Experts Predict E-Cig Sales Will Climb Nearly 25% Per Year
Tobacco use is rapidly declining, but e-cigs are more popular than ever. As thousands of smokers give up cigarettes once and for all, many are choosing to use electronic cigarettes as a tobacco-free alternative. As a result, e-cig sales are on the rise, creating a profitable market worth around $1.5 billion per year in the United States. Based on the latest market reports, experts predict continued growth for the vaping industry. In fact, analysts expect the market to grow by 24.4% per year until 2018.
This stunning growth comes at the same time that tobacco cigarette sales are tanking. According to Euromonitor International Data, cigarette sales have plummeted nearly 30 percent since 2004. In the face of falling profits, it’s no real surprise that all the major tobacco companies are investing in the vaping market with their own lines of electronic cigarettes. Some analysts on Wall Street predict that ecig sales will bypass cigarette profits within just ten years.
In 2012, Lorillard was the first big tobacco player to make the jump into the vaping market by purchasing best selling Blu E-cigs. Last year, they continued their quest for ecig market domination by acquiring SkyCig, a popular UK brand. In 2013, Reynolds American began the gradual release of Vuse electronic cigarettes and after success in a limited market, the company plans to add their ecigs nationwide by the end of 2014. Altria also tested the ecig market in 2013 with their MarkTen ecig line in Indiana. They plan to release the vaping products in additional states this year.
According to the latest Research and Markets report, we are just seeing the beginning of the ecig surge, with annual growth projected at nearly 25% until 2018. The prediction is based on current growth rates and the ongoing product developments from key US vendors like LOGIC, Lorillard, NJOY, and Vapor Corp. Analysts pointed to 12 other prominent ecig companies that could have a big role in the future success of the ecig industry: Altria, Ballantyne Brands, British American Tobacco, CB Distributors, FIN, Gamucci, Imperial, Nicotek, Reynolds American, Vapestick, VMR Products, and Zandera.
Market analysts say the ecig market is experiencing rapid growth because there is an increased desire among consumers to quit smoking tobacco. Ecig companies can capitalize on consumer desire for tobacco-free alternatives to enjoy major profits. However, future regulations from the FDA could pose a threat. Analysts say that stringent government regulations and standards will be the most important market challenges from 2014 to 2018.
Overall, the future is bright for the electronic cigarette industry. Do you expect ecigs to continue to grow in popularity over the next four years? Which brands will be most likely to dominate?
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