The electronic cigarette market is gaining momentum, and is expected to rise by an average of 24.2% every year through 2018. While this rise takes place, tobacco sales are declining at a rapid pace.
The electronic cigarette industry is growing at an astonishing rate. Fortune magazine notes the rising trend in e-cigarette sales in a June, 2014 article titled, “U.S. e-cigarette sales seen rising 24.2% per year through 2018”. In the article it states, “Sales of e-cigs in the United States, estimated to now be a $1.5 billion market, are set to grow 24.2% per year through 2018, according to new projections from Research and Markets.” The article continues to cite the fact that traditional cigarette sales have declined 29.6% since 2004, and are still on the decline.
E-cigarette sales are projected to surpass tobacco sales, overtaking the tobacco market in its entirety inside of 10 years. USA Today reported on a study from the CDC stating that despite a seven year stall at 18% for a decrease in smoking, 2013 saw another 1% decrease. This brings a 19% overall decrease in tobacco product use. A December, 2014, article by the Olympian corroborates this trend by citing another report issued by the CDC. This article states that smoking in the United States is at an all-time low. Statistics show that only 17.8% of Americans smoke cigarettes. This is the lowest number of smokers in the US since 1965. That is a significant number.
In the past several years, smoking cessation products – primarily e-cigarettes – have continued to dominate a market that big tobacco companies at one time reigned supreme. This trend is projected to continue in its rise until it has overtaken the traditional cigarette market completely.
This chart from USB and Wells Fargo illustrate the market growth for e-cigarettes. These numbers represent values in millions. The sales, indicating market growth, substantiates the rate of incline through 2017 at its current rate of escalation. This model was conceived through market research and estimations based on current market values. Using these standards for growth projections entail a significant decline in tobacco sales in order to make room for this growing market.
A Growing Trend
TechNavio recently published a report in regards to the global e-cigarette market. TechNavio is a tech-focused research firm who specializes in market trends in the field of technology. They have projected that the global e-cigarette market is expected to grow at a CAGR of 24.14% from 2015 through 2018. According to the majority of market researchers, the growing trend of e-cigarette use will not stop anytime soon. The prediction of e-cigarettes overtaking the tobacco industry by and large seems inevitable at this rate of growth.
These firms have continued by making room for the inclusion of market fluctuations, normalization, and economic regression. This projections account for possible legislative decisions, as well. In regards to regulation, the lack of evidence supporting adverse risks associated with e-cigarette use only supports its popularity and substantiates its use as an alternative to smoking analogue cigarettes. Studies have already introduced supportive research into e-cigarettes as a viable method of smoking cessation. The reports concluded that e-cigarettes hold a significantly higher success rate for quitting smoking than nicotine gum, the nicotine patch, or quitting cold turkey.
As a result, these studies indicate that as e-cigarette sales increase and tobacco sales decrease, the total healthcare expenses per household may see a drastic decline. As with any smoking cessation aid, e-cigarettes provide a safer alternative to using tobacco products. They also provide a method of easy transition from one, to the other. According to studies, e-cigarettes also hold the highest rate of success for quitting smoking, over patches or nicotine gum.