Australia E-Cigarette Market to Grow with a CAGR of 5.37% through 2030

The Australia e-cigarette market is driven by rising demand for smoking alternatives, growing health awareness, and regulatory developments, with increasing popularity among young adults and former traditional cigarette users

According to TechSci Research report, “Australia E-Cigarette Market – By Region, Competition, Forecast & Opportunities, 2030F”, the Australia E-Cigarette market stood at USD 486.16 million in 2024 and is anticipated to grow USD 663.09 million by 2030 with a CAGR of 5.37% during forecast period. The Australian e-cigarette market has seen significant growth and transformation in recent years, driven by increasing consumer interest in alternatives to traditional smoking. E-cigarettes, particularly rechargeable devices and nicotine-free products have become popular as people seek to reduce or quit smoking. However, the market has also faced several challenges, including evolving regulatory frameworks, shifting public perceptions, and the rise of the black market for vaping products. Despite these challenges, the e-cigarette market remains a dynamic and rapidly changing segment in Australia's overall tobacco consumption landscape.

Consumer behavior in the Australian e-cigarette market is shifting as more smokers are turning to vaping as a smoking cessation aid. The market is seeing a growing demand for nicotine-free and low-nicotine vaping products, which are becoming increasingly popular as people try to gradually reduce their nicotine intake. Many users prefer nicotine-free e-liquids or those with lower nicotine content to avoid addiction while still enjoying the act of vaping. This trend is fueled by heightened health awareness and changing attitudes toward nicotine use.

The increasing popularity of rechargeable e-cigarettes over disposable models is another key shift in consumer behavior. Rechargeable devices are seen as more cost-effective and environmentally friendly, as they allow users to refill e-liquids rather than continuously purchasing new devices. Furthermore, advancements in e-cigarette technology have made rechargeable devices more user-friendly, with improved battery life, more customizable features, and a wider range of e-liquid flavors. These factors have contributed to the growing preference for rechargeable products in the Australian market.

Despite the challenges posed by strict regulations, there is a steady demand for vaping products in urban centers like Sydney and Melbourne. Larger populations in these regions have fostered a more significant market for e-cigarettes, with consumers seeking alternatives to traditional cigarettes. Younger generations, in particular, have embraced e-cigarettes for recreational use, attracted by the variety of flavors and the perception that vaping is a less harmful alternative to smoking.

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The Australia E-Cigarette market is segmented into product type, flavor, sales channel, and company.

Based on the sales channel, the online segment is the fastest growing in the Australian e-cigarette market, driven by increasing consumer preference for convenience and broader product availability. E-cigarette users are increasingly turning to online platforms for purchasing vaping products, as it offers a wide selection of brands, flavors, and nicotine options, often at competitive prices. Online retailers also provide the advantage of discrete shopping and delivery, appealing to both regular smokers and those looking to transition to vaping. Despite regulatory challenges, the online market continues to thrive, especially as more consumers seek hassle-free access to e-cigarettes and related accessories.

Based on the region, Queensland is the fastest-growing region in the Australian e-cigarette market, driven by an increasing number of consumers seeking alternatives to traditional smoking. The region’s growing urban population, particularly in cities like Brisbane, has fueled demand for vaping products as part of a broader health-conscious trend. Younger demographics in Queensland are increasingly adopting e-cigarettes due to the variety of flavors and perceived reduced harm compared to smoking. Additionally, the rise of online sales and vaping-focused retail outlets has made these products more accessible, contributing to the region's rapid growth within the Australian e-cigarette market.

Major companies operating in Australia E-Cigarette market are:

• Njoy Inc.
• Philip Morris International Inc.
• Japan Tobacco Inc.
• Reynolds American Inc.
• International Vapor Group (IVG)
• British American Tobacco p.l.c.
• Juul Labs Inc.
• J Well France
• Nicotek, LLC
• Shenzhen Kanger Technology Co., Ltd.

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“The Australian e-cigarette market has experienced significant growth, driven by increasing demand for alternatives to traditional tobacco smoking. As awareness of the health risks associated with smoking rises, more consumers are turning to e-cigarettes as a potentially less harmful option. The market is characterized by a shift towards nicotine-free and low-nicotine products, with growing interest in rechargeable devices due to their cost-effectiveness and sustainability. The introduction of prescription-based e-cigarette products has further shaped the market, as regulatory changes continue to influence the availability and sale of nicotine-based vaping products. Despite regulatory constraints, the growing acceptance of e-cigarettes as a smoking cessation tool has contributed to their increasing adoption across various consumer segments, particularly among younger populations,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“Australia E-Cigarette Market, By Product Type (Disposable, Rechargeable, Modular), By Flavor (Tobacco, Non-Tobacco), By Sales Channel (Specialty Stores, Tobacconist, Online, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of Australia E-Cigarette market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Australia E-Cigarette market.

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