Research and Markets is a market research outlet that recently published a report showing that the US ecig market would have an annual growth of 24.22% from this year until 2018. The report covers present scenario as well as growth prospects for the ecigarette market within the 4-year period.
E-cigarette Market in the US 2014-2018
Calculation of the market size involved consideration of the revenue generated from ecigs sales and other related products (eliquids, refills and cartridges) sales. It was also assumed that ecig sales within the forecast period will not be affected by any legal and sociopolitical dynamics in the USA.
In this report, vendor landscape and corresponding detailed analysis of 4 key vendors in the US ecig market were also presented. Also included are the major drivers influencing ecig market growth in the country; as well as the challenges that vendors and the market in general face. Emerging key trends key trends that could contribute to market growth were outlined.
Inputs from the industry experts along with in-depth analysis of the market were used as bases for this report. The key vendors presented in the report were LOGIC Technology Development LLC, Lorillard Inc., NJOY Inc., and Vapor Corp.
The other prominent vendors presented were – Altria Group Inc., Ballantyne Brands LLC, British American Tobacco plc, CB Distributors Inc.,FIN Branding Group LLC, Gamucci Ltd., Imperial Tobacco Group plc, Nicotek LLC, Reynolds American Inc., Vapestick Group Ltd., VMR Products LLC, Zandera Ltd.
Among the key market drivers is the increased desire of consumers to quit smoking cigarettes while the key market challenges include stringent standards and regulations that the government wants to implement. Changes in preferences and lifestyle are among the key market trends.
Many Are Switching To Electronic Cigarettes
Many American smokers are deciding to quit their habit and a great number of them are turning to ecigarettes. In the US, the sales of the devices are now about $1.5 billion and this report shows that it will grow at about 25% each year until 2018. This is most likely what drives Big Tobacco Companies in entering and venturing into the ecigarette sector. Yet, the segment that this report only cared to look at is electronic cigarettes available in the c-sector. There are other sectors in the ecig market that are now displaying immense and impressive popularity such as vaporizers.
In USA, traditional cigarette sales decreased 29.6% since 2004, according to the data of Euromonitor International. Decreasing cigarette sales can be attributed to intense campaigns against smoking such as public smoking bans. Some experts and analysts even believe that ecigs could surpass traditional cigarettes within 10 years. In the last couple of years, many tobacco companies have been taking a plunge: acquiring established ecigarette companies or developing their own ecig device.
A key vendor included in the report is Lorillard that bought Blu ecigs in 2012 and UK-based Skycig in October 2013. Reynolds American, meanwhile, introduced its own developed device, Vuse digital vapor cigarette in Colorado. This summer, Reynolds plans to rollout Vuse across the country.
Altria was the last among the three US tobacco giants to grab hold of the vaping market when it began selling MarkTen ecigarettes in Indiana in 2013. Earlier this year, Altria purchased a well-known brand of electronic cigarette, Green Smoke.
Part of what makes the ecigarette market appealing is the lack of regulations enveloping it. Unlike tobacco cigarettes that are almost choked by prohibitions, regulations, policies and taxes, ecigs are said to allow smokers to regain their longed for freedom.
Tobacco companies that were banned from advertising its products on television, radio and other media are able to go back to the limelight through ecigarettes. However, this free and Wild, Wild West scenario is expected to change as the FDA has already started taking actions in regulating the products as tobacco.
If treated as tobacco, ecigs will likewise face grave restrictions that could possibly kill the bidding sector even before it could impart its potential benefits to public.