An analysis by Xerfi, the Institute of Economic Studies, has taken stock of the e-cigarette industry in France. Estimates suggest that the French vaping market could see a formidable rise in the next few years, reaching total revenue of 500 million Euros by 2020.
The French e-cigarette market currently has 1.2 million daily users, and the industry is largely held-up by daily vapers. But the market is growing at a rate of 5-10% per year and is already valued at 350 million Euros.
After a drop in revenue in 2015, the vaping market has since revived. Saturated by a staggering amount of e-cigarette boutiques, the industry is now better structured and has a more reliable network to retain customers. The experts at the Xerfi institute suggest say the industry is “much more coherent” and “better positioned”. For example, the industry can now count on large distribution networks as well as the recent emergence of individual vaping brands.
Expected developments for the e-cigarette market
The study’s estimates suggest that the vaping market is entering a growth phase. Notably, the price increase of cigarette pack to 10 Euros in 2020 could be a major influence on the amount of smokers who turn to vaping.
There are still multiple unknowns, however, such as the lack of scientific consensus on the health effects of vaping. Additionally, the French government has not yet taken a firm stand on e-cigarettes, a decision that may influence market development.
Xerfi’s prediction, however, based on the price increase of cigarette pack prices to 10 euros, is that ecigarette industry revenue will reach 500 million Euros by 2020. This would be a huge increase compared to today’s market, but one that nonetheless seems viable given the current situation.