The vaping market in Latin America has experienced substantial growth, reaching a valuation of approximately USD 4.3 billion in 2022, with projections indicating it could surpass USD 7 billion by 2028, reflecting a compound annual growth rate (“CAGR”) of around 9.9%. The largest markets include Chile, Brazil and Mexico, primarily due to rising health awareness and the perception of e-cigarettes as a less harmful alternative to traditional smoking. In Chile, for example, the high smoking prevalence (around 44.7%) has driven demand for alternatives like e-cigarettes.

Brazil’s significant population and emerging middle class also contribute to increased consumption, with over 6 million vapers reported in 2022. “There has been quite heavy lobbying by marketers to position vapes as a healthier alternative to tobacco, which is quite inaccurate, as well as being a fashionable topic,” mentioned an NGO specialising in public policies for health.

“There has been quite heavy lobbying by marketers to position vapes as a healthier alternative to tobacco, which is quite inaccurate.”

Member of an NGO specialising in public policies for health, Mexico

Mexico benefits from its growing youth demographic who are more inclined to use vaping products. “Young people are key,” stated a marketing coordinator of an electronic cigarette company “Let’s not forget that this is a generational battle.” Driven by the fact that disposables and nicotine products have become especially popular with young people, providing a more accessible and convenient experience, “the value of the market has multiplied about x10 from a couple of years before the pandemic to today,” insisted the marketing director.

“Public health issues are central to the regulatory debate on vaping in Latin America and each country has concerns.” The director continued, “One of the main objectives of governments is to reduce the consumption of nicotine products among young people and to prevent underage access to these products.”

The relationship between governments and tobacco companies is complex; some countries exhibit clear opposition to vaping, while others may be more open to dialogue, albeit often under significant public health pressures. The tobacco industry has been known to lobby for relaxed regulations in some countries, trying to position heated tobacco products as a less harmful alternative, although this has faced significant pushback from health advocates. “The regulatory adjustments that allow recreational consumption would come in the midst of the judicial reform process, which could hamper any attempt to block the new legislation,” confirmed a member of Salud Justa Mexico.

“The regulatory adjustments that allow recreational consumption would come in the midst of the judicial reform process, which could hamper any attempt to block the new legislation.”

Member of Salud Justa Mexico

The member expanded, “There has also been a backlash from industry and some lobby organisations trying to position the anti-prohibitionist arguments because banning commercialisation will only open the door to a black market.” He continued, “The government’s own initiative has broad political support and even the regulator, COFEPRIS, has come out in favour of it,” with discussions ongoing about the future of e-cigarettes and heated tobacco products.

In Latin America, the vaping market has been growing, but it’s still navigating competition with heated tobacco products (“HTP”s) and traditional cigarettes. Vaping has gained traction, particularly in Brazil and Argentina, where cultural attitudes towards smoking alternatives are shifting. For example, Brazil has seen significant increases in vaping product consumption, with market size reaching approximately USD 647 million in 2023, projected to grow to around USD 1.1 billion by 2026.

The Ministry of Health in Mexico is leading a youth-focused campaign on the health risks of certain devices. Industry adjustments to new labelling and sales restrictions are required by May 2025. Limited communication with large companies has fuelled an informal market for unregulated products, which pose safety risks as they often lack adherence to health standards.

Mexico’s government, led by President Claudia Sheinbaum, has confirmed plans to embed a national ban on e-cigarettes and vapes directly into the country’s constitution. Motivated by public health concerns about vaping’s appeal to youth, this move risks fuelling the black market for vapes. Experts caution that a vape ban may inadvertently strengthen cartel control over the market, with regulation and taxation proposed as more effective methods for reducing harm and oversight gaps.

While vaping is on the rise, “cigarettes remain the most profitable option for tobacco companies,” relayed the marketing coordinator. Traditional smoking still commands a significant share of the market, generating approximately USD 24 billion in 2023. But, as highlighted by the coordinator, “With regulations changing and more people becoming health-conscious, vape and heated tobacco brands have a great opportunity to attract those looking to quit conventional cigarettes.”

As demand for smoking alternatives rises, particularly among young people, Latin American countries face the challenge of balancing market growth with public health policies that address nicotine addiction and underage users. Policymakers are navigating evolving consumer habits, health concerns and the risks posed by an expanding black market, which could profit significantly if regulations fail to keep pace.