Canada, one of the world's top three e-cigarette markets, has drawn the attention of e-cigarette manufacturers around the world. To gain a better understanding of this market's current status and future trends, we conducted in-depth research into the preferences of Canadian e-cigarette consumers, with the hope of providing strong support for our clients' business decisions.
Our research reveals that e-cigarette users in Canada have a strong preference for certain flavors. Among the most popular flavors are fruit. Other flavors include menthol, tobacco, desserts, candy, and beverages.
Canadian market size:
Regulatory landscape:
Since October 2022, the federal government has imposed a consumption tax on e-cigarette products in Canada. The tax applies to all e-cigarette-related products manufactured or imported into the country, including e-cigarette devices. The excise duty introduces a tax of CAD1 per 2 ml of e-liquids for the first 10 ml of e-liquid in the vaping device or refill bottle. For amounts over the first 10 ml, the tax is CAD1 per 10 ml.
A flavour ban on e-cigarette products may come into effect in 2023. The ban prohibits the addition of any flavourings to e-cigarette products except for tobacco and menthol/mint. Currently, the ban has been implemented in Nova Scotia, New Brunswick, the Northwest Territories, Nunavut and Prince Edward Island. Quebec, a province with a population four times that of these provinces combined, has also recently begun to officially implement a flavor ban. British Columbia, Saskatchewan and Ontario have implemented partial flavour bans, allowing only e-cigarette specialty shops to sell other flavour products, while other stores such as convenience stores and fuel stations are prohibited from selling other flavours.
Retail channels:
E-cigarette shops are the most popular retail channel in Canada, with the number of e-cigarette shops increasing nationwide except in provinces that have implemented the flavour ban. In Canada, e-cigarette products can be purchased not only from specialty stores but also from convenience stores and gas stations, making offline purchases more convenient. However, vapers in provinces with a full flavour ban are more likely to use online channel. This may mean that online sales will see a significant increase after the national flavour ban is implemented.
***2023 Q2 research data from best-selling branded products from the following 5 popular websites: 180smoke.ca, canvape.com, dashvapes.com, fatpanda.ca, vapevine.ca; total 2023 Q2 product samples 5,173;
Among the best-selling products
Growth trend of different types of products
Among the best-selling products
Percentage of different nicotine types
Among the best-selling products
Flavor complexity as a percentage
Among the best-selling products
Percentage of major flavor categories and secondary segments
In best-selling products
Flavor elements that appear more frequently
Zinwi Canadian market flavor recommendations
Based on our research, we recommend that e-cigarette manufacturers focus on developing and promoting fruit and mint flavors to capture a significant share of the Canadian market. Additionally, e-cigarette manufacturers should keep an eye on regulations and adapt their product offerings accordingly. Our findings provide valuable insights into the Canadian e-cigarette market and can help businesses make informed decisions to improve sales and market share.