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  3. > E-Cigarettes: Big Tobacco moves in for the kill, but could profits disappear in a puff of smoke?

Introduction

In our update on the e-cig market, much has changed in the space of two years. The market has exploded in size and revenue and smokers are increasingly likely to have tried an e-cig or be thinking of using one. However there have also been some new regulations and changes that are shaping the market and producers are having to adapt. Big Tobacco now dominates the industry.

Features and benefits

* Learn what an e-cig is, what their variants are and how they are used.
* Explore the nature of the industry and how it is developing in the UK and US.
* Learn what medical experts think about the products and how regulation in the industry might develop.
* See how Big Tobacco has invested heavily in the market and who owns what within the industry.
* Examine how the market is likely to develop and just how big it might become.

Highlights

Electronic cigarettes (e-cigs) mimic the shape and style of cigarettes and are designed to produce a similar sensation to smoking, while delivering the same nicotine hit. The designs, however, are very different
The electronic cigarette and the tobacco industry are inextricably linked as future e-cig users are likely to be drawn directly from the tobacco industry. The tobacco industry is facing a difficult time currently as governments continue to restrict and limit their business actions in the name of protecting the consumer.
Our first case study on electronic cigarettes showed it was uncertain just what Big Tobacco was going to do about the electronic cigarette industry. Some players had made steps to enter the market but others seemed tentative. Now, Big Tobacco is flying into the industry snapping up key brands and releasing new ones.

Your key questions answered

* What is an e-cig and who makes them?
* Are they safe to use and could they be safer than traditional tobacco products?
* Why does Big Tobacco want a piece of the action?
* How is the traditional tobacco market doing and has it been affected by e-cig sales?
* Could regulation cripple the market and if so would this be a good idea?

Table Of Contents

E-Cigarettes: Big Tobacco moves in for the kill, but could profits disappear in a puff of smoke?
O VERVIEW
Catalyst
Summary
WHAT IS AN ELECTRONIC CIGARETTE?
History of the market began in China but exploded in the West
The product works through vaporizing a nicotine liquid
Product format is becoming increasingly user friendly
Variants include both premium and low cost
Disposable versus rechargeable versus third generation devices
THE TOBACCO INDUSTRY
Decline in volumes
Increased regulation is restricting Big Tobacco
Lawsuits are continuing to hit Big Tobacco hard
Despite this the market is still growing in value
BIG TOBACCO HAS GOT INVOLVED IN A BIG WAY
Lorillard currently dominates both the US and UK markets with BLU and SkyCig
RJ Reynolds is moving to be a big contender
Altria and Phillip Morris International have a new product en route
British American Tobacco looks to medicine market
Imperial Tobacco deals with boots
Japan Tobacco buys a premium product
China National Tobacco has yet to move
THE SPREAD OF THE E-CIGARETTE
E-cigs in the USA have exploded
E-cigarettes sales in the UK growing rapidly
ARE E-CIGARETTES SAFE?
NICE reports in the UK show cautious but optimistic language
Conclusions about the product's safety cannot be reached yet
World Health Organization seems undecided on the matter
Some medical experts urge caution
E-cigarette producers are careful about their claims
CONCLUSIONS
Big Tobacco is now dominant in the industry
The actual health impact of the product remains ambiguous
Regulation will have a huge part to play yet
APPENDIX
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Further Reading
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