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  3. > US E-Cigarette and Vapor Markets: Days are Numbered for this Billion-Dollar Industry

Electronic cigarettes and vaping products have taken the tobacco industry by storm. Multiple public reports have e-cigarettes surpassing traditional tobacco sales within the next six to ten years if growth rates continue to climb. Due to the lack of Food and Drug Administration (FDA) regulation, e-cigarette year-over-year growth declined from 2010-2012 due to a large influx of products resulting in overall market saturation. However, growth rates in 2013 picked up again as big tobacco companies entered the market with new product launches or mergers and acquisitions. The following article discusses major issues in this area, as well as a market analysis, drivers/restraints, timeline of this market in progression, and market revenue forecast.

E-Cigarette and Vaping Markets
Once thought of as a niche product, electronic or “e-cigarettes” and vaping products have taken the tobacco industry by storm. E-cigarettes come in both a disposable or
rechargeable form with the look and feel of a more traditional cigarette. Vapor products differ in that they offer increased customization with the varying heat settings, e-liquids, oils and various herbs. Multiple public reports have e-cigarettes surpassing traditional tobacco sales within the next six to ten years if growth rates continue to climb. Due to the lack of Food and Drug Administration (FDA) regulation, e-cigarette year-over-year growth declined from 2010-2012 (Exhibit 2) due to a large influx of products resulting in overall market saturation. However, growth rates in 2013 picked up again as big tobacco companies entered the market with new product launches or mergers and acquisitions.

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US E-Cigarette and Vapor Markets: Days are Numbered for this Billion-Dollar Industry

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