Canada E-Cigarette Market Research Report, 2028

Canada's E-cigarette Market is anticipated to register growth on the back of the increasing preference of the Arabian population towards the product as it tends to abate tobacco craving, decreases the consumption of conventional cigarettes, and is less harmful than conventional cigarettes. Additionally, the health issue exposed by the consumption of e-cigarettes is less as compared to the consumption of conventional cigarettes and is leading to increased adoption of e-cigarettes in the Arabian countries. Moreover, the government of several Canadian countries has backed e-cigarettes as a public health fix to eradicate traditional smoking habits, creating awareness regarding the advantages of e-cigarettes over traditional smoking methods. Furthermore, the manufactures offering of customization capabilities such as temperature control and nicotine dosages is projected to boost product demand. Moreover, players’ continual improvement in new product development is expected to accelerate market expansion. According to the research report "Canada E-Cigarette Market Research Report, 2028," published by Actual Market Research, the market is expected to add USD 0.98 Billion by 2028. E-cigarettes hold a major share of the tobacco products segment. Moreover, manufacturers are introducing new-generation products that offer different strengths of nicotine and enable users to refill the cartridge. The E-cigarette market size is dominated by modular type e-cigarettes as it offers greater customization and has overtaken rechargeable models as the most preferred type of device. Modular e-cigarettes can be refilled by the user, but it also allows the user to regulate the power from the batteries to the atomizer. Apart from this, the easy availability of e-cigarettes across the well-distributed retail sector has further escalated the market growth in the Country. Tobacco and botanical flavors account for nearly half of the market in the Flavor Segment. The automatic e-cigarette is the most popular among others because automatic e-cigarettes are usually compact in size and require very little maintenance. They can easily slide into a pocket or purse and are extremely convenient to carry and use. In the distribution channel, the offline segment dominates the market. The growing urge of smokers to quit and the increasing preference of consumers for safer alternatives to tobacco smoking are major factors driving the growth of the e-cigarette market.

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According to recent results from the 2021 Canadian Tobacco and Nicotine Survey (CTNS), vaping continues to be more prevalent among younger adults than older age groups. Results indicate that in 2021, 13% of youth (aged 15 to 19) and 17% of young adults (aged 20 to 24) reported having vaped at least once during the 30-day period before the survey, compared with 4% of adults aged 25 or older. Flavor preferences varied by age group but not by gender. More vapers from the youngest age group (aged 15 to 19) preferred fruit flavors (65%) compared with adults aged 20 to 24 (57%) and those aged 25 and older (48%). By contrast, tobacco flavor was more popular among users aged 25 and older (14%) than it was among the younger age groups (1% among youth aged 15 to 19 and 2% among adults aged 20 to 24). E-cigarettes with or without nicotine are legal in Canada. In May 2018, Bill S-5: An Act to amend the Tobacco Act and Non-smokers’ Health Act received Royal Assent, which established a new legislative framework to regulate the manufacturing, sale, labeling, and promotion of vaping products in Canada. Sales of vaping products containing nicotine are permitted to adults 18 years of age and older. The Canadian government has legalized the usage of e-cigarettes with nicotine amongst adults and a regulatory framework was introduced for the marketing of the same in the country along with the prescribed standards for sale. This, in turn, would help conventional smokers to shift towards e-cigarettes from traditional ones which would propel the demand for e-cigarettes in the country. Vaping is the act of inhaling and exhaling the vapor produced by a device such as an electronic cigarette (e-cigarette), vape mod, vaporizer, or vape pen. While some people use these devices to reduce or to quit smoking, vaping can also have negative effects on health, particularly among youth or non-smokers. According to Health Canada, the majority of vaping products contain nicotine and, like tobacco, can lead to nicotine addiction. Vaping may also increase the risk of exposure to other harmful chemicals.

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Kripa Shah

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The Offline segment accounted for the highest market share. Earlier, e-cigarettes were sold in retail outlets such as vape shops and gas stations. These shops assisted customers to try out and test these devices before making a purchase decision is expected to drive the retail store segment growth over the forecast period. The online segment is anticipated to register a significant CAGR over the forecast period. The benefits of an online marketplace in terms of competitive pricing, convenience, and access to a wider variety of products encourage people to purchase e-cigarettes and vape online. The country has also been witnessing a rising demand for e-cigarette products, encouraging sellers to sell e-cigarettes online. Covid-19 Due to the COVID-19 pandemic, the e-cigarette market witnessed a sharp decline. The pandemic forced people to pay attention to their health and quit habits like smoking in order to tackle this situation. Thus, it impeded the demand for e-cigarettes throughout the pandemic period. Further, retail stores and outlets also stopped offering their products in order to abide by the government rules, which hampered the growth of the e-cigarette market. On the contrary, the ease of lockdown restrictions has increased the sales of e-cigarettes before. Considered in this report • Geography: Canada • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028

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Aspects covered in this report • Canada E-Cigarette market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Product • Modular E-Cigarette • Rechargeable E-Cigarette • Next-Generation E-Cigarette • Disposable E-Cigarette • Others By Flavour • Tobacco • Botanical • Fruit • Sweet • Beverage • Others By Battery Mode • Automatic E-cigarette • Manual E-cigarette By Distribution Channel • Online • Offline The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual reports of companies, and analyzing government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience: This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the e-cigarette industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.