E cig market touches $ 2 billion mark: Same revenue that age old cigar companies earn!
Yes; market of electronic cigarettes or popularly known as e cigs have crossed $US 2 billion globally. And the growth is expected to be more than one fold during first 10 months of the year 2013. A detailed study by Euromonitor International (http://www.euromonitor.com/) says that the smokeless cigarette will definitely conquer more place in global market in future. What really surprising is; the stupendous growth of e cigs since 2005.
And the global transaction by small cigar companies is also $ 2 billion! But these cigar makers are indeed very old players. So you can imagine the speed at which e cig market is growing.
What more interesting is, big time tobacco companies entering into e cig market. They are either buying a promising brand that is new to market or start their own e cigs.
The year 2012 witnessed two such developments. Lorillard brought ‘Blue e cigs’ for US $ 135 million. The deal was made in April 2012 and I was told that they are diving deep into e cig ocean now.
Second big innovation of the year happened when Swisher’s eponymous introduced their e cigs. Walking a step ahead of their competitors, Swisher’s introduced e cigars!
According to experts who are doing a extensive research on e cigs, more tobacco and pharma companies will extend their arms either by buying a e cig company or float their own.
Researches say there are ample opportunities for new players as more and more flavors of e cigs are found everyday.
During its infant days, e cigs were available only through e bookings. Even the buyers were very limited those days. But what made e cigs to jump out of e trade and occupy a place for itself in open market?
Answer is simple. More and more smokers started choosing e cigs and accepted it!
A survey on current e cig smokers is expected by the end of 2012. And trust me; I will be first one to write on the fast-growing-e cig smoking population!
Lets’s see one of the finest interview done of tobacco industry this year. Nicandro Durante, chief financial officer-BAT says that the size of tobacco alternative products (mainly e cigs) may account nearly 40% of BAT’s total revenue. BAT is currently the number two global tobacco company. It operates in 180 countries. http://www.ft.com/cms/s/0/c7ae8b88-0960-11e2-a5e3-00144feabdc0.html#axzz2DcjF5g4y
“The tobacco alternative products are growing fast. They shall dominate the market in next 20 years,” he opines.
And Mr Durante is a smoker! If not regularly, he confesses to smoke nearly 4-5 cigars a week. “If I want to quit, I will quit smoking,” he confidently says.