LONDON--(BUSINESS WIRE)--Technavio’s latest E-cigarette market in the US report highlights three key emerging trends predicted to impact market growth through 2019. Technavio defines an emerging trend as something that has potential for significant impact on the market and contributes to its growth or decline.
“The sales volume of traditional cigarettes has declined with an increase in the sales of e-cigarettes. Majority of the global players in the tobacco industry witnessed a decline in the shipment of traditional cigarettes in 2014. An increasing number of deaths caused by smoking-related cancers has propelled people to stop smoking traditional cigarettes,” said Abhay Sinha, one of Technavio’s lead industry analysts for health and wellness research.
“Earlier, the market generated the majority of its revenue from online sales. However, increased popularity of e-cigarettes has led to many companies selling their products in retail/convenience stores. The market generated approximately 72% of its overall revenue through retail sales in 2014. The entry of leading cigarette manufacturers into the market will further increase the number of distribution outlets across US over the forecast period,” added Abhay.
Technavio’s market research study identifies the following three emerging trends expected to propel growth of the e-cigarette market in the US:
- Changing lifestyles and preferences
- Introduction of multiple flavors
- Growing R&D activities
Changing lifestyles and preferences
The e-cigarette market in the US is largely influenced by changes in lifestyle and preferences among people across the country. E-cigarettes are being increasingly adopted by many smokers, especially those who want to quit smoking tobacco but would like to continue vaping. The market is therefore expected to witness huge growth in e-cigarette demand from end-users during the forecast period.
Technavio researchers estimate the number of vaping stores in the US to be around 5,000-6,000, and more vaping stores are opening every month in Tier 1 and Tier 2 cities. Many of these vaping stores do not offer branded e-cigarettes but local customized brands that offer more than 3,000 flavors.
Introduction of multiple flavors
The e-cigarette market in the US is witnessing introduction of a variety of e-cigarettes with different flavors such as menthol, cola, mint, chocolate, watermelon, pink bubble gum, grape, and a mixture of the essences of many fruits. Vendors are introducing more varieties to lure more customers. It is believed that, currently, there are more than 3,000 flavors available in the market, and an average of over 300 flavors are being added to the list every month. This trend suggests that end-users are finding e-cigarettes attractive. The trend is likely to continue and contribute to this market’s growth during the forecast period.
Growing R&D activities
The market is witnessing increasing investments by vendors in R&D activities. Vendors are focusing on reducing production and distribution costs. With rapidly changing technology and consumer preferences, vendors are innovating with e-cigarettes that can survive the ongoing commoditization of the market.
Big Tobacco companies are therefore dedicating a substantial portion of their budgets to studying the effects of e-cigarettes. They have established dedicated facilities to produce different varieties of e-juices. For example, Altria Group's e-liquid is fully manufactured in-house via its division Altria Compounds. Hence, the market is expected to witness development of many innovative e-cigarettes during the forecast period.
Browse related reports:
- Global E-cigarette Market 2015-2019
- Global Cigarette Market 2015-2019
- Global Li-ion Battery Market for E-cigarettes 2015-2019
- Li-ion Battery Market for E-cigarettes in the US 2015-2019
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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