Future for Electronic Cigarettes
Electronic cigarettes are less than ten years old on the market yet they seem to be getting a strong foothold among users. But, some are asking, is it just a fad that will pass or it is indeed a new product that has come to stay?
We tend to trust scientifically established information and a recent Wells Fargo survey set out to answer some questions to do with vaping. The findings from the tobacco retailers and wholesalers that exceeded 30,000 in number were very telling.
A New Trend Is On.
Almost 75% of the wholesalers and retailers that participated in the survey expressed the view that e-cigs are here to stay and that their use will grow by at least 40% each year. This is a very strong statement coming from the people who are in daily contact with users of tobacco products so you cannot ignore what they have to say on the matter.
Further credibility to this prediction is provided by the huge names in the tobacco industry picking a more than casual interest in joining the production of e-cigs alongside the tobacco smokes. That means big capital is knocking on the door, a clear confirmation that the market is present and growing so they want a cut of the huge profits that the trend promises.
Respondents pointed out that the current regulation by the FDA was rather light and that the absence of taxes both at the national and regional or state levels was good for the growth of the young industry. This is because the cost benefits to users are too obvious that they alone can drive conversion from the tobacco cigarettes even before other factors are considered.
The survey respondents conveyed a general consensus that consumers are likely to reach 10 million by 2014, up from only an estimated 2.5 million in 2012. That is huge growth potential, a clear indication that e-cigarettes are no passing fad.
Future Consolidation, Taxes And Regulation.
Most survey takers were of the view that as the use of e-cigs grows, the regulatory framework will most likely tighten and taxes will also be levied. They feel such moves could dampen the rate at which the use of the devices grows but the momentum gained would still push growth.
As more players join the production fray, there is a feeling among retailers and wholesalers that mergers will take place so that a few giants dominate the industry, just as it is with the tobacco cigarettes.
They also feel that once the benefits of e-cigs over tobacco are understood, the taxes will not be as punitive or prohibitive as they are on tobacco cigarettes so the general trend of e-cigs being cheaper will remain, driving further conversion.
The above survey was released in 2012, and we are already seeing a lot of what it foretold. What is inescapable is the reality that e-cigarettes are here, and that their use is growing worldwide. The FDA has not yet revealed its long term card regarding e-cigs but whatever it does; the users will always prevail and drive further growth. Are e-cigs a fad? Certainly not!