Recent years have witnessed a surge in the use of e-cigarettes, with millions of people choosing them as an alternative to conventional cigarettes and other tobacco products. The entire industry continued its steady growth in 2020, despite the effects of the COVID-19 crisis.
According to data presented by Finaria, the revenue of the global e-cigarettes industry is expected to grow by 10% year-over-year and hit $20.8bn in 2021.
E-Cigarettes Sales Revenues Soared 88% in Five Years
According to the World Health Organization, there has been a small but steady decrease in the estimated number of smokers globally, to around 1.1 billion. However, it’s a different matter when it comes to e-cigarettes.
Today, electronic nicotine delivery systems (ENDS) or e-cigarettes come with a high-tech design and easily rechargeable batteries, making them especially popular among the younger tobacco users.
In 2012, the global e-cigarettes industry generated $5.1bn in revenue, revealed Statista data. In the next three years, this figure soared by almost 85% to $9.4bn.
Statistics show that in 2018, sales revenues jumped over $15.8bn and continued rising. Between 2019 and 2020, the entire industry grew by 6.8%, with profits reaching $18.8bn, an 88% jump in five years.
The increasing trend is set to continue in the following years, with e-cigarettes sales reaching $24.1bn value by 2023.
The average revenue per user amounted to $2.39 in 2020. In the next three years, this figure is expected to rise to $3.15.
The United States Generates One-third of Global E-Cigarettes Revenues
Analyzed by geography, the United States represents the world’s largest e-cigarettes market, expected to generate $6.2bn in sales in 2020 or one-third of global revenues this year.
Developed as an alternative to combustible tobacco, e-cigarettes became popular among the growing number of US smokers who searched for a way to quit.
The 2020 American Society of Clinical Oncology survey showed that almost 50% of respondents agreed that e-cigarettes could help people quit smoking traditional cigarettes.
The Management Science Associates survey also revealed that Juul was the leading e-cigarette brand in the United States in 2020, with a 42% market share. Vuse, Blu, and Logic followed with 36%, 9%, and 8% market share, respectively. In the next three years, the revenue of the US market is expected to surge by 33% and hit $8.2bn.
The United Kingdom ranked as the second-largest e-cigarettes market globally with $3.1bn in revenue in 2020, a 10.6% increase in a year. Statistics show this figure is set to rise to $3.8bn by 2023.
The UK’s Office for National Statistics data from July showed that more than half of polled individuals stated they also used e-cigarettes to stop smoking. Another 15% of respondents believe they are less harmful than traditional cigarettes, while 9% buy them because they are cheaper than tobacco products.
With $1.08bn in revenue in 2020, Canada ranked as the third-largest e-cigarettes market globally. France and Germany follow with $1.03bn and $990 million, respectively.