E-cigarette Market in the US 2015-2019 - Expected to Grow at Around 33%

Source from:  BusinessWire 02/29/2016

The e-cigarettes market in the US is expected to grow at a CAGR of around 33% during the forecast period.

The increased desire among consumers to quit smoking tobacco is the primary driver for the growth of this market. For instance, according to the US government, approximately 480,000 people die in the country every year due to active smoking. E-cigarettes are considered a healthier alternative to tobacco smoking, and, therefore, are becoming popular among end-users.

The e-cigarette market in the US has many opportunities for mergers and acquisitions by large vendors who are aiming to enhance their market presence and market potential. Many vendors are expected to acquire small and domestic suppliers during the forecast period to increase their market shares, which will enhance their distribution channels and improve their market reach.

According to the report, the sales volume of traditional cigarettes has declined with an increase in the sales of e-cigarettes. The majority of the global players in the tobacco industry witnessed a decline in the shipment of traditional cigarettes in 2014. An increasing number of deaths caused by smoking-related cancers has propelled people to stop smoking traditional cigarettes.

Further, the report states that the price of high-quality e-cigarettes is increasing as a result of the increase in the prices of raw materials and the demand for good-quality e-liquids. The introduction of different flavors and new-generation e-cigarette devices are further expected to increase their prices in the future. Several vendors are trying to provide these products at low prices to gain market share. However, this will affect vendors' profit margins in the long run. Enditem