In June, the electronic cigarette industry crossed the threshold of $6 billion in annual sales worldwide – a huge milestone for the relatively new trade. As more and more smokers eschew the use of traditional cigarettes in favour of safer, cheaper methods such as e-cigs, the tobacco industry is slowly realising that this is a problem that will not go away any time soon.
Many in Europe believe that certain aspects of the Tobacco Products Directive were actively lobbied for by those looking to stifle sales of e-cigs and prevent vapers from being able to quit traditional cigarettes completely. The strength of public opinion is working against them, however, with nicotine replacement therapies dropping for the first time since 2008, as vaping devices continue to grow in popularity. And thanks to a new study recently conducted by Infiniti Research, the outlook is great.
Focusing on the growth of the e-cig industry from 2016 to 2020, Infiniti believes that its Compound Annual Growth Rate will increase by 24.33% by the start of the next decade. The report believes that a big reason for the increase is the prevalence of vapers around the world, and the recommendations they make to friends, family and co-workers who are in a similar situation.
Tobacco companies starting to respond
Of course, most tobacco companies have faced increasing disdain over the last few decades, yet still manage to present a sustainable business model that reaps hundreds of millions in profits each year. However, with the purchase of ‘blu’ e-cigs by Lorillard (a large tobacco company recently acquired by Reynolds American), are we beginning to see the tobacco industry taking advantage of the vaping uprising?
Many commerce experts believe that tobacco companies who adopt their business model to include the provision of e-cigs now will prosper greatly in the future, with some going as far as to claim that they will eventually outsell the global sales of traditional cigarettes.
With new technologies emerging almost every month in the world of vaporisers, the quality of devices and e-liquids are only going to improve in quality and efficiency. Furthermore, as more and more research gets published in support of the use of e-cigarettes versus traditional cigarettes, the societal acceptance of the practice by the public and governments alike will ultimately increase.
There are over 500 e-cigarette manufacturers globally and plenty of support for the practice of vaping – and with an increasingly vocal number of users around the world, it is clear that the vaping revolution is in full swing.