E-Cigarette Market Achieves $250 Million Growth in One Year

America’s national smoking contingency has been in a state of decline for years – a transition only those profiting from tobacco sales would argue is a bad thing. Never has the been so much pressure to live a healthy lifestyle or such abundant information on how to make it happen – we’re also living in an age where the right tools for the job are readily available.

Unsurprisingly, electronic cigarettes have become something of a go-to cessation tool for smokers trying to kick the habit or at least cut down. However, according to one particular analyst group, growth in the e-cigarette trade over the last two years alone has seriously outpaced even the more optimistic of projections.

According to Mintel, sales of e-cigarettes blazed from a 2012 tally of $283 million to an extraordinary $537 million last year. In addition, the group also reported that around 34% of all smokers looking to kick the habit or have already successfully quite see the devices as an effective tool for the job. Nicotine patches are still the nation’s favorite with a 35% public approval rating, but e-cigarettes are gaining ground fast.

What’s interesting to note in Mintel’s report is how despite the fact the e-cigarette use and product sales across the US have been explosive over recent year, the smoking cessation market as a whole isn’t moving at nearly such a pace. Between 2008 and 2013, smoking cessation sales grew by a comparatively paltry 10% – or $95 million – though from 2012 to 2013 actually fell 1.7%. According to Mintel, things aren’t going to get much better in the near future either as the growth projection for the segment from now until 2018 is just $7 million.

At the same time, electronic cigarettes are pegged for ongoing and accelerating growth as the US and the world beyond continues to embrace what’s an undeniably controversial alternative to conventional tobacco smoking.

“The sharp falloff in growth of the smoking cessation category between 2012 and 2013, and the forecasted decline over the next five years are largely due to the explosive popularity of e-cigarettes,” reported Mintel’s health, household, beauty & personal care manager, Molly Maier.

“Despite the fact that these products are not an FDA-approved means of quitting smoking, and thus are not included in the sales of the rest of the category, many smokers who would otherwise use NRT (nicotine replacement therapy) products, such as gum, tablets, patches, and sprays, are now looking to e-cigarettes as a viable alternative to smoking traditional cigarettes, and for controlling and ultimately reducing their nicotine cravings.”

In terms of specific population groups, Mintel reported that men are considerably more likely to use electronic cigarettes than women at a rate of 30% to 21%, while Hispanics also responded more favorably to the idea of e-cigarettes than the national average at a rate of 32%.

“Those who have either successfully quit smoking or are trying to quit smoking are more likely than current smokers to have tried e-cigarettes, pointing to the role these products play as a cessation aid,” added.

“Yet unlike traditional smoking cessation products, e-cigarettes are not designed specifically to help a smoker reduce the amount of nicotine s/he consumes, but rather replace the act of smoking traditional cigarettes with vapor-based nicotine delivery devices,”

“High nicotine availability and an experience that closely resembles the act of smoking are also the primary reasons why smokers find e-cigarettes more appealing than smoking cessation products.”

Comments

  1. A year ago there were 15 smokers, including me, and no vapers, in the shop where I work. Today there are 5 vapers, including me) and 10 smokers. We are allowed to vape on the shop floor which is a huge incentive to switch. There is another reason to switch. Cigarettes cost me $3000 a year. A years supply of eliquid, mixed at home costs $45 (forty five dollars). Ecigs are a superior experience accross the board. Cigarettes are obsolete. The Tobacco Age is over. Governments trying to interfere are just rearranging thei deck chairs.

Speak Your Mind