E-cigarettes are a contentious issue. On one hand, they are being heralded as the saviour of a flagging tobacco industry, potentially bringing business to areas that have traditionally relied on income from cigarette production facilities.
On the other hand, many legislative bodies are working hard to restrict their use, banning their sale to minors and outlawing them in public places.
Japanese officials are even looking into the potential health impact of e-cigarettes after the devices were found to contain high levels of formaldehyde.
But love ‘em or hate ‘em, the Global E-Cigarette Market is still taking off, posting a CAGR of 24.14 percent from 2015-2019.
E-Cigarettes: Quit Smoking Quick Fix, or Major Health Hazard?
At the moment, the major concern for most e-cigarette vendors is how to lure traditional tobacco smokers away from their favourite vice, and get them to pick up vaping.
Market vendors are spending a good chunk of change (upwards of US$40 million, in some cases) on advertising and promotional strategies targeted at widening their consumer base. A lot of advertising has centered on targeting traditional cigarette smokers with claims that e-cigarettes are the easy way out of a pack-a-day habit.
This has increased uptake of e-cigs among consumers, which has boosted their popularity. While they were once harder to come by, and typically found online, more and more retailers are now carrying e-cigarettes in store.
The entry of leading cigarette manufacturers into the market is also expected to increase the number of distribution outlets worldwide. For instance, the partnership of V2 Cigs and National Tobacco in 2013 gave V2 Cigs access to more than 35,000 retail outlets in the US. Similarly, the acquisition of Blu eCigs and SKYCIG by Lorillard in 2012 gave the companies access to more than 13,000 Lorillard outlets. Imperial Tobacco, which recently acquired Lorillard’s E-cigarette business division from Reynolds American, has already established distribution channels and outlets worldwide.
Unknown Health Effects Causing Concern
However, the growing popularity of e-cigarettes seems to be some cause for concern among regulatory bodies and healthcare professionals. No proper research has been conducted on the negative effects of e-cigarettes on human health, and there is a serious absence of clear information regarding how much nicotine and other chemicals are actually being inhaled when someone smokes an e-cigarette.
While pundits are making big claims regarding the use of e-cigs as a quit-smoking tool, the actual effectiveness of e-cigarettes in helping people quit has not been fully studied. This is leading regulatory bodies to prohibit ads claiming that e-cigarettes are a healthier and safer alternative to tobacco, until they are presented with solid scientific evidence to support such claims.
Stringent Government Regulations Being put in Place
The unknown health effects of e-cigs are prompting many governments to impose strong regulations of their sale and use.
In August 2014, the WHO urged the regulation of e-cigarettes and their contents and a complete ban on their indoor use, advertising, and sale to minors. The organization recommended regulatory measures that include prohibiting e-cigarette makers from making health claims until they provide convincing and reliable scientific evidence that e-cigarettes help people quit smoking. It also suggested banning e-liquid solutions with fruit, alcohol-drink, and candy-like flavors and removal of e-cigarette vending machines from all locations worldwide.
Many countries have heeded the WHO’s concerns, and e-cigarettes are now banned in major economies such as Brazil, Japan, and Indonesia. Additionally, the governments of Poland and India are considering imposing a complete ban on their sale, and several Canadian provinces have also seriously limiting their scope.
In the US, the FDA introduced regulations to ban the sale of e-cigarettes to people under 18. In addition, it has introduced a regulation indicating that vendors must provide health warnings on e-cigarette packets, and it is expected to introduce more stringent regulations during the forecast period.
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