How E-Cigarettes are Becoming Big Business

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As thousands of smokers ditch tobacco in favour of vapour-filled electronic cigarettes, there has never been a better time to invest in the e-cigarette marketplace. Ever since the products were first introduced into the UK and U.S market in around 2008, the e-cigarette industry has been growing steadily ever since.

The Fastest Selling Products in Supermarkets

E-cigarettes were first developed around a decade ago by Chinese scientist Hon Lik, who patented the modern e-cigarette design in 2003. The product was introduced to the Chinese market in 2004 and marketed as an aid for smoking cessation. In the UK alone, e-cigarette sales have risen to over £100m and the products are now the fastest selling items in UK supermarkets.

In 2014, market research firm Nielsen announced that e-cigarette sales have increased by almost 49.5% in the past 12 months alone with no less than 17.3 million of the electronic devices sold, there are an estimated two million users and the market is growing rapidly.

An Industry with an Entrepreneurial Mind-set

Fronted by entrepreneurs like Wayne Marler from online e-cigarette shop Sparks E-Cigs, the e-cigarette industry is a market that offers many business opportunities. Wayne says:

There’s a definite entrepreneurial spirit in the e-cigarette industry at the moment. So far, larger companies have held back in investing in the marketplace but that looks set to change soon. My advice to anyone looking to invest in the industry would be to do it now.’

Until recently, larger corporations have remained in the shadows of the industry, while entrepreneurs have been at the forefront of the trend. However, as more and more acquisitions are taking place, those looking to successfully stake their claim in the marketplace should do so quickly.

According to Tobacco Control, there are 460 brands of e-cigarettes worldwide in counting. Some of the most popular include Blu E-Cigs, Nicolites, E-Lites and 10 Motives. In a relatively young but nevertheless, ever-growing industry, new technology is playing its part in developing e-cigarettes with complex microprocessors that can monitor users’ behaviour and provide them with useful data about their vaping habits.

Investors from Different Industries

The e-cigarette industry is an ideal marketplace for tech investors to expand their portfolios and profit from a market that looks to continue to develop for quite some time. Given the industry’s positioning as being a healthier alternative to tobacco products, we predict that it won’t be long before investors from the health and fitness industry show an interest too. Even David Sweanor, former advisor to the World Health Organisation (WHO) on tobacco control said in an interview with E-Cigarette Direct that:

Seldom is there an offer to become a billionaire while saving millions of lives. I think there will be takers.’

Due to the sudden rise in the popularity of e-cigarettes, regulators are still playing catch up and new research is being conducted all the time into the health benefits of the products. Bearing this in mind, investors will want to keep a close eye on the industry moving forward as new legislations are imposed.

To find out more about the e-cigarette industry and to keep up to date with the latest e-cigarette news, visit Sparks E-Cigs e-cigarette blog.

 

How do you see the e-cigarette industry as a potential market for investment? What do you think the future holds for the industry? We’d be interested to hear your thoughts.

 

Image credit – http://the-best-electronic-cigarette-review.com/

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