page_title: Electronic cigarette
section_title: Economics
hierarchical_section_title: Electronic cigarette / Society and culture / Economics
caption_attribution_description: English: Vaping stand Enfield shopping centre
context_page_description: An electronic cigarette is an electronic device that simulates tobacco smoking. It consists of an atomizer, a power source such as a battery, and a container such as a cartridge or tank. Instead of smoke, the user inhales vapor. As such, using an e-cigarette is often called "vaping". The atomizer is a heating element that atomizes a liquid solution called e-liquid. E-cigarettes are activated by taking a puff or pressing a button. Some look like traditional cigarettes, and most versions are reusable.
  E-cigarettes create an aerosol, commonly called vapor, made of particulate matter. The vapor typically contains propylene glycol, glycerin, nicotine, flavors, and traces of toxicants, carcinogens, heavy metals, and metal nanoparticles. Its exact composition varies, and depends on several factors including user behavior.
  The health effects of electronic cigarettes remain uncertain, but they are likely less harmful than smoking tobacco. E-cigarette vapor contains fewer toxic chemicals, in lower concentrations, than cigarette smoke, but also contains harmful chemicals not found in tobacco smoke.
  Nicotine is toxic and highly addictive.
context_section_description: The number of e-cigarettes sold increased every year from 2003 to 2014. In 2015 a slowdown in the growth in usage occurred in the US. As of January 2018, the growth in usage in the UK has slowed down since 2013. As of 2014 there were at least 466 e-cigarette brands. Worldwide e-cigarette sales in 2014 were around US$7 billion. Worldwide e-cigarette sales in 2019 were about $19.3 billion. E-cigarette sales could exceed traditional cigarette sales by 2023. Approximately 30–50% of total e-cigarettes sales are handled on the internet. Established tobacco companies have a significant share of the e-cigarette market.
  As of 2018, 95% of e-cigarette devices were made in China, mainly in Shenzhen. Chinese companies' market share of e-liquid is low. In 2014, online and offline sales starting increases. Since combustible cigarettes are relatively inexpensive in China a lower price may not be large factor in marketing vaping products over there.
  In 2015, 80% of all e-cigarette sales in convenience stores in the US were products made by tobacco companies. According to Nielsen Holdings, convenience store e-cigarette sales in the US went down for the first time during the four-week period ending on 10 May 2014. Wells Fargo analyst Bonnie Herzog attributes this decline to a shift in consumers' behavior, buying more specialized devices or what she calls "vapors-tanks-mods (VTMs)" that are not tracked by Nielsen. Wells Fargo estimated that VTMs accounted for 57% of the 3.5 billion dollar market in the US for vapor products in 2015. In 2014, dollar sales of customizable e-cigarettes and e-liquid surpassed sales of cigalikes in the US, even though, overall, customizables are a less expensive vaping option. In 2014, the Smoke-Free Alternatives Trade Association estimated that there were 35,000 vape shops in the US, more than triple the number a year earlier. However the 2015 slowdown in market growth affected VTMs as well. Large tobacco retailers are leading the cigalike market. "We saw the market's sudden recognition that the cigarette industry seems to be in serious trouble, disrupted by the rise of vaping," Mad Money's Jim Cramer stated April 2018. "Over the course of three short days, the tobacco stocks were bent, they were spindled and they were mutilated by the realization that electronic cigarettes have become a serious threat to the old-school cigarette makers," he added. In 2019, a vaping industry organization released a report stating that a possible US ban on e-cigarettes flavors can potentially effect greater than 150,000 jobs around the US.
  The leading seller in the e-cigarette market in the US is the Juul e-cigarette, which was introduced in June 2015. As of August 2018, Juul accounts for over 72% of the US e-cigarette market monitored by Nielsen, and its closest competitor—RJ Reynolds' Vuse—makes up less than 10% of the market. Juul rose to popularity quickly, growing by 700% in 2016 alone. On 17 July 2018 Reynolds announced it will debut in August 2018 a pod mod type device similar Juul. The popularity of the Juul pod system has led to a flood of other pod devices hitting the market.
  In Canada, e-cigarettes had an estimated value of 140 million CAD in 2015. There are numerous e-cigarette retail shops in Canada. A 2014 audit of retailers in four Canadian cities found that 94% of grocery stores, convenience stores, and tobacconist shops which sold e-cigarettes sold nicotine-free varieties only, while all vape shops stocked at least one nicotine-containing product.
  By 2015 the e-cigarette market had only reached a twentieth of the size of the tobacco market in the UK. In the UK in 2015 the "most prominent brands of cigalikes" were owned by tobacco companies, however, with the exception of one model, all the tank types came from "non-tobacco industry companies". Yet some tobacco industry products, while using prefilled cartridges, resemble tank models.
  France's e-cigarette market was estimated by Groupe Xerfi to be €130 million in 2015. Additionally, France's e-liquid market was estimated at €265 million. In December 2015, there 
caption: Vaping stand in London shopping centre.
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