- Stringent FDA regulations are just one barrier the e-cigarette market in the US is facing over the next four years.
London, 02 June 2014: E-cigarettes are gaining popularity in the US, with the market posting a strong CAGR of 24.22 percent from 2013-2018, according to TechNavio, the independent tech-focused global research firm.
Factors such as the desire of many consumers to quit smoking, an increase in e-cigarette distribution outlets, the low cost of the technology and heavy expenditure from manufacturers on advertising and promotion are driving stateside sales.
However, according to the newly-published TechNavio report, there are a few significant challenges hampering the e-cigarette market in the US from experiencing more aggressive growth.
Stringent Government Standards and Regulations
Recently, the US FDA came up with regulations to ban the sale of e-cigarettes to people under 18 years of age, and put forward a proposal for regulations that would require vendors to provide health warnings on e-cigarette packets. Further, the organization is expected to implement even more stringent regulations to govern the e-cigarette market in the US during the forecast period. Such stringent government regulations and standards will greatly affect the market revenue.
“Though the e-cigarette market has certain challenges, it shows immense potential and is expected to grow during the forecast period due to some positive trends. Changes in lifestyle and preferences, as well as an increase in mergers and acquisitions will spur on healthy growth in this market,” says Faisal Ghaus, vice president of TechNavio.
“When the drivers and emerging trends are taken into account, the future of the e-cigarette market in the US certainly looks promising.”
To determine these market scenarios over the next 3-4 years, TechNavio analysts have conducted in-depth analysis of the impact of market drivers, challenges and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.
If you are interested in more information on this topic and our upcoming research on the E-Cigarette Market in the US please send an e-mail to media@TechNavio.com.
- Follow us on Twitter @TechNavio
- Like us on Facebook
- Follow us LinkedIn
- Connect with us on Google+
