segment accounted for the largest revenue share in the global market. Offline channels segment includes hypermarket, supermarket, specialty stores, and convenience stores. Hypermarkets combine supermarkets and discount and departmental stores, which results in bulk availability of different products under one roof. Thus, customers prefer hypermarkets for bulk purchasing of daily goods. This is expected to drive growth of offline channel segment in the global e-liquid and e-juice market over the forecast period.
Growing supermarket chain is fueling growth of the segment in the global e-liquid and e-juice market. For instance, according to the United States Department of Agriculture (USDA), in 2017, the total number of supermarkets in Egypt were 1,056 in 2016 and it increased to 1,215 in 2017. Supermarkets have established trust among consumers by providing convenient services and attractive offers. Moreover, majority of the customers prefer a particular brand over other, which are usually offered by supermarkets.
Some of the major players operating in e-liquid and e-juice market are Black Note Vape Inc., Fontem Ventures B.V, Crystal Canyon Vapes LLC, e-Liquid Factory, E-liquid Brands LLC, Mig Vapor LLC, Vape Dudes, KAIs Virgin Vapor, ZampleBox LLC, and VaporFi Inc.