Home » E-Cigarette Sales Set to Shoot-Up in South Korea in Coming Years

E-Cigarette Sales Set to Shoot-Up in South Korea in Coming Years

by Worldwideanalysis
South Korea E-Cigarette Market Revenue Estimation and Growth Forecast Report

Due to the rising public awareness about the harmful effects of cigarette smoking on the human health, the sales of e-cigarettes are climbing in South Korea. Moreover, the declining popularity and sales of tobacco cigarettes is making many e-cigarette producers focus on developing a diverse product portfolio. For example, British American Tobacco Inc. developed the ‘Glo’ e-cigarette, Phillip Morris International Inc. developed the ‘IQOS’, and Japan Tobacco Inc. launched two e-cigarette brands namely ‘Logic’ and ‘Ploom’ in the country.

In South Korea, people are increasingly preferring smoking e-cigarettes over the traditional tobacco ones, primarily because of the increasing public awareness about the various diseases caused due to tobacco smoking. This is, in turn, driving the advancement of the South Korean e-cigarette market. According to the estimates of P&S Intelligence, a market research company based in India, the valuation of the market will grow from $0.87 billion in 2018 to $3.5 billion by 2024.

Furthermore, the market will grow at a CAGR of 24.3% between 2019 and 2024. Between the male and female populations, the consumption of e-cigarettes is currently higher in the former. This is because women are traditionally prohibited from smoking and using tobacco products in the country. However, with increasing urbanization and education and the launch of exhaustive marketing campaigns by e-cigarette companies, the consumption of e-cigarettes will increase among the females of the country in the coming years.

Vaporizer, cig-a-like, T-Vapor, and vape mods are the major types of e-cigarettes consumed in the country. Amongst these, the sales of vaporizers were found to be the highest in the country in the past years. In the coming years, the demand for T-Vapors will rise rapidly in the country. “Ploom Tech” by Japan Tobacco Industries, “IQOS” by Philip Morris international plc, and “Glo” by British American Tobacco plc are the three major heat-not-burn product brands currently operating in the country.

In South Korea, Gyeonggi witnessed the highest sales of e-cigarettes during the past few years. In the last two decades, this region saw large-scale urbanization, with Seoul witnessing some of the biggest infrastructural development activities in the country. This caused a sharp rise in the disposable income of the people residing in this region, which, in turn, propelled the sales of e-cigarettes. As per reports, the household income in this region grew by nearly 8% YoY from 2017 to 2018.

E-cigarettes are mainly sold via online portals, vape shops, supermarkets/hypermarkets, and tobacconists in the country. Out of these, the sales of these cigarettes via online distribution channels are predicted to rise rapidly in the country in the coming years. With the government expected to increase taxes on e-cigarettes, many sellers are predicted to move to online portals and distribution channels for meeting the soaring consumer demand and augmenting their profit margins.

Hence, it can be said with confidence that the demand for e-cigarettes will soar in South Korea in the coming years, mainly because of the rising public awareness about the harmful health consequences of tobacco smoking in the country.

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