According to sources from TPE (Tobacco Plus Expo) 2017 held last week in Las Vegas, the tobacco industry is witnessing a record decline, while the vape industry is still growing steadily.
Bonnie Herzog, managing director of tobacco, alcohol and convenience store research at Wells Fargo Securities LLC, projects a maximum decline of 2 to 2.5 percent in 2016 and 3.5 percent in 2017. “This is a rare decline for the industry,” she said in a speech at the fair.
Regarding Phillip Morris International (PMI) and British American Tobacco (BAT), Tobacco Talk’s response “seems that both major tobacco companies have no interest in creating any more trouble at this time,” adding that the tobacco maker is trying to “seize new business opportunities” as cigarette sales continue to decline.
The vape industry has stabilized
When discussing vaping, they realized that the industry was expanding from just e-cigarettes to include non-combustible products and other smoking cessation products.
According to Herzog, most consumers are still “concerned” about these products, and with the latest FDA regulations, retailers are also nervous. Still, she predicts the industry will grow. Herzog predicts sales will reach $4.4 billion in 2017, up from $4.1 billion in 2016, and by 2020, that number will reach $10 billion.
Well-founded predictions
Considering all the challenges the industry has faced, these positive forecasts have brought relief and hope for the future. Smokefree Pennsylvania CEO Bill Godshall commented on Herzog’s forecast on the ECF forum, saying that so far he has found her predictions to be accurate and consistent.
This article was published on Vapingppost by Diane Caruana and translated by The Vape Club
