Water vapor; water in its invisible gaseous state, can be made to condense into the form of small cloud droplets. By adding particles such as the smoke enhances the process of water condensation and by squeezing the bottle then releasing it causes the drop in air pressure, which is like air rising to make a cloud.
Besides, why did you put water in the bottle?
This causes the temperature inside the bottle to rise. This causes the temperature inside the bottle to fall and the water molecules to condense. The smoke particles act as cloud condensation nuclei, allowing the water molecules to condense and stick together around the smoke.
How does the cloud form?
Clouds form when the invisible water vapour in the air condenses into visible water droplets or ice crystals. There is water around us all the time in the form of tiny gas particles, also known as water vapour. There are also tiny particles floating around in the air - such as salt and dust - these are called aerosols.
Why does cloud in a jar work?
When you then release the balloon, you decrease the air pressure in the jar, which results in cooler air. As the air cools, the water vapor in the jar condenses. The condensed water vapor is able to collect on the smoke particles from the match, and thus you see a cloud form.