| Share

Vaping Is Ending The Cigarette Industry

E-cigarettes were invented by business, not medicine...

E-cigarettes were invented by business, not medicine. But as more smokers make the switch, some health experts believe we’ve finally hit on something that could eliminate smoking for good. Electronic cigarettes have become a serious threat to traditional cigarette makers.

Many of you reading this article have switched away from smoking traditional cigarettes thanks to vaping, or some of your are about to make the switch and cigarette manufacturers are feeling the pinch.

As people are now switching over to vaping on a daily basis the result is. A 16 per cent drop in share prices for the Marlboro manufacturer, which Altria called their “worst day in a decade”.

Early last year CNBC Mad Money host Jim Cramer stated that “we saw the market’s sudden recognition that the cigarette industry seems to be in serious trouble, disrupted by the rise of vaping”.

The cigarette industry has been falling year-on-year in sales volume for some time now, but in a very predictable manner. Generally the volume sales of cigarettes fall between 3 to 4 per cent each year, which is offset by manufacturers with a price hike.

Wells Fargo Securities estimated in 2013 that sales of electronic cigarettes would surpass traditional cigarettes in 2022, but from all the information we have it looks like this could happen a lot earlier.

Talking regionally, Australia had the biggest drop at 18.3 per cent. Eastern Europe was down more than ten per cent, and the European Union was down 6.7 per cent. The only gain was made in South and Southeast Asia, up 6.1 per cent. When one-third of worldwide cigarette sales are made in China, that’s not difficult to understand.

If you have any questions or would like further information on vaping

please send us an email or follow our upcoming articles.