E-Cigarette Growth Predicted to Continue
Posted by Tatiana Rodriguez | Filed under E-Cig Industry Info
Everyone is weighing in on the future of electronic cigarettes. We’ve taken a look at the history of the e-cigarette in previous posts, and we continuously document all the big industry changes as they happen. That’s what we do here at VaporCigarette.com. A recent report took a closer look at the future growth of electronic cigarettes, which is as an industry in the USA, is barely five years old.
UBS Financial linked the meteoric rise of electronic cigarette smoking to that of the .com boom in the 1990′s. Growing by triple digits each year, the industry picks up new players each week it seems like. Everyone is vying for the almighty market share in the space, varying their price points, components, and doing all they can to be a little bit different in an effort to win support from potential consumers. While the industry is a competitive one, many people expect consolidation to occur over time. Larger brands will be acquired by Big Tobacco or other big business in an attempt to diversify their portfolio and grab a hold of a huge piece of an enormous customer base. Smaller brands may be folded into the offers of existing e-cigarette companies, and the industry will shape up to have a dynamic group of firms representing the majority of the market share.
It’s estimated that in 2011 the e-cigarette industry was a $250 million business. That’s a market that one association, called the TVECA (Tobacco Vapor Electronic Cigarette Association) predicts will once again double in 2012. (We’re still not sure why the organization uses the word “tobacco” in it’s name as there is not a hint of tobacco in these products.)
While the Internet always remains the best place for consumers to buy direct from e-cigarette brands, Wells Fargo points out the growth opportunity is clearly in retail. The amount of brands that exist in retail channels is small, but growing each day. Continued growth in retail channels such as gas stations, convenience stores, and tobacco shops is expected.
Here’s an excerpt from a report read online:
The Wells Fargo report noted that blu and NJOY appear to be “emerging as early market leaders.” Retailers told Wells Fargo that blu’s purchase by Lorillard, with its extensive sales force and legal experience, has given the brand (and the category overall) “credibility” and “legitimacy.”
It’s hard to argue with the retail presence of these two brands. Blu Cigs has a deal with Walgreens while NJOY is surfacing in many 7-Eleven’s in the USA. The two brands have a huge market share in retail locations even though they are not viewed as top products by many reviews we read online. Many Blu Cigs Customers have complained about the Customer Service and battery life.
NJOY’s website details that it’s available in over 10,000 locations in the USA, including Hess, Stripes, Sunoco, and Chevron, in addition to the aforementioned 7 – Eleven.
The future of e-cigarettes is certainly bright, and we look forward to covering the news as it happens right here at vaporcigarette.com.
Tags: brick and mortar, retail sales
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