E-Liquid Market: Asia Pacific Region Is Anticipated To Register Significant Growth Over The Forecast Period
E-liquid Industry Overview
The global e-liquid market size is expected to reach USD 3.3 billion by 2027, according to a new study by Grand View Research, Inc. The market is expected to expand at a CAGR of 13.4% from 2021 to 2027. The advent of e-cigarette products such as squonk mods and pod systems has increased its popularity and adoption in recent years. The rising demand for these products globally is expected to drive the market over the forecast period. In addition, the general presumption that these products can reduce the risk of lung disorders is fueling the market. Moreover, the absence of the tobacco burning process that is often found in conventional smoking products is expected to drive the market in the near future.
The growing adoption of e-cigarettes among youngsters is escalating the market value of e-liquid. Owing to the absence of tobacco and the availability of various flavors, such as chocolate, menthol, blueberry, and a range of fruit flavors, the appeal, and acceptability of these products is expected to increase among non-smokers as well. The growing demand for e-cigarettes and vapes in the market can also be attributed to their minimal environmental footprint compared to traditional cigarette buds. As e-liquids are used in e-cigarettes and vaporizers, the producers are capitalizing on the trend of eco-friendly vaping, which is capturing consumer attention.
Market players are focusing on mergers and acquisitions, collaborations, and partnerships in order to expand their distribution networks and build an international presence for their brands. For instance, in January 2018, Nicopure, a manufacturer of e-cigarette and e-liquid, announced a partnership with Vapоr Ltd., a distributor of e-cigarette and e-liquid in Bulgaria. Nicopure appointed Vapоr Ltd. as one of its distributors in Bulgaria. The partnership allowed the former to expand its brand presence in Bulgaria.
Key players are increasingly investing in the marketing and distribution of their products owing to rising competition in the market. For instance, in July 2019, Turning Point Brands, Inc., a manufacturer, and distributor of consumer products, invested USD 3.0 million in the Canadian distribution firm ReCreation Marketing. Through the ReCreation Marketing platform, the company launched RipTide, an e-liquid vape technology, and a variety of Nu-X products in Canada.
E-liquid Market Segmentation
Grand View Research has segmented the global e-liquid market based on flavor, type, distribution channel, and region:
Based on the Flavor Insights, the market is segmented into Menthol, Tobacco, Dessert, Fruits & Nuts Chocolate, and Others.
- The tobacco segment dominated the market and accounted for the largest revenue share of over 30.0% in 2020. This can be attributed to the rising demand for tobacco-flavored e-liquid among smokers as it provides the experience of smoking real tobacco.
- The rising demand has encouraged vendors to increasingly focus on developing and offering new flavors of e-liquids in the market.
Based on the Type Insights, the market is segmented into Pre-Filled, and Bottled.
- The bottled segment dominated the market and accounted for the largest revenue share of over 50.0% in 2020. On the basis of type, the market is segmented into pre-filled and bottled. Bottled e-liquids allow users to refill their vape tanks quickly and easily.
- The pre-filled segment is anticipated to register considerable growth over the forecast period. This can be attributed to the fact that cartridges prefilled with e-liquid are easy to dispose of. Furthermore, the cost-effectiveness of the pre-filled e-liquids and the rising demand for new flavors among youngsters is anticipated to drive the growth of the segment over the forecast period.
Based on the Distribution Channel Insights, the market is segmented into Online, and Retail Store.
- The retail store segment dominated the market and accounted for the largest revenue share of over 65.0% in 2020. This can be attributed to the fact that some retail stores allow customers to test various e-liquid flavors and e-cigarette products before making the purchase.
- The online segment is expected to register significant growth over the forecast period. Rising developments in the online distribution platforms to restrict the purchase of nicotine products by underaged users are expected to drive the growth of the online segment over the forecast period.
E-liquid Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
Key market players are engaging in new product development, partnerships, and acquisitions to strengthen their positions in the market and expand their operations across the globe. For instance, in April 2018, Turning Point Brands, Inc. acquired Vapor Supply’s assets, which include VaporSupply.com and part of its affiliates. The acquisition helped the former to sell e-liquids in the U.S. market and also helped it in expanding its presence in the vaping segment.
Manufacturers are dependent on a number of small and medium-sized third-party suppliers or manufacturers. However, failure to renew agreements or the failure of the distribution channels of third-party suppliers significantly affect the operations of manufacturers is anticipated to hamper the market growth. Key players are heavily investing in the development of e-liquids based on government guidelines issued by local authorities. For instance, in 2019, Turning Point Brands, Inc. invested USD 2.5 million in R&D activities to develop high-quality products. Some of the prominent players in the e-liquid market include:
- Black Note, Inc.
- Breazy
- BSMW Ltd.
- Crystal Canyon Vapes LLC
- eLiquid Factory
- Mig Vapor LLC
- Molecule Labs, Inc.
- Nicopure Labs LLC
- Philip Morris International Inc.
- Turning Point Brands, Inc.
- VMR Products LLC
Order a free sample PDF of the E-liquid Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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Grand View Research, Inc.
Phone: 1-415-349-0058
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