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U.S. E-cigarette & Vape Market Size, Share & Trends Analysis 2021-2028

E-cigarette sales

The U.S. vape market size is expected to reach USD 40.26 billion by 2028. It is projected to register a CAGR of 27.4% from 2021 to 2028. Various factors, such as the rapid growth of vape shops in the U.S. and the increasing popularity of e-cigarettes among the youth population, is expected to drive market growth over the forecast period.E-cigarettes and vape mods are being increasingly used by users as a substitute for smoking traditional cigarettes.

Market Overview

The United States e-cigarettes market is expected to register a CAGR of 11.6%, during the forecast period. With the high-level of the popularity of e-cigarettes among youth population and the rapid expansion of vape shops throughout every state in the country, the penetration of e-cigarettes in North America is incredibly high.

  1.  E-cigarettes, or electronic nicotine delivery system (ENDS) are being increasingly used by people as a substitute for smoking traditional cigarettes or for recreational purposes. Due to the growing health concern over the usage of conventional tobacco-based cigarettes, the e-cigarette market has witnessed significant growth over the past decade.

  2. E-cigarettes were introduced as an alternative to traditional cigarettes. According to the World Health Organization tobacco kills more than 8 million people each year. More than 7 million of those deaths are the result of direct tobacco use while around 1.2 million are the result of non-smokers being exposed to second-hand smoke, which is a major reason for the adoption of e-cigarettes.

  3.  The United States owns the largest e-cigarette distribution network for sale. However, the new taxation rules on e-cigarettes among the states of the country are going to be potential threats for market growth during the forecast period.

Scope of the Report

Electronic cigarettes, which are an alternative to tobacco cigarettes, have been gaining popularity. E-cigarettes are sophisticated mechanical devices, designed to deliver the same highly addictive nicotine that is in tobacco cigarettes, without the other harmful effects of tobacco smoke.

By Product

Completely Disposable Model

Rechargeable but Disposable Cartomizer

Personalized Vaporizer

By Battery Mode

Automatic E-cigarettes

Manual E-cigarettes

Key Market Trends: Personalized Vaporizers to Witness High Growth
  • Personalized vaporizers are the most recent innovation in the market manufactured by major players in the e-cigarette market. These advanced models provide the best user experience in vaping and cater to the needs of the most active and regular vapers.
  • These vaporizers allow a high degree of customization by which the consumer can keep track of the amount of vapor, battery strength and amount of nicotine consumed, among other wide range of features. The wide range of products and services offered by the manufacturers has led to personalized vaporizers occupying the majority market share.

The huge surge in the number of available flavors, which can be used to fill the cartridge, has further contributed to the rise in the number of consumers willing to use the personalized vaporizers. Also, the rising usage of flavoured E-cigarettes among high school students is driving the market forward.

E-cigarette Use Among High School Student in % United States, 2017-2018


Increasing Health Concern Among Population to Drive the Market


  • The increasing cases of tobacco-related cancer in the United States where most cases are related to cigarette smoking have resulted in the public looking for alternatives for either substituting or quitting cigarettes.
  • Health concerns related to smoking have drastically increased in the last few years as many governments and individual organizations are treating this issue with high priority. Moreover, smoking is linked to a higher risk of dementia and cognitive impairment in the elderly and has also been associated with increased risk of hearing changes, cataracts, decreased abilities, and macular degeneration.
  • E-cigarettes usage is also rising owing to the fact that these devices don`t use any tobacco. Most of the American population is considering e-cigarettes as a gateway to quitting smoking while some of the smoking population is shifting to an e-cigarette as an alternative to smoking. Moreover, as these products are being offered in nicotine and non-nicotine forms, many of the population is considering them to be a better alternative.

E-cigarette sales in USD Billion, United States, 2014-2018

Competitive Landscape


The United States E-cigarettes market is highly competitive owing to the presence of many large players. The market appears to be consolidated owing to the fact that some of the players hold most of the share in the market. Key strategies adopted by the large players are product innovation and mergers and acquisitions. Some of the major players in the market are Philip Morris International Inc, Imperial Brands plc, British American Tobacco plc among others.

April 2018 – Italy became British American Tobacco’s first market to offer consumers products from both its innovative vapour (Vype) and tobacco heating products (Glo) ranges, following the launch of Glo in Turin, Italy. Glo is BAT’s flagship tobacco heating product brand.

  •  Philip Morris International Inc
  •  Njoy Inc
  •  Imperial Brands plc
  •  British American Tobacco plc
  • Japan Tobacco International USA Inc.
Vapes Market Concentration