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E-Cigarettes vs Conventional Cigarettes
Instead of burning through rolled tobacco, the user inhales vapor with nicotine and other chemicals. It basically takes the "smoke"out of smoking but leaves in the mild sedative and euphoric effects of nicotine. This device is battery-operated and can be refilled and recharged constantly without needing replacement.
The best part is that looking for a light will become a thing of the past.
Forecasting Rapid Growth
Since 2012, what began as a simple, inexpensive alternative to conventional cigarettes is now growing into something huge. According to BIS Research, the global e-cigarette industry is expected to grow into a $50 billion industry in the next 10 years.
This spells out bad news for Big Tobacco and Big Pharma.
Since e-cigarettes currently face very little regulation around the world, demand is quickly skyrocketing. . By 2025, the e-cigarette industry will experience an estimated CAGR growth of over 22.36%. As more brands appear into the market, the competition between companies is intensifying.
As quality and standards raise, there will be many exciting innovations in this industry. At this point, the e-cigarette is still in its infancy.
Where the E-Cigarette Industry Currently Stands
In 2014 there was a lot of activity in the e-cigarette industry. There was patent warfare, changes to regulations, major acquisitions, and topping it off with some insane product launches. Imperial Tobacco, one of the world's largest multinational tobacco companies, partnered up with Reynolds America to acquire Blu E-cigs, a manufacturer of premium e-cigarettes, for the US. Smart move since Europe set up many stringent regulations that are to come into effect in late 2016. Japan Tobacco, another tobacco giant, bought out Logic Technology. Japan Tobaco's focus, however, is more on the currently established markets and less on the Asia-Pacific region.
In the Asia-Pacific region, e-cigarettes are not gaining popularity at the same rate as in Europe and the U.S. This region - which includes India, China, and Japan - has both the largest producers and consumer base of tobacco products in the world. If e-cigarette manufacturers could convert just a small percentage of consumers to e-cigarettes, then the potential for revenue from these countries is enormous. China, in spite of not having a large e-cigarette market, is the manufacturing hub for 80% of e-cigarette products.
Concerns and Controversies
With the growth of e-cigarettes, there has also emerged a small subculture. There are U.S. At this point in time, the market is driven by established brands, competitive pricing, personal customization and the myriad of health benefits.
There are some concerns however, such as an unpredictable regulatory framework, compatibility issues and instances of e-liquid/nicotine poisoning. These issues, which are really just the industry's growing pains, are sure to be addressed and ultimately resolved.
The Future
By 2017 the e-cigarette industry will stabilize as regulations will be "set in stone" and the culture will have become established.
E-cigarettes are here to stay and soon enough might just overtake conventional tobacco products completely.
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