“US Vape Market: Growth Potential Despite Regulatory Challenges

The United States vape market, despite facing complex regulatory challenges, still holds great potential for growth in the coming years.

The regulatory landscape in the US is dominated by the Food and Drug Administration (FDA). As of now, the FDA has only approved 34 tobacco – or menthol – flavored vape products for legal sale, all of which are manufactured by major tobacco companies such as British American Tobacco and Altria. However, the illegal vape market has been a significant part of the overall market. In 2024, sales of unauthorized flavored disposable vapes reached approximately $2.4 billion, accounting for 35% of e – cigarette sales in certain retail channels like convenience stores and supermarkets, according to data from market research firm Circana.

Despite the efforts of the FDA to regulate the market, the demand for vaping products remains strong. The market size of the US e – cigarette and vape market was valued at approximately $8.98 billion in 2022, and according to Grand View Research, it is projected to grow at a compound annual growth rate (CAGR) of 29.8% from 2023 to 2030, with an anticipated value of $69.53 billion by 2030.

Popular products in the US market include disposable vapes with a wide range of flavors. Brands like Geek Bar Pulse have been very successful in the unauthorized market, earning more than $582 million in 2024. Their success can be attributed to factors such as their compact and sleek design, a wide variety of appealing flavors, high nicotine strength options, affordability, and the convenience of being disposable.

With the continuous development of the market and potential changes in regulatory policies, there are still many opportunities for companies to enter the US vape market. Those that can navigate the complex regulatory environment and offer products that meet consumer demands are likely to succeed in this lucrative market.