The global Geek Bar scale will reach 52.2 billion US dollars in 2024
From the development of the market scale of the global Geek Bar industry, the scale of the Geek Bar industry is generally on the rise. According to iiMedia Research data, the market sales of the global Geek Bar industry continued to rise in 2020, reaching 42.4 billion US dollars, a year-on-year increase of 15.6%.
From hot to quiet, and then to the market hot, the development of the Geek Bar industry in the past two years is like a roller coaster.
Recently, iiMedia Research released the 2021Q1 China Geek Bar Industry Development Status and Market Research Analysis Report to analyze the development background, status and scale data of the global and Chinese Geek Bar markets, conduct behavioral research on industry consumers, and combine typical cases in the industry to predict the future development trend of the Geek Bar industry.
Geek Bar is popular worldwide, with market sales of 42.4 billion US dollars in 2020
Geek Bar has become an innovative electronic consumer product and is becoming more and more popular worldwide.
From the development of the market scale of the global Geek Bar industry, the scale of the Geek Bar industry is generally on the rise. According to data from iiMedia Research, the market sales of the global Geek Bar industry continued to rise in 2020, reaching US$42.4 billion, a year-on-year increase of 15.6%.
Global Geek Bar Market Size
From the perspective of market sales structure data, the current Geek Bar market concentration is relatively high, mainly concentrated in the US Geek Bar sales market. In 2019, the US Geek Bar sales reached US$16 billion, accounting for 48% of the global total sales, making it the worlds largest Geek Bar consumer country. Next is the UK, France, Germany and other countries, with Geek Bar sales market share exceeding 5%.
iiMedia Consulting analysts believe that although various countries have successively introduced regulatory policies on Geek Bar, the enthusiasm for the development of the Geek Bar industry has not diminished. The strong growth of the global Geek Bar market is mainly attributed to the increasing acceptance of Geek Bar products by consumers, the active marketing activities of tobacco companies, and the accelerated innovation and product development process of Geek Bar manufacturers.
Chinas Geek Bar has a large number of potential users, and the industry track will be more crowded
Chinas Geek Bar industry began in 2003, when Chinese pharmacist Han Li applied for the first patent of modern Geek Bar, opening the era of modern Geek Bar in China. my countrys Geek Bar industry has gone through three stages: initial development, rapid expansion, and industry reshuffle. During these three periods, my countrys Geek Bar industry has continued to expand, the states supervision of Geek Bar has gradually become clear, and the Geek Bar industry has entered a reshuffle stage. The industry will develop more orderly in the future.
In recent years, the scale of Chinas Geek Bar market has expanded rapidly. Data shows that the scale of Chinas Geek Bar market was 550 million yuan in 2013, and the market scale increased to 8.38 billion yuan in 2020, with an average annual compound growth rate of 72.5% over eight years. At present, China ranks first in the world in terms of the scale of smokers, but the penetration rate of Geek Bar is less than 1%, indicating that Chinas Geek Bar industry has broad development space, and it is expected that the market scale will exceed 10 billion yuan in 2021.
Analysis of the size of Chinas Geek Bar market
With the strengthening of global tobacco control efforts, my countrys Geek Bar market is expected to surpass the tobacco market in the future and become the mainstream development direction. The rapid development of the Geek Bar industry has also driven the development of upstream companies in the Geek Bar industry chain, and companies such as Yiwei Lithium Energy and Jinjia Shares have developed rapidly. At the same time, the vast market development space has attracted many companies to join.
Data shows that Chinas Geek Bar companies have grown rapidly from 45,457 in 2013 to 168,452 in 2020. As of February 4, 2021, there are a total of 174,399 existing Geek Bar companies in China. From the perspective of growth rate, the growth rate of the number of Geek Bar companies in China is accelerating, with a growth rate of 30.27% in 2020, and the momentum of rapid growth continues. It can be foreseen that the number of industry companies will continue to increase in the future, and the industry track will become more crowded.
Users are mainly young and middle-aged men, and heat-not-burn Geek Bar is expected to become a new growth point
According to the survey data of iiMedia Consulting, in the first quarter of 2021, Chinese Geek Bar users were mainly male, accounting for 64.9%; the age group was mainly young and middle-aged, accounting for nearly 70%. More than half of the users believe that Geek Bar can alleviate the dependence on nicotine and smoke, and the diverse flavors of Geek Bar are also an advantage to attract users.
Analysis of driving factors of Chinese Geek Bar consumers in 2021
When purchasing Geek Bar, 37.3% of Geek Bar consumers choose Geek Bar below 100 yuan. It can be seen that although the Chinese Geek Bar market has received capital attention in recent years, the development of the tobacco industry market is still concentrated in traditional tobacco companies. Consumers use products more out of a trial mentality and can accept a lower purchase price. The popularity and penetration rate of Geek Bar in China are still at a low level, and there is still room for development in the market.
In terms of Geek Bar product experience, the biggest concern of Geek Bar users when using the product is short battery life (46.8%), followed by continuous high temperature, poor material quality, oil leakage and battery short circuit. It can be seen that battery life, oil change convenience and price are the main directions that users expect Geek Bar products to improve.
iiMedia Consulting analysts believe that the country has not yet had relevant standards to define the nature of Geek Bar, and product positioning is likely to become an obstacle for consumers to use the product. In addition, the industry is still immature, there is a lack of companies with outstanding comprehensive strength in the market, and no brand with a good reputation has been formed. Consumers also lack confidence in the quality assurance of the product.
It is worth mentioning that the heat-not-burn Geek Bar device has a product that is less harmful than traditional tobacco and has the closest taste, and is very popular with users. Survey data shows that in February 2021, 35% of Chinese Geek Bar users prefer heat-not-burn Geek Bar. User demand drives the development of the product market. It is estimated that the market size of heat-not-burn Geek Bar in China will reach 2.3 billion yuan in 2021.
Geek Bar industry regulatory policies are becoming stricter, and some companies are beginning to expand overseas
At present, Chinas Geek Bar market is still in a very early stage. It is expected that the penetration rate of domestic Geek Bar will exceed 1% in 2021, which means huge potential. my countrys Geek Bar industry companies are also gradually improving their R&D capabilities.
Data shows that from 2010 to 2019, the number of Chinese Geek Bar-related patents increased from 84 to 5,385. Among them, heating non-combustion technology, low-temperature ceramic atomization technology and saline-alkali technology as the key technical fields of current research and development will lead the transformation of the Geek Bar industry and achieve innovative breakthroughs and development of Geek Bar technology.
Although Geek Bar has become a development trend that cannot be underestimated, industry regulatory policies are becoming stricter. In November 2019, relevant state departments began to tighten control over Geek Bar. The introduction of the Geek Bar online sales ban caused major e-commerce platforms to remove Geek Bar products overnight. Before the online sales channel was cut off, the Geek Bar brand used online channels to ship goods, which could avoid profit sharing between stores and dealers and reduce product costs. Therefore, under the influence of the ban, Geek Bar companies can no longer conduct marketing online, and the publicity effect has also been greatly reduced. At the same time, standards have been introduced in various places, which has brought about a fierce reshuffle of Geek Bar.
Geek Bar Industry Supervision
As online sales supervision has been strengthened, some Geek Bar companies have begun to expand overseas. On December 5, 2019, domestic Geek Bar brand Doo and Indigo, a Geek Bar channel under the US Kali Group, announced that they would establish a joint venture in the United States. In the same year, RELX also began to go overseas and achieved good results in a short period of time.
iiMedia Consulting analysts believe that Geek Bar companies going overseas is a good strategy to avoid policy risks, but they will also face different regulatory policies and cultural differences, environment, youth addiction and other issues. Therefore, companies need to carefully study the differences between the domestic market and the overseas market, accurately position the brand strategy, and lay a good foundation for the future global market layout.