Summary

Latin America E cigarettes market is forecasted to witness a CAGR of 5.46% during the forecast period (2020 - 2025).

Key Highlights
E-cigarettes, or electronic nicotine delivery system (ENDS) are being increasingly used by people as a substitute for smoking or for recreational purposes. Due to the growing health concern over usage of conventional tobacco-based cigarettes, the e-cigarette market has witnessed a significant growth over the past decade.
In Latin America, vaping is either illegal or the laws are uncertain about e-cigarettes. For example, vaping is banned in major countries, like Argentina, Brazil, Mexico and Venezuela, while there are no definite laws in countries, like Peru and Colombia. As enforcement of e-cigarette laws are often open to local authorities, vape shops are often found in places where they are technically illegal in the region. In the entire region only five regions where the sale of E cigarette is leagal ans allowed are Chile, Ecuador, Honduras, Paraguay, and Costa Rica.


Key Market Trends

Entry of Big Enterprises in this Space

Since the sales of e-cigarette is limited to just five Latin American countries, the distribution of these products are also limited by Chinese private companies such as Innokin Technology, and KangerTech. Therefore, considering this factor, this also creates an opportunity for major players to venture into these five Latin American countries, where its legal to sell e cigarettes. For instance, in 2013, Gilla Inc. signed a production and supply agreement with a South American distributor to supply electronic cigarettes and related accessories. Under the terms of the Supply Agreement, the Distributor has reserved the exclusive right to distribute a brand of the Company's e-cigarette products in Brazil, Chile, Paraguay, Uruguay, Argentina, Venezuela, Columbia, Peru and Ecuador. Hence there is a huge growth for big enterprises in the E-cigarettes market in Latin America.

Increasing Health Concerns Among the Smoking Population

The WHO reported that cancer was the second-leading cause of death, globally, and was responsible for approximately 8.8 million deaths in 2015. Moreover, tobacco usage is the primary risk factor for cancer, and is responsible for approximately 22% of cancer deaths. Increasing cases of tobacco-related cancer around the world, with most cases being related to cigarette smoking, have resulted in the public looking for alternatives for either substituting or quitting cigarettes. Multiple countries have already banned public smoking, while local governments are following suite.

Considering this fact, E-cigarettes are considered to be less toxic and safer than conventional tobacco cigarettes, which has made it a viable alternative. A research study concluded that the people who smoked only e-cigarettes had similar levels of carcinogens to people using nicotine-replacement therapies, andhad much lower toxicity levels than people who only smoked cigarettes. The reduced toxicity levels, combined with cost concerns, is expected to drive the e-cigarette market in the Latin American countries

Competitive Landscape

Some of the major companies selling e cigarettes in the Latin American market are KangerTech, Innokin Technology, British American Tobacco and Smok. Most of these companies sell their range of e cigarettes via different online wesites such as Revolution Vapor Ltda., and C.R. Vapor. Since its legal to sell or use e-cigarette in Ecuador, where they are considered 'electronic nicotine delivery systems', advertising of e-cigarette in Ecuador is only allowed in venues accessed solely by adults, thereby providing some form of consumer knowledge regarding the brands or companies selling their range of e cigarettes in the country.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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