Changes in the Demographic Shift and Consumption Scale of E-Cigarettes in the U.S. Market During the Second Half of 2025

U.S. E-Cigarette Market in H2 2025:

Consumer Shifts and Changes in Consumption Scale

Executive Summary

In the second half of 2025, the U.S. e-cigarette market entered a period of relative maturity. While overall consumption remained stable, the structure of the consumer base shifted noticeably. Youth usage continued to decline, while adult and repeat-user consumption became increasingly dominant. As a result, market growth slowed but became more predictable, reflecting a transition from rapid expansion to consolidation.

1. Market Size and Consumption Scale

The United States remained the largest single e-cigarette market globally in 2025. Total retail revenue was estimated at approximately USD 9–9.5 billion, with growth in the low single digits compared to 2024.

This indicates that while the market did not contract, headline growth decelerated, driven by regulatory enforcement, price sensitivity, and reduced product variety at retail.

Source:Statista, E-Cigarettes Market – United Stateshttps://www.statista.com/outlook/cmo/tobacco-products/e-cigarettes/united-states

2. Shifts in Consumer Demographics

2.1 Continued Decline in Youth Usage

Youth e-cigarette use in the U.S. continued its downward trend entering 2025. National survey data show that past-30-day use among middle and high school students fell to its lowest level in over a decade, reflecting the cumulative effects of flavor restrictions, enforcement actions, and age-verification requirements.

Source:U.S. Food and Drug Administration (FDA), National Youth Tobacco Surveyhttps://www.fda.gov/tobacco-products/ctp-newsroom/youth-tobacco-product-use-25-year-low-yet-disparities-persist

2.2 Adult Users as the Core Market

At the same time, adult usage remained resilient. Long-term data indicate that e-cigarette consumption is increasingly concentrated among adults aged 25–49, particularly former or current cigarette smokers using vaping products as a nicotine alternative.

While comprehensive 2025 adult prevalence data are still emerging, historical trends show that adult usage has remained stable or increased modestly in recent years, offsetting declines among youth.

Source:U.S. Centers for Disease Control and Prevention (CDC), E-Cigarette Use Among Adultshttps://www.cdc.gov/nchs/products/databriefs/db524.htm

3. Consumption Behavior: From Experimentation to Habit

H2 2025 data suggest that the market is now driven less by experimentation and more by repeat consumption:

• Fewer new users entering the market

• Higher purchase frequency among established users

• Reduced flavor switching

• Stronger brand loyalty

This shift mirrors consumption patterns historically observed in traditional tobacco categories and signals market normalization rather than decline.

4. Product Mix and Retail Dynamics

Disposable e-cigarettes remained the dominant product format in 2025, accounting for the majority of unit sales in U.S. convenience and mass-market channels. However, growth in this segment slowed noticeably in H2 2025 as enforcement actions reduced product availability and retailers prioritized compliant SKUs.

Closed-pod systems and established brands benefited from this environment, gaining shelf stability even as total category growth moderated.

5. Regulatory Environment as a Market Filter

Rather than shrinking demand outright, regulatory actions in 2025 functioned primarily as a filter:

• Removing non-compliant and short-lived brands

• Reducing impulse and youth-driven purchases

• Reinforcing adult-focused consumption

This led to a smaller but more stable consumer base, with fewer participants accounting for a larger share of total consumption.

Conclusion

The second half of 2025 marked a clear transition for the U.S. e-cigarette market:

1. Overall consumption scale remained stable at around USD 9–9.5 billion

2. Youth participation continued to decline

3. Adult and repeat users became the dominant drivers of demand

4. Growth slowed, but predictability and concentration increased

These trends indicate that the U.S. e-cigarette market is evolving into a regulated, mature consumer category, where future performance will depend less on rapid user growth and more on compliance, distribution stability, and retention of adult consumers.