Asia-Pacific e-cigarettes market is projected to grow at a CAGR of 1.93% during the forecast period (2020- 2025).
- E-cigarettes, or electronic nicotine delivery system (ENDS) are being increasingly used by people as a substitute for smoking or for recreational purposes. Due to the growing health concern over the usage of conventional tobacco-based cigarettes, the e-cigarette market has witnessed significant growth over the past decade.
- Increasing the adoption of e-cigarettes has created a market for disposable, reusable, and customizable e-cigarettes.
- Easier access to the distribution channel, especially online websites and e-commerce sites, has provided market players with the scope to expand both locally and regionally, which continues to be one of the key drivers for the market.
- However, the stringent regulations in the major countries of the region, highly hampered the market.
Key Market Trends
Demand for Nicotine-free Products
In recent times, a significant number of consumers are turning to vape, instead of traditional cigarettes, in the region with an attempt to decrease the vulnerability to health hazards. Moreover, vaping attracts even non-smokers to try e-cigarettes, as there are flavors without any nicotine content. The nicotine content is generally very less in e-liquids, as compared to cigarettes. The emergence of nicotine-free e-liquids has created a new market for non-smokers in Asia-Pacific. Over the past few years, flavors have gained more importance in this segment, as they provide a much better and satisfying experience to the users who choose to vape, without nicotine content.
Online Retail Drives the Retail Sector
The continuous restriction in the market has led to a decline in the offline retail of e-cigarettes in the region, however, the online retail channels are still experiencing extensive growth in countries such as Indonesia, New Zealand, and others. In February 2020, JUUL halts the offline retail of e-cigarettes in Indonesia, however, online retail is still allowed in Indonesia and the Philippines with no age verification. Thereby, catering to the online retail of e-cigarettes in the region. Additionally, the rising number of online retailers is also witnessed in the Asia-Pacific market, which drives the market studied. Conversely, owing to the restriction imposed by the government of some of the countries in the region, on an advertisement of e-cigarettes on the web, further restrain the market.
The global players dominate the market studied owing to their wide product offerings and high-quality products. Moreover, these players are projected to dominate the market share in the forecast period also for the threat of new entrants in the market is considerably low. The improved technology is required by the new players entering the market in order to sustain in the competitive Asia-Pacific e-cigarettes market.
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