Market analysts are showing huge potential for the future value of the vape market . But it seems they have forgotten the huge obstacles that are gradually appearing.
The global vaping market could reach $47 billion within ten years, according to a new market research paper released this week. It also predicts that the market will grow by double digits each year.
This study was prepared by Research and Markets, a financial reporting group that sells its research to corporations and investors. It’s hard to know how they came to their conclusions about the market’s growth unless you’re willing to buy a $4,200 report—but given the information in the executive summary, the analysis is likely Nielson’s. Nielson typically looks at sales in cigarette sales channels like grocery stores and gas stations.
“Despite the stringent policies and regulations governing the e-cigarette market, revenues from major regions will continue to grow at double-digit CAGR (compound annual growth rate) during the forecast period,” the press release said.
“In North America, with the US leading the market over the forecast period,” the paper added, “APAC will have the highest CAGR, accounting for over 27% of the e-cigarette market value by 2025.”
It could be. Or it could be that the FDA’s bills will completely destroy market growth by stifling innovation from independent companies. Independent companies account for more than half of the market in the United States, according to Wells Fargo’s Bonnie Herzog.
We know most vapers who quit smoking had more success with open system products like tanks and mods. So how do you know there are vapers who only regularly use e-cigarettes like cigalikes?
The idea that all open-system vapers will revert to the products originally sold by the companies that survived the bill is the most important consideration. This means that the biggest competitor for FDA-approved e-cigarette companies is a vast and elusive black market.
Is this report true?
The summary of the report reads like a rumor picked up from somewhere. Or that’s just how I feel. What about you? “Key players in the e-cigarette industry include Altria, Lorrillard, ShenzenSmoore Technology Limited, Kangertech, First Union, Kimree, British American Tobacco, CB Distributors, Fontem Ventures and Cigavette.”
Cigavette? I googled it, they exist. Do they actually influence market forecasts? Probably not. Are they a major player? Probably not. Does that mean this report is a hoax? Not sure, but if someone has $4200 to spare, we'll probably find out soon enough.
This article was published on Vaping360 by Jim McDonald and translated by The Vape Club
