The e-cigarette market - France (2023)

1.2 The growing global market

e-cigarette market size by value and forecasts World, ****-****, US$ billion CAGR: +**.*% Source: ****

The global e-cigarette market has very high growth potential. valued at **.** billion euros in ****, the market is set to grow at a rate of **.*% a year between **** and ****.

Among the world leaders in e-cigarettes is American Juul, the number one e-cigarette brand in the USA: born in ****, the company already accounts for **% of the e-cigarette market in the US. In view of its success, the brand is now marketed abroad, as it has been in France since December ****. [***] Other brands such as Joyetech, Eleaf and Aspire are key players in the sector.

Many countries still ban e-cigarettes, such as Singapore, Thailand, Oman and Taiwan. Many countries prohibit vaping in public places (***). [***]

1.3 A new boom for electronic cigarettes in France

Electronic cigarette market size by value and forecasts World, ****-****, US$ billion Source: ****

In France, the e-cigarette sector has also enjoyed sustained growth since its arrival. There are many reasons for this market's rapid expansion. One of them is that the risks associated with electronic cigarette use are lower than for tobacco. As a result, many smokers are opting for e-cigarettes to break their addiction. The rise in the price of a pack of cigarettes is reinforcing this trend (***).

By ****, the market should reach a size of *.* billion euros.

1.4 Foreign trade

Foreign trade in electronic cigarettes France, ****, in millions of euros Source: ****

As data are only available for ****, it is not possible to provide an overview of foreign trade trends in this sector. However, the balance of trade for e-cigarettes is largely in deficit, with a coverage rate of just *.**.

Main countries receiving electronic cigarettes France, ****, in millions of euros Source: ****

France's main customers in this sector are therefore European. Spain was the biggest customer in ****, exporting €*.** million.

As regards supplier countries, data are not available for European countries. Most French imports come from China (***).

2.1 General perceptions of the dangers of electronic cigarettes

"On a scale of * to **, how would you rate the dangerousness of these products?" France, ****, in % Source: ****

Vaping enjoys a relatively good image when it comes to its effects on health, as shown in the graph above. It is considered the least harmful by respondents (***). What's more, its average level of danger is the lowest, alongside that of sugar, with a score of *.*/**.

It should be noted that for this survey, the sample was made up of smokers, vapoteurs, vapofumeurs and non-smokers/vapoteurs (***). The study also points out that "non-smokers and vapoteurs tend to regard these uses as particularly dangerous, while consumers perceive less harm in the products they use".

2.2 Profile of vapoteurs

Vaping frequency

Smoking frequency of vapoteurs France, ****, in Source: ****

Three-quarters of vapoteurs are daily vapoteurs, while the remainder are occasional vapoteurs. This distribution is identical to that observed in the **** study.

Smoking status

Smoking status of vapers France, ****, in Source: ****

It goes without saying that the majority of vapers are also tobacco users. This is the case for almost **% of them. The latter are vapo-smokers: they regularly use e-cigarettes and tobacco, whether tobacco cigarettes or other types of tobacco (***).

More precisely, the distribution of vapoteurs according to their relationship with tobacco (***) is as follows:

Distribution of vapoteurs according to their relationship with tobacco France, ****, in Source: ****

Almost half of all vapoteurs are also cigarette smokers. Almost a third of vapoteurs surveyed were former daily smokers for more than six months.

2.3 What motivates vapers

Reducing or stopping tobacco consumption

Unsurprisingly, the use of e-cigarettes is largely linked to a desire to reduce tobacco consumption, whether for health or budget reasons.

"Why do you vapotage today?" France, ****, in % Source: ****

According to the data collected, we find that **% of respondents vapotage with the aim of avoiding resuming tobacco consumption that they have stopped. This could indicate the use of vaping as a smoking cessation strategy. On the other hand, **% of respondents say their vaping has nothing to do with smoking, which could suggest other motivations for vaping, such as pleasure or sociability. Finally, *% of those questioned had no opinion on the matter.

In addition, among vapo smokers, the use of e-cigarettes is more closely linked to a desire to reduce tobacco consumption than to quit altogether:

"Why do you vapotage today?" (***) France, ****, in Source: ****

In fact, more than half of vapo smokers (***) use e-cigarettes only to reduce their tobacco consumption, but not to quit completely. Just under a third of vapo-smokers surveyed vaped with the aim of quitting smoking altogether.

If e-cigarettes are such a success and are often perceived as a substitute for tobacco, it's because they are considered less dangerous by most of ...

2.4 Demand trends: DIY and disposable electronic cigarettes

DIY

Almost half of all vapers (***) practice what is known as DIY, i.e. they make their own e-liquid. There are several reasons for this increasingly popular practice:

Main reasons for using DIY electronic cigarettes France, ****, in Source: ANSES According to the data collected, the lower cost of DIY e-liquids is the main reason why users choose this option, with **% of users citing it as their primary reason and **% mentioning it in general. This indicates that economic factors play an important role in the choice of DIY e-liquid users.

The second most commonly cited reason is the ability to adjust nicotine concentration, with **% of users citing it as their primary reason and **% mentioning it in general. This suggests that the ability to control their nicotine intake is an important factor for many DIY enthusiasts.

The third most common reason is that vaping offers an experience that matches users' desires, with **% of users citing this as their primary reason and **% mentioning it overall. This suggests that DIY e-liquid users value the ability to customize their vaping experience.

The fourth most common reason is greater confidence in the composition and ingredients of electronic cigarettes, with **% of users citing this as their primary reason ...

2.5 The French's favourite electronic cigarette brands

The graph below is based on OpinionWay's survey of French consumers' favorite brands in February ****. These are respondents' answers to the question "Do you like this or that brand of electronic cigarettes?" for each brand, with the percentage corresponding to the proportion of respondents who answered "yes".

Vaporesso is the favorite electronic cigarette brand of the French, with **.*% of respondents saying they liked it. Vuse was the least popular of the three electronic cigarette brands surveyed, with *.*% of respondents saying they liked it.

French people's favorite electronic cigarette brands France, March ****, in Source: ****

The graph below compares the approval ratings of three e-cigarette brands according to the age category of respondents. These brands have the specificity of presenting relatively significant differences in the rate of appreciation according to age category. For these * brands, the rate of appreciation is highest in the **-** age group, and decreases with the age of the respondents. This is explained by the over-representation of younger people in the customer base of e-cigarette companies. Comparison of the level of appreciation of X electronic cigarette brands according to age category France, March ****, in Source: ****

In addition, the e-cigarette brands presented in the survey are more popular with men ...

3.1 Electronic cigarette market value chain

3.2 Electronic cigarette manufacturing process

How it works

The e-liquid is heated by a heating element glued to the liquid cartridge, or by an ultrasonic device. This produces vapour, which is not burnt tobacco like a conventional cigarette. Ultrasound is much more popular with manufacturers, as it is more efficient and effective than resistance heating, making it easier to boil the e-liquid. [***]

Manufacturing materials

Vapor production is the result of the presence of three elements:

the e-liquid (***) ; the battery powering this electrical device; the atomizer, consisting of a wick and a resistor, which vaporizes the liquid by heating it up.

Some electronic cigarettes on the market come with a "cartomizer", which refers to the atomizer manufactured in a single block with the cartridge.

As for the composition of the e-liquid, it's made up of vegetable glycerine or propylene glycol in a variety of flavors (***) for those trying to give up smoking gradually with an electronic cigarette.

Manufacturing techniques

The electronic device works by assembly: first the battery and adapters; then the atomizer with stresses or wicks. The final component is the cartridge containing the e-liquid.

3.3 Number of companies and employees in specialized sales

Since e-cigarettes are sold through numerous channels (***), it is difficult to know the total number of establishments involved in the e-cigarette market. However, there is an NAF code for specialized stores: ****Z: "Retail sale of tobacco products in specialized stores".

Below is a graph showing the evolution of the number of establishments in this sector:

Growth in the number of specialist tobacco retail outlets France, **** - ****, in units Source: ****

There has been a marked increase in the number of establishments, reflecting the growing popularity of e-cigarettes. In ** years, almost *,*** more stores have been opened. By ****, there will be *,***.

Quite logically, the number of employees in the sector has also risen:

Change in the number of employees in the tobacco retail sector France, **** - ****, in units Source: ****

Between **** and ****, the number of salaried employees rose steadily from *,*** to **,***, representing overall growth of **.*% over this period. The average annual growth rate over this period is around *.*%. The year with the strongest growth was ****, with a *.*% increase over ****. In ****, there is a slight stagnation, with an increase of just *.*% on ****, before resuming strong growth in ****, with an increase of *.*% on ****.

Finally, the geographical breakdown of establishments registered under this NAF code is as ...

4.1 Typology of electronic cigarette offerings

Electronic cigarette kits can be classified into four distinct categories[***]:

Kit Pods (***): Kit pods are compact devices that feature a non-interchangeable atomizer called a "cartridge". They are designed to offer a simple vaping experience and are suitable for beginners. Some models feature refillable cartridges, while others are disposable.

AIO tubes: AIO tubes are tube-shaped electronic cigarettes designed primarily for beginners looking for an easy solution. They are distinguished by their simplicity of use, with a switch button and flashing LED. These kits are affordable and ideal for new vapers.

Mod kits: Mod kits refer to modifiable electronic cigarettes, consisting of a "mod" part containing the battery and an atomizer. Mods can be classified according to their shape, such as box or tubular mods, and their function, notably electro mods equipped with a screen and protectors.these include electro-mods fitted with a screen and electronic protections, and mecha-mods, which are devoid of electronics and require in-depth knowledge of vape.

Puffs: Puffs are disposable pods pre-filled with e-liquid, available in different sizes offering a certain number of puffs (***). Once empty, puffs can be recycled, but cannot be refilled. These devices are practical for beginners and those wishing to try out electronic cigarettes without ...

4.2 Lower prices than conventional cigarettes

The cost of an electronic cigarette kit varies according to several factors. All-in-one kits, comprising both a box and an atomizer, are generally offered in a price range from ** to ** euros for starter models. However, prices can vary depending on the quality, performance and construction of the kit. It's worth noting that the first purchase can be the most expensive, as it requires complete equipment to switch from traditional cigarettes to electronic cigarettes. Electronic cigarettes are generally long-lasting, and with proper maintenance can last for many years.

If you plan to buy a box and atomizer separately, prices can also vary. A simple starter box can cost around ** euros, while top-of-the-range models can reach up to *** euros. Atomizers have an average price of between ** and ** euros, depending on the model, although high-end options can be more expensive. Buying a box and atomizer separately can save money, but it's important to choose compatible components for a consistent vaping experience. For beginners, a bottom-feeder box and rebuildable atomizer are generally not the best option.

As for the cost of e-liquids, this depends on the type of liquid and its capacity. Nicotined e-liquids, generally limited to ** ml, have an average price of around *.** euros ...

4.3 A market in constant innovation

Vapobars

In a bid to diversify their offering, vape stores are launching new concepts, such as "vapobars" (***), a sort of imitation of e-cigarette version of shisha bars. For example, Vapostore launched a vapobar in Lyon in ****, selling drinks, food and electronic cigarettes.[***]

Nevertheless, these vapobars are still struggling to expand in France due to the difficulties of obtaining a III or IV license authorizing the sale of alcohol, or acquiring additional floor space, staff training, etc.

Innovative features already on offer or potential

R&D is at the heart of the electronic cigarette sector: new functionalities are gradually being developed and could eventually be marketed in France.

Connected or intelligent electronic cigarettes: the first models appeared in **** with, for example, MyVaps, a connected module that lets you see your daily ecigarette consumption in real time via an app on your smartphone. [***] The ecigarette with integrated WI-FI: this possible innovation would enable you to stay connected to the e-liquid supplier, who would himself take charge of e-liquid stock management, placing orders when the stock runs out. [***] Multi-compartment electronic cigarettes: these would enable e-liquid flavors to be changed regularly. Waterproof electronic cigarettes: like smartphones, they would be water-resistant. [***] Electronic cigarettes equipped with a ...

5.1 Electronic cigarette regulations in France

**** Health Act

The **** health law subjects e-cigarettes to a legal regime very similar to that of tobacco and conventional cigarettes:

Prohibition of additives coloring emissions, creating the impression that the product has beneficial effects on health, facilitating inhalation or absorption of nicotine, ... Mandatory information on packaging: composition and average nicotine content in particular No sale to minors Smoking banned in public transport, public places and enclosed workplaces No advertising, except for commercial signs on the front of the establishment or products displayed in the shop window, unless accompanied by a sign or poster.

Nevertheless, here are some of the provisions specific to electronic cigarettes introduced by this legislation:

Nicotine content must be less than or equal to **mg/ml Pre-filled tanks or cartridges must not exceed *ml Refill bottles must not exceed **ml Health warnings must cover **% of the * largest surfaces of the packaging, and state "The nicotine contained in this product is highly addictive. Its use by non-smokers is not recommended". Liquid refills must not feature any graphic representation of fruit.[***] ****, a pivotal year for e-cigarette regulation.

Since ****, the e-cigarette market has been highly regulated at French and European level, particularly concerning advertising measures or the supervision of places where ...

5.2 Anti-smoking policies

The National Tobacco Reduction Program (***) established as part of the latest Cancer Plan has three main focuses: Protecting young people and preventing them from taking up smoking Help smokers quit Acting on the tobacco economy. Anti-smoking policies are supposed to work in favor of vaping, as electronic cigarettes are seen as a substitute for smoking. Nevertheless, French public authorities refuse to encourage the use of e-cigarettes, and instead regulate their use rather strictly. They are also improving access to other smoking cessation aids, demonstrating a certain mistrust of e-cigarettes. On the other hand, Public Health England in the UK has officially recognized e-cigarettes as a viable substitute for smoking cessation (***), which has benefited the sector with an immediate rise in sales.

6.1 Segmentation

• My Vapors Europe - Joyetech
• Alfaliquid Gaïatrend
• Kumulus Vape
• J Well
• Kangertech
• DLICE / Nocoswitch
• Vaporesso / Smoore technologie
• Le Petit Vapoteur
• Cigusto
• Clopinette
• VDLV
• Aeroma
• Vapostore
• Smok-it
• Juul Labs
• Innokin Technology
• Republic Technologies Groupe