Europe is expected to hold a market revenue share of 38.03% in the year 2020, growing with a CAGR of YY% during the forecast period.
The health bodies in the region are providing acceptance to e-cigarette and vape from vendors such as British American Tobacco Plc Vype and Imperial Brands Plc Blu in the region as a better alternative to tobacco smoking is anticipated to drive the market growth in Europe.
Europe is one the largest markets for e-cigarettes in the world, led by countries, like the United Kingdom, Germany, France, and Italy. The penetration of these products is particularly high in the United Kingdom and France, due to a high demand from users in the age group of 30-44 years.
The E-cigarettes market in the United Kingdom is likely to reach USD 6,837.91 million in 2028, from its recorded value of USD 2,552.04 million in 2020, growing with a CAGR of 12.75% during the forecast period.
In the UK, current e-cigarette use increased from 1.7% of the adult population in 2012 to 7.1% in 2019 and then decreased to 6.3% in 2020. As of 2020, about 59% of UK adult e-cigarette users are former smokers, 38% currently use both cigarettes and e-cigarettes, and 3% have never smoked a cigarette. Vaping shops have become more common in the UK, with 69 new stores opening on High Streets in the first half of 2019 alone.
Tobacco companies, such as UK British American Tobacco PLC (BAT) and Imperial PLC, are investing billions of dollars into research, development, and marketing cigarette alternatives, owing to the decline in the popularity of traditional smoking methods.
In 2019, Imperial used their contracted advertising agency (MSQ Partners) and a ‘brand experience’ company (Hyperactive) to create “an immersive, hedonistic, vaping nirvana experience” at big summer music festivals in the UK. In July 2021, the chief executive of tobacco business Philip Morris International called on the UK government to ban cigarettes within a decade, in a move that would outlaw its own Marlboro brand.
E-cigarettes and vaping equipment are also widely available across Germany. They can be found in most places that sell tobacco products, as well as in specialist vape shops. Germany's e-cigarettes market is likely to reach USD 1,685.09 million in 2028, from its recorded value of USD 781.60 million in 2020, growing with a CAGR of 10.33% during the forecast period.
With one of the largest populations in the European countries, Germany's smoking population is second to the U.K. Leading e-cigarette brands from the U.S., China, and Europe have realized the potential of this budding industry and have penetrated the market to leverage the opportunity presented by a large consumer base. Vape shops numbers are increasing across the country and new products and flavors have been launched in the market to streamline and enrich the experience of e-cigarette smoking among the consumers.
In Germany, the Alliance for Tobacco-free Consumption (BftG) and the Association of the E-Cigarette Trade (VdeH) have been advocating that the federal government exempts vaping stores from the closure orders. They fear that vapers who will not be able to “meet their basic needs for spare parts and e-liquids” may relapse into tobacco consumption and recommend that “the prime ministers of the federal states follow this example and immediately adapt their decrees accordingly”.
However, tax hikes for e-cigarettes is expected to hamper the market growth in Germany to a certain extent. Currently, a 10-millilitre bottle of vape liquid costs around 5 euros in Germany. In 2022, an extra 1,60 euros will be added to this price in taxation, and this will rise to 3,20 euros by 2026. An additional tax is also to be introduced for heated tobacco, so that in future it will be treated similarly to cigarettes for tax purposes.
France's e-cigarettes market is expected to grow with a CAGR of YY % during the forecast period, reaching USD YY million in 2028, from its recorded value of USD 995.80 million in 2020.
France has one of the largest e-cigarette markets in Europe, with over 1.2 million “vapoteurs” partaking every day. Sales are growing at a rate of 5-10 percent every year and are already valued at €350 million. In February 2018, the Ministry of Public Accounts signed an agreement with the national tobacconists association (Confederation des Buralistes de France) to help tobacconists depend less on tobacco.
Also, e-cigarettes may be brought to market either as medicines or as consumer products. Those seeking medicines approval (either because they make cessation/health claims, or contain nicotine above the threshold of 20 mg/mL) must obtain marketing authorization under the standard drug licensing process.
Russia is an important global market for e-cigarettes. About twelve per cent (11.9%) of adults and more than a quarter (28.6%) of adolescents in Russia have tried e-cigarettes. Russia’s high prevalence of tobacco use and strong tobacco control law may push both smokers and vendors to seek alternative products in order to cope with recent restrictions on sales, use, and marketing of conventional tobacco products – providing an opportunity for the expansion of the e-cigarette market.
KT&G and PMI are stepping up their efforts to penetrate the global e-cigarette market as they expanded their presence to Ukraine in Eastern Europe about three weeks after the launch of Lil SOLID in Russia in August 2020. Like Russia, Ukraine has many consumers who have interest in e-cigarettes.
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