During the review period there was strong growth in e-cigarettes. This growth was influenced by a decline in the number of traditional cigarette smokers, accompanied by the rapid growth in the number of adults and young people using e-cigarettes. E-cigarettes is a fast growing category and is currently the most profitable category within the tobacco industry. The rapid rise of vapour products in the Netherlands has prompted many tobacco manufacturers to enter the category by introducing electronic cigarettes and cig-a-likes. In this way tobacco companies are trying to compensate for the decline in their revenue from cigarettes by introducing e-cigarettes. In 2015, total value sales of vapour products in the Netherlands stood at €87 million, with the category expected to grow by 19% in constant 2015 value terms over the forecast period.
The competitive landscape is much more fragmented and less driven by brand recognition, with the presence of big tobacco manufacturers with vapour product lines and vapour manufacturers. While there are a handful of brands with higher penetration, in general sales in the category are generated through a relatively high number of small and medium-sized importers and distributors.
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This industry report originates from Passport, our Tobacco market research database.