E-cigarettes first appeared in South African marketplaces around a decade ago. E-cigarette use has increased dramatically without a corresponding decline in cigarette smoking. Nonetheless, e-cigarettes are not yet regulated as tobacco products because the e-cigarette business continues to vigorously fight against the passage of planning laws that would have done so. A search of the grey literature, government publications, and industry-commissioned reports complemented the narrative evaluation of peer-reviewed South African literature on e-cigarettes up to December 2021. Despite being less dangerous than regular cigarettes, e-cigarettes do not eliminate the risk of nicotine-related health problems or the emission of specific toxins. The present tobacco law in South Africa does not regulate any e-cigarette or nicotine-based product. As a result, customers are unaware of the growing health risks linked with the continued use of e-cigarettes. To address the confusion around the safety of e-cigarettes, the South African government plans to pass the "Control of Tobacco Products and Electronic Delivery Systems Bill" before the end of 2019, with cooperation from the World Health Organization (WHO). The main points of the bill are prohibitions on public smoking, regulations on tobacco product promotion and electronic delivery systems, a prohibition on financial or other support, a prohibition on vending machines, standardisation of the packaging and appearance of tobacco products and electronic delivery systems, and age restrictions on the sale of products. The bill is likely to create major hindrances in the growth of the e-cigarette market in South Africa, as manufacturers would not be able to advertise their tobacco products and electronic delivery systems. Due to ambiguous legislation and import policies, imported devices are primarily from China. Companies such as Shenzhen IVPS Technology Corporation Ltd., Shenzhen IJOY Technology Co. Ltd., Joyetech Group, and JUUL Labs Inc. are the key players operating in the market.
According to the research report, "South Africa E-cigarette Market Overview, 2028," published by Bonafide Research, the market is projected to add USD 153.92 Million by 2028. In terms of product type, the modular devices category held the largest market at around 50% in 2022. The key element driving the category is the devices' high-level customization ability to integrate multiple functionalities and components. These elements and components, depending on individual preferences, alter the flavour and volume of vapour produced by the device. The regular organisation of vaping events, including conferences and contests, increases the need for modular devices. Furthermore, the Next Generation e-cigarette category is predicted to develop significantly throughout the projection period due to features such as portability, lightweight, and discretion. Because of their popularity among teenagers, flavours such as tobacco and botanical account for more than 50% of the overall market share. Fruit flavour is expected to develop quickly during the forecast period due to rising consumer demand, particularly for the taste of real fruits. One of the primary factors contributing to the market's favourable growth is the emergence of e-cigarette retail websites. The primary drivers of rising e-cigarette sales in South Africa include decreased use of traditional cigarettes, cost-effectiveness, relative healthiness compared to traditional cigarettes, convenience, and the safety provided. The information provided by internet platforms is important in establishing the perception of frequent e-cigarette users. E-cigarette producers are rapidly marketing and promoting their goods online, including through social media and by offering online discounts. The biggest e-cigarette manufacturers in South Africa deliver their products through vendors who distribute e-cigarettes online on their behalf. Suppliers include VapeShop, Vape Africa, and eCiggies Online Store.
As e-cigarettes gain popularity, flavor and fragrance sellers are presenting a wide range of e-cigarette flavours to entice e-cigarette makers. Menthol, mint, chocolate, cola, and bubble gum flavors, as well as fusions of various fruits and flavouring chemicals, are tempting a huge number of consumers to adopt e-cigarettes. In South Africa, around 20.0% of the population smokes after the age of 15, and 450 thousand people use e-cigarettes. Furthermore, the advent of different tastes in e-cigarettes is enticing kids to use e-cigarettes. Consumer desire for new flavours is fast increasing, thus manufacturers are focusing on developing e-cigarettes with new flavors.
As per the World Bank, South Africa will have a population of 60.04 million people in 2021, with 29.56 million men and 30.48 million women. Twenty million people are under the age of 14, and 34 million are between the ages of 15 and 64. There are 8.2 million urban residents and 1.26 million rural residents. According to the World Bank, South Africa's GDP in 2021 will be USD 419.95 billion, with an inflation rate of 6% and a per capita income of US$6,994.2. According to a recent poll on e-cigarette use in South Africa, the results of a nationally representative study suggest that the number of e-cigarette users is far higher than the number provided by industry-commissioned surveys. Contrary to industry assertions, e-cigarettes are more expensive than normal cigarettes, and the proposed law, the Control of Tobacco Products and Electronic Delivery Systems Bill, would promote public health by regulating e-cigarettes as tobacco products rather than medicines. Furthermore, the government's proposed e-cigarette levy would produce much-needed income for the government while reducing young e-cigarette use.
The offline distribution channel, which consisted of retail outlets, accounted for the majority of the market share. E-cigarettes were initially sold at retail businesses such as vape shops and gas stations. These shops assisted customers in selecting from a wide range of devices and e-liquids. Furthermore, vape shops that allow clients to sample and test these devices before purchasing them are predicted to improve the retail store category during the projection period. Because of the increased online sales potential for e-cigarettes, suppliers were pushed to tighten their online purchasing systems in terms of security and dependability, resulting in increased demand for these items online. Flavor and fragrance sellers are supplying a varied choice of e-liquids to compete with the growing popularity of vaping devices. Various tastes, such as menthol, mint, chocolate, cola, bubble gum, and fusions of other fruits and flavouring substances, are luring a large number of consumers to adopt these e-cigarette devices.
The spread of COVID-19 has contributed to the decline of the South African e-cigarette market due to disruptions in the supply chain and the discontinuation of production. Moreover, consequent disruptions in the operations during the lockdown period in the country have affected the sales revenue for many of the top e-cigarette brands in the term and significantly contributed towards the slow growth of South Africa's e-cigarette market.
Considered in this report
• Geography: South Africa
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028
Aspects covered in this report
• South Africa 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
• Modular E-Cigarette
• Rechargeable E-Cigarette
• Next-Generation E-Cigarette
• Disposable E-Cigarette
By Battery Mode
• Automatic E-cigarette
• Manual E-cigarette
By Distribution Channel
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.
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.
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