Since the advent of e-cigarette, the United States has been the largest revenue generating region in e-liquid and e-cigarette market, with a dynamic nature of the market. The rising interest of big tobacco companies in the e-cigarette market gave a boost to the e-liquid market, with high proliferation in the demand of e-cigarettes and accessories. However, government regulations and taxation policies on e-cigarette and related products will affect the market in the coming years. The demand of e-liquid has surged in the market owing to the exponential growth witnessed over the past years. Companies are making new consortiums and forming alliances to expand the popularity of e-liquids and an increasing number of convenience stores and online retailers are expanding their product offerings to attract the consumers.
A fast growth rate of the e-liquid market in the UK and other regions of Europe is mainly due to the consolidated nature of the market. Due to certain regulatory policies in Europe considered to be under revision, new players have a comparatively easier entry and exit in the industry; and hence, are acting as driving forces for the European e-liquid market.
The European e-liquid market has been in the hold of EU’s Tobacco Product Directives (TPD) for the past 14 years. Increasing number of deaths and deteriorating public health in EU due to escalating tobacco intake added up to an impending need for a proper regulation of tobacco products and introducing TPD. Last year, European Union made way for a much needed revision of the TPD, which focused on adequate convergence of the European e-cigarette and consequently, the e-liquid market.