E-liquids are fluids that are primarily used to fuel E-cigarettes which impart flavor to electronic cigarettes, and produce smoke that is similar to traditional cigarettes. There are many flavors available for E-liquids, including mint, menthol and fruit, they are gaining popularity due to the rising demand for healthier alternatives to smoking. Seeing as E-liquid is produced using the natural extraction method, it is a popular market strategy as many consumers are looking for natural and plant-derived products.
How do e-liquids work?
E-liquid can be described as a liquid used in electronic nicotine delivery system products to make smoke. This occurs as the fluid is heated to make an aerosol which the user inhales to replicate the experience of smoking tobacco. The substance is mostly made from ingredients like propylene glycol and water.
Market insights
Today’s market offers a wide range of e-liquids from different producers. These e-liquids can be found in various nicotine strengths and natural flavors, depending on the preferences of users. The Global E-Liquid Market Report provides an in-depth analysis of the market. This report provides a detailed analysis of the market’s key segments, drivers, restraints and competitive landscape.
Market drivers
Variety of flavors and health concerns
E-cigarettes will be in high demand due to the rising acceptance of safer alternatives to smoking around the world, they are expected to be more popular due to the availability of a variety of flavors, including tobacco and menthol as well as chocolate and fruit and nut.
Furthermore, the market will be driven by increasing health awareness and the availability of e-liquids that are low in toxicants. E-liquids can also be used to help smokers quit smoking, a growing concern for many people who’d like to be healthier.
Medical institutes like the British Medical Association or Royal College of General Practitioners have conducted numerous studies that show smoking exposes users to more than 5000 chemicals, while e-cigarettes only expose them to a small number of compounds – most of which are non-toxic. These factors will drive the market’s growth over the forecast period.
Price
E-liquids are also cheaper than tobacco products, and they can be found in a variety of price points which makes them more affordable and accessible. As such, E-liquids and electronic cigarettes are gaining popularity due to rising prices. E-cigarettes with advanced technology are becoming more popular in the market which has led to an increase in demand for e-liquids that enhance the vaping experience.
Abundance of vape stores
Vape shops have been increasing in number, especially in North America. These vape shops allow customers to test out e-liquid flavors in person before purchasing. This will encourage further growth over the forecast period. JUUL Labs, Inc., an e-liquid and e- cigarette provider, opened a Toronto store in June 2019. This allows customers to try different flavors before purchasing.
Over the forecast period, thee-online platform will experience a significant CAGR. The growth of online distribution channels is expected to be driven by the increased use of social media platforms such as Instagram, Facebook and WhatsApp for promoting and selling vape devices.
Market inhibitors
Various governments have imposed rules and regulations on e-liquids which can hinder market growth.
The market growth will be impeded by strict regulations that local authorities have imposed on the use of e-liquids. To combat the rise in teen vaping, the U.S. government banned flavored e-cigarettes in September 2019. Companies in the U.S. also stopped selling non-tobacco flavor products. JUUL Labs, Inc., for instance, stopped selling non-menthol-based and non-tobacco flavor products in the U.S. in November 2019.
Market specifications
North America was the dominant e-liquid market, accounting for over 40% of the total revenue in 2020. The presence of key vendors like JUUL Labs, Inc., Philip Morris International Inc., Turning Point Brands, Inc., and Nicquid in this region can explain it. These vendors are also focusing on increasing their revenue in the region through mergers or acquisitions.
This trend will further drive North American market growth. In September 2018, International Vapor Group, LLC was acquired by Turning Points Brands, Inc. Turning Point Brands Inc. was able to integrate vapor B2C platforms in its electronic vapes and component distribution channels with this acquisition.
Suggested Reading: Global E-liquids Market to Garner Bursting Revenues [USD 3.7 Billion by 2028] with Top Growing Companies During 2022-2031
Key Developments
- British American Tobacco Company introduced new vaping products in December 2018 with the addition of Puretech blade technology. Vype iSwitch was unveiled, as well as Vype iSwicth Maxx.
- Flavors & More launched three premium e-liquids in August 2016 – Cypher and Hawkeye.
