Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Contact: sales@bisresearch.com 2
Table of Content
3. Market Dynamics 13
6. Europe Vape Shops E-cigarette And Vaporizer Device & Aftermarket Analysis And Forecast 53
Contact: sales@bisresearch.com 3
List of Table and Figures
EU-TPD Regulations
MHRA Committee
NNA Guidelines
Responsibilities of TVECA
Advantages of FCTC
Contact: sales@bisresearch.com 4
List of Table and Figures
Europe E-cigarette Device Market Revenue Through Vape Shops by Product Type
Contact: sales@bisresearch.com 5
List of Table and Figures
Top Europe Countries by No. of Vape Shops and Respective Smoking Population
Contact: sales@bisresearch.com 6
EXECUTIVE SUMMARY
7
1. Executive Summary
When the e-cigarette market gained momentum, Europe lagged behind the U.S. in terms of product adoption, however, the region
has now emerged as the global leader in terms of revenue generation. E-cigarettes are increasingly being used as smoking cessation
products, while the sale of nicotine replacement products has been falling in the region by over 6% year by year since 2014, e-
cigarette sales have been growing at double digit rates. The market now has the presence of both leading Big Tobacco players and
several small local players leading the revenue generation. As a consequence, multiple business opportunities have surfaced with
the vaping industry, vape shops being one of them.
Since the market is still in the initial stages of its growth, there is a significant share of population which is still unaware or skeptical
about the pros and cons of using e-cigarettes and has never used them. Moreover, a large proportion of those who tried were not
thorough with the different product types and their features and functioning. Vape shops play a vital role in educating users and
building trust among them. Vape shops are the dedicated brick-and-mortar retail outlets which offer e-cigarette device and
components. They usually provide demos and the facilities of testing and trying different devices, e-liquids, flavors and components.
They also provide users with free samples for trial purposes. Thus, they help new users find e-cigarettes that suit their requirements
and needs.
There has been a significant surge in the number of vape shops since 2014 in European countries. There are over 12,000
dedicated vape shops in Europe currently which does not include tobacco shops or other retail outlets (brick-and-mortar). Most of
these are concentrated in the small number of countries, namely UK, France, Germany, Poland, Italy and Russia which have large e-
cigarette markets in terms of value. The recent development of the U.K. exiting the European Union is anticipated to impact the vape
shop business in the country as significantly as it was speculated at the time of EU TPD implementation. Currently, there are no
significant changes, however the situation will be more critically analyzed in 2017.
Contact: sales@bisresearch.com 8
1. Executive Summary
The following figure represents the total revenue generation from vape shops in Europe through the sales of e-cigarette
device and aftermarket.
Figure: Europe E-cigarette and Vaporizer Vape Shops Revenue Generation
Vape Shops Revenue ($ Million)
UK, Germany, Poland and France generate the maximum revenue. Russia as a market, has been identified as an opportunity
for vape shop owners, owing to the high smoking population and low vape shop count. The implementation of the EU-TPD
was followed by shutting down of hundreds of vape shops in various countries, Spain being one such example. The thriving
e-cigarette industry may further be adversely affected due to imposition of taxations across a number of countries. In terms
of products, bottled e-liquids, personal vaporizers, batteries and atomizers are the most widely sold products through vape
shops while rechargeable e-cigarettes and disposables are commonly available in convenience stores and supermarkets.
Contact: sales@bisresearch.com 9
Scope of the Report
and
research methodology
10
2. Scope of the Report and Research
Methodology
Research Methodology
The revenue generation from the sales of e-cigarette device and components through vape shops has been estimated using
an exhaustive bottom-up approach.
Please Note: The market size of vape shops in this report for e-cigarette device and component will differ from the
previously published reports on e-cigarette (Europe E-cigarette comprehensive and E-liquid Report). The bottom-up
approach has yielded a much accurate market estimate and will be updated in the upcoming reports.
Contact: sales@bisresearch.com 11
2. Scope of the Report and Research
Methodology
Total
An average number of vape shops was taken
market size
Calculation of for each of the country under scope
revenue generation
through Other Key countries considered include UK,
countries through
percentage share Germany, France, Poland, Italy and Russia.
Other countries considered include Spain,
Contact: sales@bisresearch.com 12
13
www.bisresearch.com 13
3. Market Dynamics
The e-cigarette market in Europe exhibited a remarkable growth from 2012-2015 and has presence of some of the Big
Tobacco as the regional market leaders such as Nicolites (Philip Morris), E-lites (Japan Tobacco International) and Vype (British
American Tobacco). The recent implementation of the European Union Tobacco Products Directive (EU-TPD), pertaining to the
sale, distribution and marketing of e-cigarettes in the EU countries has brought about significant agitation in the market.
However, on the brighter side, an increasing number of research studies are favoring the efficacy of e-cigarettes in smoking
cessation. This segment will discuss the key push and pull forces in the e-cigarette market which directly impact the vape
shops business.
The following figure lists the drivers and challenges for the e-cigarette and vaporizer market in Europe and are discussed in
the subsequent segments. Figure: Market Dynamics for Europe E-cigarette Market ( Vape Shops)
DRIVERS
Ease of access and diverse Stringent regulations,
variety challenging sustenance of
Perceived cost-effectiveness vape shops
MARKET
of e-cigarettes over Perceived health risks
conventional cigarettes DYNAMICS
Increasing number of reported
Low entry barriers adverse events
Hegemony of established
tobacco players
RESTRAINTS
BIS Research Analysis
Contact: sales@bisresearch.com 14
3.1 Market Drivers
The e-cigarette market in Europe has one of the most established distribution channels which has been a key driver in the
rapid expansion in sales of e-cigarette and accessories. Online portals, convenience stores, gas stations, retail stores and
pharmacies are the prevalent sales channel in the region. With the increasing traction of e-cigarettes and evolution of
second and third generation devices in the industry, a number of dedicated e-cigarette or vaporizer (e-vapor) stores, better
known as vape shops as well as lounges dedicated to vaping, known as vape lounges have come up. Most states
consider e-cigarettes a consumer product, thus allowing their over-the-counter sales. Europe now has more than 12,000
vape and tobacco shops.
One of the major advantages of vape shops is that the presence of dedicated shops for the sales of e-cigarettes where
users are allowed to test and try e-cigarettes before purchasing them, increases the trust among the first time users. The
revenue generation from such shops is anticipated to only increase through the forecast period with more players adopting
the distribution channels of brick-and-mortar vape shops in the region. For most of the countries in the region, regulations
are yet to be established and e-cigarettes are still regarded as consumer products and allowed to be sold in vape stores.
The benefits of vape shops such as- the live demos, free samples, the knowledgeable staff, full on site support, and on the
spot product availability, have contributed to their continuous increasing numbers and are attracting the new users more.
Moreover, such shops stock a wide variety of products and accessories which the buyer can physically test and sample
before actually buying it.
Contact: sales@bisresearch.com 15
3.2 Market Challenges
Apart from the health effects to the vapors, health concerns exist about the safety of the e-cigarette to non-smokers.
Several studies over the years have found that nicotine causes the formation of carcinogens when it reacts with nitrous
acid - a common component of indoor air. Most e-cigarettes contain nicotine, which is exhaled by the user in a vapor cloud.
Nicotine is a sticky substance that remains on surfaces for days and weeks, so the hazardous carcinogens continue to be
created over time, which are then inhaled, absorbed or ingested. A study published in 2012 in the journal Indoor Air looked
at the contents of e-cigarette vapor and found that exhaling the vapor releases measurable amounts of carcinogens and
toxins into the air, including nicotine, formaldehyde, and acetaldehyde. The authors concluded that e-cigarettes are a new
source of chemical and aerosol exposure and their potential health impact is a concern that should be investigated further.
There is a general underlying assumption that e-cigarettes are nicotine replacement therapy (NRT) products. However, the
World Health Organization (WHO), in July 2013, issued a statement that the safety of e-cigarettes has not been
scientifically demonstrated.
Contact: sales@bisresearch.com 16
17
www.bisresearch.com 17
4. Europe E-cigarette Consortiums, Regulatory
Bodies, Compliances, and Certifications
Consortiums
The growth prospectus for the e-cigarette industry has been exponential; however, there is still a significant share of
population unaware about perceived benefits and disadvantages of using e-cigarette. Consortiums and associations help the
users and vendors to get familiar with the ongoing changes in the rapidly growing industry. The prominent consortiums
discussed in this segment are Electronic Cigarette Industry Trade Association (ECITA), Tobacco Vapour Electronic Cigarettes
Association (TVECA) and British Medical Association (BMA) among others.
Regulatory Bodies
The increasing popularity of e-cigarettes among minors is one of the main concerns of the regulatory bodies with regard to
the manufacturing and distribution of e-cigarettes in the market. Certain restrictions have already been implemented by the
European Union- Tobacco Products Directive (EU-TPD), with regard to the updating of the laws, rules and regulations
governing the e-cigarette industry. One of the most prominent regulatory bodies, The Framework Convention on Tobacco
Control (FCTC-WHO) governs the legal and the regulatory framework for the for the European e-cigarette industry. The e-
cigarette industry is widely known as a healthy alternative to conventional smoking; however, most of the e-cigarette
companies are unregulated which is one of the main concerns for e-cigarette for not witnessing a wide scale global
adoption.
Compliances and Certifications
The e-cigarette industry is being widely touted as a healthy substitute to conventional cigarettes; however, the manufacturing
of e-cigarettes continues to remain largely unregulated. This is one of the main reasons that e-cigarettes have not witnessed
a wide scale adoption at the global level. Certified products are preferred more in an industry which is in its infancy and
therefore, this segment discusses the key compliances and certifications prevailing in the e-cigarette industry.
Contact: sales@bisresearch.com 18
Consumers Attitude
and
Buyers preference
19
5. Consumers Attitude and Buyers Preference
The paradigm shift of the conventional cigarette industry towards e-cigarettes has brought forward a growing market for
both device and component manufacturers and suppliers. In the current scenario, where e-cigarettes are deemed as
consumer products and not a proven substitute to smoking, there are certain parameters which can be gauged to analyze
the buyers behavior. These factors will provide a clearer picture regarding how vape shop owners can focus on increasing
revenue generation, which can either be achieved by selling branded products, or stocking a wider variety or emphasizing
on certifications.
The following figure lists the basic buying criterions, which are discussed in detail in the subsequent sections:
Figure: E-cigarette and Vaporizer Buying Criteria: Vape Shops
E-Liquid Flavor,
03 and Nicotine
Level
05
Packaging and
Labelling 04 Approval and
Standards
Contact: sales@bisresearch.com 20
5. Consumers Attitude and Buyers Preference
Multiple surveys across the globe have identified a log term cost saving in using e-cigarettes in comparison to conventional
cigarettes. Though e-cigarettes have an upfront high cost they are more economical than conventional cigarettes in the
longer run. This finding has been further validated with the per capita consumption of combustible cigarettes across each
state of Europe and equated with the puffs through an e-cigarettes. Cost in this reference has been identified as a driving
factor for buyers to opt for e-cigarette and vaporizers.
There is a significant difference among the e-cigarette types available in the market. While disposable e-cigarettes are
available for as low as $XX, personal vaporizers go as high as $XX. The price varies with the brand and e-cigarette types.
First time vapers, who are experimenting with vaping, be it for smoking cessation or casually, generally opt fro disposable
and rechargeable e-cigarettes, wherein they do not have to invest a large sum of money. The reason being an uncertainty in
the performance and efficacy of the vaping devices. Conventional cigarette smokers who are looking to quit smoking,
largely opt for personal vaporizers where price is not a significant barrier, since efficacy guarantee increases in such
devices.
E-liquid in bottled and pre-filled form (cartridges) cost less, when purchased in bulk and is generally preferred by regular
vapers. Vape shops stock a large variety of products, both for device and components. Also, such shops offer lucrative
discounts for customers, which are otherwise non-existent in other distribution channels.
Contact: sales@bisresearch.com 21
Europe Vape shops e-cigarette and
vaporizer device & aftermarket
Analysis and forecast
22
www.bisresearch.com 22
6.1 Overall Market Statistics
Figure: Europe E-cigarette and Vaporizer Market Revenue Through Vape Shops
Europe E-cigarette Market Revenue Through Vape
Shops ( $ Million)
Europe the largest markets in the e-cigarette industry globally in terms of revenue generated, which was estimated to be over $XX
billion in 2015. Over $XX billion of this revenue came through dedicated vape shops, which are slowly becoming the most popular
retail outlet for e-cigarette sales. The rise in the demand for e-cigarette and vaporizers in Europe has also created an indirect
demand for components used in e-cigarettes such as e-liquids, atomizers and batteries, due to the interdependency of these
products. The sale of these components has been clubbed as the aftermarket. $XX million of the aftermarket revenue was
generated through vape shops and is expected to rise to over $XX billion by 2025, over XX% of this revenue came through the sale
of e-liquids.
Contact: sales@bisresearch.com 23
6.2 Europe E-cigarette Market by Type
Disposable E-cigarettes
Disposable e-cigarettes are the most basic form of e-cigarettes that come prefilled with different flavours of e-liquid such as
menthol, tobacco, and fruity among others and can be used straight out of the pack. The functioning system available in a
disposable ecigarette lasts till the e-juice is available inside the tank. Once the battery runs out or juice is finished there is no
provision for recharging the battery or refilling the juice, consequentially, the user has to purchase a new device. Disposable e-
cigarettes are easily available at convenience stores, gas stations and supermarkets. Disposable e-cigarettes serve as the
starting point for most first time e-cig users due to their ease of use and low cost.
Advantages
Disadvantages
Small size, ease
of use and Limited flavors and nicotine
portability strength
Low upfront costs Low battery life, lack of
No recharging or customization options
filling of e-juice High costs in the long run
Weak performance compared
to other e-cig types
BIS Research Analysis
Contact: sales@bisresearch.com 24
6.2 Europe E-cigarette Market by Type
The total e-cigarette device revenue generated through vape shops was $XX million in 2015 and is expected to rise over $XX billion by 2022. In
2015, disposable e-cigarettes contributed a meagre $XX million, due to their falling demand and easy availability in other retail stores such as
convenience stores and gas stations. VTMs offer advanced technology, longer battery life and enhanced performance and are the preferred e-
cigarette type in the continent. Among retail channels, sold predominantly through vape shops and brought in the maximum revenue of $XX and
will continue to be the most popular device throughout the forecast period.
Contact: sales@bisresearch.com 25
6.3 Europe E-cigarette Aftermarket
AFTER MARKET
Contact: sales@bisresearch.com 26
6.3 Europe E-cigarette Aftermarket
Introduction
The soaring popularity of electronic cigarettes in the European as a viable replacement to conventional cigarettes has led to
an increased demand of different components used in an e-cigarette such as e-liquids, refillable cartridge, atomizer,
cartomizer, and battery. These components usually has a short life span and need to be regularly replaced. E-liquid, both
prefilled and bottled is replaced most often, once every 2-3 days for every 3ml for an average vaper, and thus creates the
maximum revenue. Atomizers are replaced on month to month base however their cost is minimal for most brands, while
batteries are expensive but lost for half a year to one year for most devices.
Figure: Europe E-cigarette Aftermarket Revenue Generation Through Vape Shops
Europe E-cigarette Aftermarket Revenue
Through Vape Shops ($Million)
Contact: sales@bisresearch.com 27
6.3 Europe E-cigarette Aftermarket
To calculate the market value for different components, the components have been segregated into E-liquids, atomizers,
cartridges, batteries, atomizers and others, which consist of clearomizers and cartomizers. Of all the e-cigarette components,
e-liquids witness the maximum revenue generation through vape shops, amounting to $XX million in 2015, and being an
essential part of the e-cigarette will continue to do so throughout the forecast period. As demand moves towards VTMs and
consumers gain more experience with e-cigarettes, demand for e-liquid, especially bottled e-liquid used in VTMs is expected to
see a surge. Vape shops will also bring in more revenue from sales of atomizers and batteries due to the increasing use of
vaporizers throughout the forecast period. By 2022, over $xx million of the revenue generation of Europe e-cigarette
aftermarket is expected to come through vape shops.
E-liquid
E-liquid is termed as the liquid content that is used in combination with a correct compatible e-cigarette device. It is also
known as e-juice and smoke juice. E-liquids have three main ingredients: nicotine, flavoring, and a VG (vegetable
glycerin)/PG (propylene glycol) mixture. Propylene Glycol (PG) is a humectant used for vapor production in an e-cigarette.
Nicotine is the addictive component in the e-liquid available in varying concentrations, such as 0-24 mg/ml in pre-filled e-
liquids/cartridges, while upto 100 mg in bottled e-liquids. The strength of an e-liquid refers to the amount of nicotine fluid
contained in a set volume of e-liquid, measured in milligram of nicotine per millilitre of total fluid volume (mg/ml). This unit
of measurement has been defined to compare e-liquids directly with conventional cigarettes.
Contact: sales@bisresearch.com 28
6.3 Europe E-cigarette Aftermarket
Prefilled
Bottled
Shops ($ Million)
E-Liquids are estimated to contribute maximum revenue to the aftermarket. The revenue generated was $XX million in
2015, and will reach over $XX billion by 2022. Bottled e-liquid will dominate the e-liquid market due to increasing demand
for advanced vapor products such as personal vaporizers and mods that use this type of e-liquid, in the region. The total
revenue generated through sale of bottled e-liquid in vape shops is expected to cross $XX billion by 2022, while prefilled e-
liquid will contribute $XX million due to demand for rechargeable e-cigarettes amongst occasional users.
Contact: sales@bisresearch.com 29
6.3 Europe E-cigarette Vape Shops Market, by Country
U.K.
Figure: UK E-cigarette Market Revenue Generation Through Vape Shops, 2015-2022
While, sales of traditional nicotine replacement
products, such as patches and gums have been
Shops ($ Million
rising. This shift can be attributed to positive
perception of the devices and their efficacy in
helping smokers quit. E-cigarettes have become
the fastest growing consumer products in the
nation with a market value of over $XX million.
In 2015, over XX million people used e-
cigarettes regularly, and the number is 2015 2016 2017 2018 2019 2020 2021 2022
Device 90.92 104.43 119.10 136.39 157.20 179.20 209.69 240.75
estimated to be rising at around XX% per year. Aftermarket 166.86 191.29 218.98 250.79 287.32 329.29 377.59 434.35
BIS Research Analysis
Brexit and the implementation of EU-TPD have adversely affected the vape shop business, causing thousands of stores to exit the
market. Currently, the UK is estimated to have around XX vape shops. In 2015, over $XX million of the revenue generated in the UK
e-cigarette market is calculated to have come through vape shops. Till 2014, rechargeable e-cigarettes were the go to e-cigarette
type among Britons but the preference has now shifted to VTMs. Since these devices are primarily sold through vape shops the
revenue generation through these dedicated stores has been on the rise. By 2022, vape shops are anticipated to generate over $XX
million in revenue, bulk of which will come through sales of VTMs and bottled e-liquids.
Contact: sales@bisresearch.com 30
6.3 Europe E-cigarette Vape Shops Market, by Country
Russia
Figure: Russia E-cigarette Market Revenue Generation Through Vape Shops, 2015-2022
Russia has one of the largest smoking populations in
Europe, over XX million, and one of the highest
Shops ($ Million)
on average still costs $XX, i.e. significantly less than
cost of e-cigarette. Moreover, the country lacks local
manufacturers and presence of big players and most
vapor products are imported from China, which has an
unregulated market, and often produces low quality
products. The market thus presents immense potential 2015 2016 2017 2018 2019 2020 2021 2022
Device 43.15 53.47 69.56 89.45 115.13 150.13 195.93 255.84
to be one of the largest e-cigarette markets in the
Aftermarket 53.87 65.83 82.73 104.17 135.42 171.54 217.71 276.76
world.
BIS Research Analysis
Since the e-cigarette market in Russia has not been regulated at a legislative level, there has been only one law that has been obstructing in the
growth of e-cigarette market in the country. In 2012, all the advertisement and all the products having an indirect relation with tobacco products
such as candy and gum shaped cigarettes, were banned. Currently, $XX million of e-cigarette sales occur through vape shops, the other significant
channel is online e-commerce sites. Unlike most other European countries which prefer VTMS, Russians use multiple device types almost equally,
although rechargeable e-cigarettes lead the market. VTMs, bottled e-liquid and batteries contribute majority of this revenue. By 2022, vape shops
are expected to become the primary source of these products, with a revenue generation of over $XX million.
Contact: sales@bisresearch.com 31
6.4 Europe Country Wise Vape Shop Analysis
U.K
Poland
Germany
France
Italy
Contact: sales@bisresearch.com 32
6.4 Europe Country Wise Vape Shop Analysis
There have been multiple surveys and research studies conducted across Europe pertaining to revenue generation and
consumers preferences. However, due to fast changing dynamics of the industry and consumer preferences, there has been
no conclusive analysis on what are the best selling e-cigarette product type across countries or how many vape shops actually
exist in each country.
Europe currently stands at the forefront of the global e-cigarette and vaporizer market and has exhibited a mushrooming
growth in the number of vape shops since 2013. Europe map representation in the previous slide represents the countries
with the maximum e-cigarettes market revenue generation in the continent and maximum number of vape shops. The
opportunities and revenue generation trends are also discussed in this segment.
Before diving deeper into understanding the growth potential and current stature of vape shops in Europe it is important to
understand the methodology involved to carry out the consequent analysis.
The approximate number of vape shops are derived from a number of paid and unpaid database and directories
The count of vape shops for individual countries include shops which have more than one franchise in the same state
Tobacco shops where vaping products are sold, do not add up in the total count of vape shops Online vape shops, C-stores
or any other brick-and-mortar outlet selling e-cigarette devices and accessories do not add up in the total count of vape
shops
Contact: sales@bisresearch.com 33
6.4 Europe Country Wise Vape Shop Analysis
Though many news articles and publications suggest that there are over XX vape shops in Europe as of December 2015,
however, these include the tobacco shops as well. The scope of this study is focused on dedicated vape shops and therefore,
the total count of vape shops is estimated to be XX as of mid 2016. Owing to the hefty taxation imposed on few countries
including Italy, Romania, and Latvia among others many vape shops were forced to exit the market as well. The recent
implement of a stringent set of EU-TPD regulations has further plummeted the count of vape shops across several countries.
The following figure represents the statistics of the top revenue generating states in Europe, pertaining to Vape Shops:
Figure: Top Europe Countries by No. of Vape Shops and Respective Smoking Population
60 2500
50
2000
Smoking Population ($ million)
30
1000
20
500
10
0 0
Russia Germany France U.K Italy Poland
Smoking Population Number of Vape Shops
Contact: sales@bisresearch.com 34
6.5 Europe Country Wise Vape Shop State
Cluster Analysis
A major basal factor for the analysis of the market size of e-cigarette and vaporizer in Europe is the smoking population. This
along with an exhaustive set of macro factors such as per capita cigarette consumption by country, cost of smoking, cost of e-
cigarettes, and smoking related fatalities among others help in deriving the vaping population of individual countries. Currently
the number of vape shops fall in sync with the vaping population of a country but not necessarily with the smoking population
of the country and the same is reflected in the previous figure.
For instance Russia has the highest smoking population in the region with relatively lesser count of vape shops when
compared with the U.K. and Germany (countries with relatively lower vape shop count). When e-cigarette were on the path of
exponential growth in 2013, Spain was among the first few countries where the market saw a surge of vape shops. However,
in comparison to the increase of vape shops, the vaping population did not proportionally rise. Therefore, the vape shops and
vaping business plummeted in the country with only 10% of the original number of vape shops operating in the market.
The recent development of the U.K. exiting the European Union is anticipated to impact the vape shop business in the country
as significantly as it was speculated at the time of EU TPD implementation. Currently, there are no significant changes,
however the situation will be more critically analyzed in 2017.
Contact: sales@bisresearch.com 35
GOT QUESTIONS?
THANK YOU
BIS Research
Global Delivery Center
9100 West Bloomington Freeway,
A 21, Kailash Colony,
Suite 159 Bloomington,
New Delhi,
MN 55431
India
Europe
Tel: +91 11 46120391
Tel: +1 650 228 0182
Contact: sales@bisresearch.com 36