E-liquid Market Growth is attributed to Rising Social Media Influence about Vaping

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.

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.
• Furthermore, the increasing consumption of tobacco products among students and females is anticipated to drive the growth of the tobacco segment over the forecast period.
• 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.
• 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. 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.

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.

E-liquid Market PEST Analysis, Distribution Channel Outlook and Regional Trend, 2027

E-liquid Industry Overview

The global e-liquid market size was valued at USD 1.4 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 13.4% from 2021 to 2027. The rising adoption of safer alternatives to smoking across the globe is anticipated to drive the demand for e-cigarettes over the forecast period. Furthermore, the availability of e-liquids in various flavors such as tobacco, menthol, chocolate, and fruit & nuts is further anticipated to encourage the usage of e-liquids. Growing health awareness among people, coupled with the availability of e-liquids with a low level of toxicants, is further expected to drive the market over the forecast period.

E-liquids also offer a price advantage over tobacco products and are available in various price ranges, improving the affordability of these e-liquids. Moreover, vaping has the potential of helping smokers quit smoking, thus making e-liquid an effective alternative to smoking. The rising prices of traditional cigarettes have further encouraged the demand for e-liquids and e-cigarettes globally, thereby driving the market. Technologically advanced e-cigarettes are gaining popularity in the market, thus increasing the demand for various e-liquids to enhance the vaping experience.

Gather more insights about the market drivers, restraints and growth of the Global E-liquid market

There has been an increase in the number of vape shops across the globe, particularly in North America, where customers can personally test e-liquid flavors before purchase. The scenario is expected to further encourage the growth of the market over the forecast period. For instance, in June 2019, JUUL Labs, Inc., a provider of e-cigarette and e-liquid, opened a store in Toronto, Canada, which allows customers to test e-liquid flavors before purchase. Various studies have been carried out by medical institutes such as British Medical Association and Royal College of General Practitioners suggesting that smoking exposes the user to over 5000 chemical compounds whereas e-cigarettes expose the user to a negligible number of compounds, most of which are non-toxic. These factors are anticipated to propel the growth of the market over the forecast period.

E-cigarette manufacturers are introducing various device configurations and products at affordable prices to expand their consumer base. Modular e-cigarettes are gaining popularity owing to the customization options available, where the users can interchange parts such as coils, atomizers, and battery mods to get the desired flavor in order to enhance the vaping experience. The growing trend of Do-it-Yourself (DIY) in the market, where the user may develop their own e-liquid by combining various flavors, is further driving the growth of the market over the forecast period. The availability of e-liquids with different nicotine strengths, such as 3 mg, 6 mg, 12 mg, and 24 mg, allowing users to select their e-liquids as per their requirement, is also attracting a large consumer base in the market.

However, stringent regulations imposed by local authorities on the use of e-liquids are expected to hamper the market growth. For instance, in September 2019, the U.S. government announced to ban flavored e-cigarettes to combat a significant rise in the number of teen vaping. The government announced the ban on selling dessert, fruit, and mint-flavored products in the U.S. Amid the ban, companies in the U.S. suspended the sale of non-tobacco flavors in the country. For instance, in November 2019, JUUL Labs, Inc. suspended sales of non-menthol based and non-tobacco flavors in the U.S.

Browse through Grand View Research's Technology Industry Related Reports

E-cigarette And Vape Market - The global e-cigarette and vape market size was valued at USD 18.13 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 30.0% from 2022 to 2030.

Tobacco Market - The global tobacco market size was valued at USD 849.9 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 2.4% from 2022 to 2030.

E-liquid Industry Segmentation

Grand View Research has segmented the global e-liquid market based on flavor, type, distribution channel, and region:

E-liquid Flavor Outlook (Revenue, USD Million, 2016 - 2027)

• Menthol
• Tobacco
• Dessert
• Fruits & Nuts 
• Chocolate
• Others

E-liquid Type Outlook (Revenue, USD Million, 2016 - 2027)

• Pre-Filled
• Bottled

E-liquid Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)

• Online
• Retail Store

E-liquid Regional Outlook (Revenue, USD Million, 2016 - 2027)

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Market Share Insights

September 2018: Turning Points Brands, Inc. acquired International Vapor Group, LLC. This acquisition enabled Turning Point Brands Inc. to implement vapor B2C platforms into its electronic vape and component distribution channel.

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.

Key Companies profiled:

Some prominent players in the global E-liquid Industry 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.