Analysing the market of vaping
ANALYSING THE MARKET OF VAPING AND ITS ECONOMIC IMPACT IN SOUTH AFRICA REPORT
The report is an economic impact study of the vaping market in South Africa and is not intended to express a health impact assessment of the product on its user’s. This report was commissioned by the VPASA and was compiled independently by Canback Consulting .
At the launch of the report, Zodwa Velleman said that the local e-cigarette industry has huge growth potential but this could be hampered by the proposed Bill. “The local e-cigarette market generated more than R1.16 billion in sales revenue in 2017 and is projected to triple in size over the next decade, but this growth is threatened by the new proposed Bill”, said Velleman.
The report has four key objectives, namely:
- Provide an overall assessment of vaping globally and evaluate South Africa’s positioning within the vaping market
- Provide an understanding of the vaping market in South Africa and evaluate its potential future growth
- Evaluate the affordability of vaping in the South African market and the demand drivers that would impact future growth
- Evaluate the socioeconomic impact of the vaping market in South Africa with a focus on job creation
The formal combustible cigarettes market refers to the section of the market where excise duties and taxes have been paid. The informal and illicit market has limited interaction with vaping products and its inclusion would affect comparisons to other more developed vaping markets. Informal markets are not part of this study.
Non-combustible tobacco-based products have been excluded in the comparatives, as this market is not adequately developed in South Africa and current data is unreliable.