U.S. E-cigarette And Vape Market Analysis Report By Component, By Distribution Channel, By Product And Segment Forecasts From 2019 To 2025

Report ID: MN17620098  |  Published: September 2020  |  No of Pages: 57
Format: Electronic (PDF)  |  Industry: Consumer Goods

Industry Insights

The U.S. e-cigarette and vape market size was accounted for USD 4.2 billion in 2018. Further, the market is anticipated to register 24.1% CAGR over the forecast duration, 2019 to 2025. Owing to the health risk associated with the consumption of conventional cigarettes, the demand for e-cigarette and vape is estimated to rise over the forecast duration.

Electronic cigarettes and vapes are available in a variety of flavors and delivery modes, thereby, gaining traction among millennials. Owing to the increasing demand, market players are estimated to speed up their research and development operation, which in turn, is projected to drive the market further.

U.S. e-cigarette & vape market

Batteries operate E-cigarette and vaping devices and it releases vaporized nicotine for inhaling. It gives a similar feeling as a smoking regular cigarette; however, direct smoke inhalation is not involved here. Owing to this factor, e-cigarette & vape provides a safer alternative to the conventional cigarette.

It is expected that growing investment in research and development would result in the introduction of low-cost products. Moreover, companies are focusing on introducing customized products to attract millennials consumers.

Owing to the availability of e-cigarette in various flavors, several consumers are preferring e-cigarette over conventional cigarettes. However, stringent regulations pertaining to the consumption of e-cigarette in the United States are likely to hamper the e-cigarette and vape market growth.  

Product Insights

In 2018, the rechargeable division was worth USD 1.9 billion and projected to be the largest segment during the forecast years. Owing to the cost-effectiveness, rechargeable cigarettes are gaining traction among consumers. Owing to the rechargeable internal batteries, this segment is ideal for prolonged use.

On the other hand, modular devices are anticipated to register the highest growth over the next six years. The users can refill such products themselves and it allows to adjust the power as well. The modular variants include cartomizer, battery and cartridge. This segment is increasingly being preferred as it can be customized by adjusting output, battery, and coils. Moreover, modular variants are known to generate a higher amount of vape. 

Components Insights

In 2018, the vape mod was worth USD 2.1 billion and it is likely to hold the highest share in the U.S. e-cigarette and vape market over the forecast duration. Vape mod powers atomizer by holding the battery. Owing to various features like variable wattage, temperature control and customized power delivery, this segment is gaining traction among consumers. 

On the other hand, e-liquid is likely to be the fastest-growing segment from 2019 to 2025. The growing popularity of this segment is attributed to its wide availability in various flavors. In addition, companies have increased their production amid a rise in demand. E-liquid is available with different nicotine strengths such as 3 mg, 6 mg, 12 mg, and 24mg. 

Distribution Channel Insights

Based on the distribution channel, the retail store is likely to emerge as the dominant segment by 2025. Retail stores, also known as vape shops, allow consumers to check different flavors available. Customer prefers these shops owing to instant availability. In the recent past, there has been a significant rise in the number of vape shops in the country.

U.S. e-cigarette and vape market share

On the other hand, the online segment is likely to register the maximum growth over the next six years. Owing to the stringent regulation regarding sales and distribution through retail stores, online stores are gaining popularity. Additionally, social media sites are used to promote e-cigarettes, which in turn, further attract online sales. Buyers looking for bulk orders find online platforms suitable. In addition, wide product availability on online platforms drives its growth. 

Impact of COVID-19

The United States is one of the worst affected countries by COVID-19. Owing to the pandemic, the country was forced to shut down various operations. This has resulted in low production of e-cigarette & vapor, thereby, adversely affecting the market growth. In addition, drastic changes in unemployment scenario in the country have led to low spending on e-cigarette and vape products by consumers. To address the low demand, manufacturers can focus on introducing cost-effective products. In addition, key players can emphasize mergers and acquisitions to strengthen their foothold in the market.

U.S. E-cigarette And Vape Market Share Insights

Key players operating in the market are Altria Group, Inc., Imperial Brands, British American Tobacco, and Philip Morris International among others. These players are aiming at merger & acquisition and strategic partnerships to strengthen their market presence.

Buoyed by the rising demand, market players are aggressively investing in the research and development to provide cost-effective products. For example, in 2015, Altria Group invested 186 million. Further, in 2016, the company increased its investment to 203 million followed by 241 million in 2017.

Report Scope



The base year for estimation


Actual estimates/Historical data

2014 - 2018

Forecast period

2019 - 2025

Market representation

Revenue in USD Million and CAGR from 2019 to 2025

Country scope

The U.S.

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific market information that is not currently within the scope of the report, we will provide it to you as a part of the customization

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the U.S. e-cigarette and vape market report based on product, component, and distribution channel:

• Product Outlook (Revenue, USD Million, 2014 - 2025)
    • Disposable
    • Rechargeable
    • Modular Devices

• Component Outlook (Revenue, USD Million, 2014 - 2025)
    • Atomizer
    • Vape Mod
    • Cartomizer
    • E-liquid

• Distribution Outlook (Revenue, USD Million, 2014 - 2025)
    • Online
    • Retail Store
        • Convenience Stores
        • Drug Stores
        • News Stands
        • Tobacconist
        • Specialty E-cigarette Stores

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