What are Key Factors Causing Boom of South Africa E-Cigarette Market?


Posted May 27, 2021 by devanshuraizada

The South African e-cigarette market is growing due to the rising health consciousness in the country and increasing sale of such products via online platforms.
 
The South African e-cigarette market is growing due to the rising health consciousness in the country and increasing sale of such products via online platforms. As a result of these factors, from $20.7 million in 2018, the size of the market is expected to witness an 18.6% CAGR during the forecast period (2019–2024), to reach $62.0 million by 2024. Such devices do not contain tobacco, but a vial filled with a liquid containing nicotine and other flavors.

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On the basis of distribution channel, the South African e-cigarette market divisions are vape shop, tobacconist, hypermarket/supermarket, online, and others. Among these, the tobacconist division held the largest share in 2018, as these channels offer an array of premium products, including e-cigars, e-cigarettes, and e-liquids, along with the conventional variants. Till 2024, the online category will witness the most-rapid advance owing to the convenience they offer, such as the ability to check out and compare multiple products, discounts and offers, electronic payments, and free doorstep delivery.

Among the strongest drivers for the market is the growing awareness of people regarding their health. Such products are marketed as less-harmful alternatives to traditional variants, as the absence of tobacco prevents over 4,000 harmful chemicals from entering the lungs. Every year, around 42,500 people in the country die of tobacco use, which is why the government has raised the tax on conventional cigarettes. This, coupled with the increasing health awareness and easy availability of e-cigarettes on e-commerce platforms, will continue to drive the market.

As there are still unclear regulations on the usage of these devices, the South African e-cigarette market is quite fragmented and dominated by Chinese companies. Key industry players include Altria Group Inc., British American Tobacco plc, Japan Tobacco Inc., Philip Morris International Inc., Imperial Brands plc, Shenzhen iSmoka Electronics Co. Ltd., JUUL Labs Inc., Vapor Hub International Inc., Innokin Technology Co. Ltd., Shenzhen IVPS Technology Corporation Ltd., Shenzhen Kanger Technology Co. Ltd., Pax Labs Inc., Shenzhen Smoore Technology Limited, and Korea Tobacco & Ginseng Corporation (KT&G).

Hence, the increasing health awareness will continue to drive the market in the country in the years to come.
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Issued By Devanshu
Country United States
Categories Business
Last Updated May 27, 2021