Over 300 Vapes and E-Cigarettes Brands Pouring into the USA Vaping Market!
The USA holds half of the global vapes and e-cigarettes market, making it a market worth paying attention to. Despite the rapid development of the European market in recent years, the USA still holds a considerable share. For instance, according to Statista's forecast, the revenue of the European vapes and e-cigarettes market is expected to reach $10.26 billion in 2023. In contrast, the US vapes and e-cigarettes market is projected to reach a whopping $9 billion by 2022. This indicates that the USA and European markets will remain at the core in 2023.
1. Incredible Monthly Sales Growth of Nearly 50% in Three Years
Compared to countries with only ten million units sold in a year, the USA reaches that standard in just one month.
According to data from the US CDC (Centers for Disease Control and Prevention), the sales of vapes and e-cigarettes in the USA increased from 15.5 million units in January 2020 to 22.7 million units in December 2022, experiencing nearly a 50% growth in three years. Disposable vapes have overtaken refillable pod systems, accounting for over half of the US market by the end of 2022.
In December 2022, disposable vapes dominated the market, with mint and other flavors accounting for a staggering 79.6% of sales, while tobacco and mint flavors made up only 4.3% and 3.6%, respectively. From January 2020 to December 2022, pod-based vape sales dropped from 75.2% to 48.0%, while disposable vape sales rose from 24.7% to 51.8%, surpassing pod-based systems. Among these, non-tobacco flavors experienced the fastest growth. Mint flavors dominated the pre-filled pod market, while fruit and candy flavors led the disposable vape market, including fruit, clove/spice, candy/sweets, and chocolate flavors.
As for the top brands, in the four weeks leading up to December 25th, 2022, the top five brands were VUSE, JUUL, ELFBAR, NJOY, and Breeze Smoke. Notably, Elf Bar became the best-selling disposable brand in the USA, sold under the name EBDESIGN. However, at the beginning of 2022, the data showed that 14.5% of people reported Puff Bar as their most frequently used brand, followed by Vuse (12.5%), Hyde (5.5%), and SMOK (4.0%). There has been a clear shift in brand preferences.
Information from some logistics companies suggests that there is a significant number of vapes and e-cigarettes exports to the USA recently, indicating that the demand in the USA is still substantial.
2. A Significant Rise in the Number of Vapes and E-cigarettes Brands Pouring into USA Vaping Makket
The number of vape and e-cigarette brands in the market reflects its competitiveness. Currently, the number of vape and e-cigarette brands in the USA is approaching 300.
According to CDC data, the total number of electronic cigarette brands in the USA continued to grow, increasing by 46.2% from January 2020 to December 2022, going from 184 to 269 brands. In just two years, the market attracted an additional half of the brands.
3. Monthly Sales Revenue in Millions of Dollars
Due to intensified vape e-cigarette regulations in the USA, monthly sales revenue for electronic vaporizers has decreased. However, the actual decline may not be as significant as it seems.
According to CDC data on sales revenue, from May 2022 to December 2022, the total sales revenue for electronic vaporizers in the USA decreased by 12.3%. However, when compared to early 2020, the sales revenue still remained several million dollars higher. CDC attributes this decline in revenue to various factors, including efforts by health authorities to regulate electronic cigarette sales and the surge in large disposable vape purchases. Moreover, this data only includes the sales performance of traditional brick-and-mortar retailers and might not accurately reflect the actual sales revenue, as online orders and specialty vaporizer shops might not be accounted for.
Thus, the USA's market goes beyond just physical retail stores.
4. High Market Penetration
The penetration of electronic vaporizers in Europe and the USA ranges between 10% and 30% of smokers, while it's only about 3% in China.
Particularly in the USA and Europe, the penetration rate of electronic vaporizers is remarkably high. In 2022, the global electronic vaporizer penetration rate is estimated to reach 7.3%, with the USA leading at 30%, followed by the UK at 27.6%. In the European market, France and Italy hold the highest rates at 17.5% and 11.5%, respectively.
According to 2020 statistics, the penetration rate of electronic vaporizers among US adults is approximately 19.6%, translating to around 4.9 million adult users. The current estimate for electronic vaporizer users in the USA is about 11.1 million people.
5. Remarkable Presence in Convenience Stores
According to data from market research company IRI in Chicago, the sales revenue from electronic vaporizers in US convenience stores reached $6.93 billion in 2022, growing by 9.3%. The total number of products sold amounted to 438 million units, with an average price per item of $15.82. Considering the nearly $10 billion market size in the USA, convenience stores accounted for nearly $7 billion, indicating that a large portion of the market relies on this distribution channel.
Based on this convenience store model, many US convenience store retailers are expanding their offerings to include electronic vaporizers. One such distributor, RACE TRAC, controls over 500 convenience stores. The popularity of this model in the USA is attributed to the fact that many consumers are choosing electronic vaporizers due to inflation.
As the largest exporter of vapes and e-cigarettes from China, the USA's market remains a subject of considerable interest. However, given the current strict regulatory environment, many companies are actively seeking to expand their market share in Europe. The European and American markets continue to be the driving force in the global market!