People of Japan are shifting toward e-cigarettes to eliminate the excretion of smoke and protect themselves and the environment from harmful effects of tobacco burning. Unlike the tobacco cigarettes, the e-cigarettes produce mist that is easily dissolved in the air within a few seconds. As these alternate smoking devices do not produce ash and smoke, they can be administered in locations where cigarette smoking is prohibited, due to the harmful health effects posed by the conventional cigarettes.
Furthermore, increasing product innovation by manufacturers is expected to drive the Japanese e-cigarette market at a CAGR of 22.6% during the forecast period (2019–2024). Owing to the introduction of new vaping devices, e-cigarettes are widely used by people who are addicted to tobacco and seeking to quit smoking. Moreover, fewer negative health impacts of ashless and smokeless vaping products over tobacco cigarettes are key reason influencing the adoption of these products among consumers. These factors assist the market to reach from $1.2 billion in 2018 to $4.5 billion by 2024.
The e-cigarette manufacturers and vendors are offering an array of products for the Japanese population. The product portfolio includes disposable and rechargeable cig-a-like, closed system and open tank vaporizer, vape mod, and infused and heat-not-burn T-vapor. In the coming years, the Japanese populace will prefer rechargeable cig-a-like over other products, as it offers flexibility in continuous usage. According to P&S Intelligence, this e-cigarette will be mostly used by the people within the age group of 35–44 years, in the coming years.
All these products are easily available at vape shops, hypermarket/supermarket, convenience stores, vending machines, general stores, pharmacies, gas stations, and online platforms. In the coming years, the customers of Japan are expected to mostly buy e-cigarettes from e-commerce platforms, as there are few barriers to establishing a new online business. Moreover, heavy discounts offered by online players like Amazon Japan and Rakuten are one of the prime reasons attracting the customers toward this distribution channel.
The aftermarket segment of the Japanese e-cigarette market is categorized into refill, battery and charger, and others that include coils, tanks, and atomizers. Among these, the refill category held the largest market share in 2018. This category is further classified into liquid type, including nicotine-based and non-nicotine-based e-cigarettes; and flavor, including fruit, tobacco, menthol, candy, savory/spice, bakery/dessert, beverage, menthol tobacco, and others. Among these, in 2018, the nicotine-based liquid type refill dominated the market, as it is being marketed as an alternative for tobacco cigarettes.
The highest quantity of e-cigarettes is consumed in the Kanto region of Japan, as it has the presence of umpteen number of new users and ex-smokers. The region is also the most urbanized area in the country, due to the existence of cities, such as Kanagawa, Tokyo, and Chiba, which hold a vast population. Other regions in the country adopting a considerable number of vaping products include Hokkaido, Kyushu & Okinawa, Tohoku, Chubu, Chugoku, Kansai, and Shikoku.
To cater to the widening customer base in different regions, players in the Japanese e-cigarette market, including Japan Tobacco Inc., Philip Morris International Inc., Imperial Brands plc, and British American Tobacco plc, are increasingly adopting strategic measures such as product launches and mergers and acquisitions. Other players focusing on the market include Altria Group Inc., JUUL Labs Inc., Pax Labs Inc., Shenzhen Kanger Technology Co. Ltd., Shenzhen IVPS Technology Corporation Ltd., Shenzhen iSmoka Electronics Co. Ltd., and Innokin Technology Co. Ltd.
Thus, the availability of new products, the establishment of multiple distribution channels, and the consciousness regarding harmful effects of tobacco smoking will escalate the usage of e-cigarettes in Japan, in the coming years.
