Cramer: Vaping is decimating the cigarette industry—and it could get even worse
- “Mad Money” host Jim Cramer addresses the recent pain in cigarette manufacturers’ stocks and shares his outlook on the tobacco business.
- Cramer tracks how electronic cigarette makers like Juul Labs are stifling business at traditional cigarette makers.
Full Answer
Is vaping the future of the tobacco industry?
The rise of vaping has certainly put a huge tent in the gigantic tobacco industry, but many of the giants in this industry are learning to adapt and evolve with the times. It is a positive that so many people have been able to quit smoking and it will be interesting to see what unfolds over the next few years.
Why are companies investing in the e-cigarette industry?
The companies have primarily invested in e-cigarettes as it is expected to be an effective alternative solution for tobacco consumption. However, the industry has a presence of various small players that offer efficient vaping devices and e-liquids, thereby acquiring a large customer base.
Why e-cigarettes and vape devices are gaining popularity?
The growing emphasis on adopting safer alternatives to smoking is anticipated to drive the adoption of e-cigarettes and vape devices over the forecast period.
What is the global e-cigarette and vape market size?
The global e-cigarette and vape market size was valued at USD 18.13 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 30.0% from 2022 to 2030.
How profitable is the vaping industry?
The answer is simple – the demand is increasing alongside the number of businesses in the industry. Many of the shops are enjoying average success, while some get the biggest slice of the cake. The average revenue of a vape shop can go around $26,000 with top earners making $39.000 per month.
Is there a correlation between vaping and cigarette use?
Nicotine in any form is highly addictive. Vaping, using nicotine-laced products, can become a tenacious and expensive habit, and kids might not stop there. Blaha says there's evidence that young people who vape are more likely to go on to use illicit drugs and tobacco products such as cigarettes.
Has vaping hurt the tobacco industry?
Cramer: Vaping is decimating the cigarette industry—and it could get even worse. “Mad Money” host Jim Cramer addresses the recent pain in cigarette manufacturers' stocks and shares his outlook on the tobacco business.
Is vaping a growing industry?
The e-cigarette & vape market is expected to witness a compound annual growth rate of 30.0% from 2022 to 2030 to reach USD 182.84 billion by 2030....Report AttributeDetailsRevenue forecast in 2030USD 182.84 billionGrowth rateCAGR of 30.0% from 2022 to 2030Base year for estimation2021Historical data2017 - 202010 more rows
Is vape healthier than cigarettes?
1: Vaping is less harmful than smoking, but it's still not safe. E-cigarettes heat nicotine (extracted from tobacco), flavorings and other chemicals to create an aerosol that you inhale. Regular tobacco cigarettes contain 7,000 chemicals, many of which are toxic.
Does vaping age you like smoking?
Though e-cigarettes don't contain tobacco and many of the chemicals found in cigarettes, they do contain some, including nicotine, which causes premature aging and wrinkles.
What are the benefits of vaping over smoking?
10 Benefits Of Vaping vs SmokingIt's significantly better for your health. ... Vaping is much cheaper than smoking. ... E-cigarettes are a really effective way to help you quit for good. ... Second-hand vapour is not as dangerous as second-hand smoke. ... Vapour doesn't linger like cigarette smoke.More items...•
What are the benefits of vape?
Benefits of vaping Vaping can help some people quit smoking. Vaping is usually cheaper than smoking. Vaping is not harmless, but it is much less harmful than smoking. Vaping is less harmful to those around you than smoking, as there's no current evidence that second-hand vapour is dangerous to others.
How big is the e cig market?
The U.S. e-cigarette & vape market size was estimated at USD 6.1 billion in 2020 and is expected to reach USD 7.4 billion in 2021....Report AttributeDetailsMarket size value in 2021USD 7.43 billionRevenue forecast in 2028USD 40.25 billionGrowth RateCAGR of 27.3% from 2021 to 2028Base year of estimation20209 more rows
What is the future of vape industry?
The worldwide E-cigarette and Vape market is expected to grow at a booming CAGR of 2022-2030, rising from USD billion in 2021 to USD billion in 2030.
Why has vaping become so popular?
Experts say part of the reason for the surge in use in such a short time is the evolution of the devices themselves. "We used to say that cigarettes are the most effective way of consuming nicotine, but e-cigarettes have replaced them," said Dr.
Where is vaping most popular?
Since their introduction vaping has increased in the majority of high-income countries. E-cigarette use in the US and Europe is higher than in other countries, except for China which has the greatest number of e-cigarette users.
How many puffs of a vape is equal to a cigarette?
10 puffsTypically, manufacturers advise that 10 puffs on your vape are about the same as 10 puffs on your cigarette. They further speculate that 10 puffs are all you take on one cigarette. Of course, this varies based on how big your puffs are, how strong your vape device is, and how much nicotine you are using.
How much nicotine is in a vape compared to a cigarette?
An average tank uses about 3ml of eliquid, if you vaped the whole tank in one session you would be consuming around 36mg of nicotine, which is the equivalent of around 4 average strength (8mg nicotine) cigarettes. This is a crude comparison though, as there are many variables included.
How many cigarettes are in a vape?
The basics of vaping and nicotine amount in Disposable Vapes A disposable vape with a 2ml tank (the legal max size in the UK) with a 20mg nicotine or Nic Salt, contains 40mg of nicotine in the entire disposable (2ml x 20mg). This is why most disposables are suggested to be the equivalent of a pack of 20 cigarettes.
What are 5 risks of vaping?
Vaping has been linked to lung injury.Rapid onset of coughing.Breathing difficulties.Weight loss.Nausea and vomiting.Diarrhea.
Is vaping in decline?
While it is true that there are those that vape who are not ex-smokers, it is evident that the vast majority are, which means that the cigarette industry is in decline. The smoking ban in the UK came into effect just over 10 years ago and there are now 1.9 million fewer smokers in Britain which shows the lowest smoking rates ever recorded. There are now nearly 3 million Britons using e-cigarettes from places like VIP and sales are expected to exceed £2 billion by 2020.
Is the vaping industry in decline?
With the vaping market rapidly growing in popularity at home and overseas and fewer and fewer people smoking, it would seem that the tobacco industry is in decline. This is not strictly true, however, as there are still a lot of smokers in the UK and overseas — particularly in countries like China and India. Not only this, but many tobacco industry leaders are now buying out e-cigarette companies and benefiting from this shift in public attitude towards smoking.
What is the difference between vaping and tobacco?
One major difference from vaping and tobacco is vaping’s ability to incorporate child friendly flavors, like peanut butter cup or candy apple, into its offerings. Tobacco was long since forbidden from marketing to children, so products like candy cigarettes and flavored cigarettes beyond menthol have disappeared from the market.
Can you sell vapes online?
While cigarettes and associated tobacco products are technically available for online sale, in practice sellers are generally violating various local and state laws, and therefore don’t sell online.
How much will the e-cigarette market grow in 2025?
Conversely, the global e-cigarette market is predicted to see a 20.8 percent CAGR by 2025.
When did Hon Lik start selling e-cigarettes?
Font Size: The e-cigarette market is still relatively new. It was not until 2003 that Hon Lik released his original e-cigarette after watching his father pass from smoking-related illnesses. The following decade and a half have seen rapid growth in investment, development and market value.
How much has Juul increased in 2018?
Juul alone has seen an 800 percent increase in 2018 and takes up a majority portion of the US e-cigarette industry. The UK is adopting e-cigarettes faster than any other nation with more than 3 millions regular vapers, around half of which have stopped smoking entirely.
How much does a 20 pack of cigarettes cost in New Zealand?
In New Zealand, they’ve steadily been increasing the price of cigarettes; some 20-packs now cost more than $25 NZD ($16.90 USD). They are also looking at making vaping more accessible, since New Zealand smokers typically come from lower income areas.
How many people die from second hand smoke?
Tobacco products kill more than 7 million people a year, and not just the people using them. Secondhand smoke causes around 890,000 of those deaths annually. Add to that the study that every cigarette takes 11 minutes off your life, the research proves time and again the negative health implications of combustible tobacco.
What is Juul's net worth?
Taking over a massive 74 percent of the US e-cigarette market and with a current net value of $16 billion, they’ve since signed a deal with Altria.
How many chemicals are in cigarettes?
The statistics keep rolling in from the likes of Cancer Research who have looked into the 7,000 chemicals in cigarette smoke and the amount of cancers they cause. The National Health Service in England has explained how every part of your body is affected by smoking.
Why did tobacco companies start a non profit organization in 1988?
For instance, a 2001 review of leaked industry documents published in the American Journal of Public Health showed how tobacco companies set up a non-profit organisation in 1988 to fund scientific research that would contradict the link between second-hand smoke and cancer.
How safe are e-cigarettes?
Both VPA and the African Harm Reduction Alliance say they remain confident in PHE’s conclusion that e-cigarettes are at least 20 times safer than traditional cigarettes.
How many years of life lost by e-cigarettes?
In fact, they found e-cigarette use in 2014 would lead to about 1.6-million years of life lost in the US alone. Egbe explains: “If the industry is so concerned about their customers, they should reduce the amount of nicotine in cigarettes.”
What is e-cigarette smoke?
E-cigarettes are devices that allow users to inhale solutions that usually contain nicotine in a colourless liquid such as propylene glycol – an additive typically found in food and cosmetics, the United States Centres for Disease Control explain. This solution is heated in the hand-held machines and produces a vapour, which is why smoking e-cigarettes is sometimes called “vaping”.
What is the new tobacco control bill?
The national health department’s new tobacco control Bill proposes stiff regulation for e-cigarettes and their traditional counter-parts, including advertising restrictions, plain packaging and public smoking bans.
Does vaping help with cancer?
Some scientists are arguing that, just as clean needles help drug users to avoid infections, vaping can help cigarette smokers to steer clear of health risks such as cancer by reducing how much they smoke.
Which country has the most progressive e-cigarette laws?
South Africa’ s tobacco and vaping lobbies have lauded the UK’s regulations for e-cigarettes as among the most progressive in the world.
When did the FDA regulate vaping?
The agency gained the power to regulate tobacco products in 2009, when then-President Obama signed into law the Family Smoking Prevention and Tobacco Control Act. But at that time, e-cigarettes weren’t terribly popular, and they were left out of the FDA’s regulatory rules. The agency didn’t finalize a rule for regulating vaping devices—which heat and aerosolize nicotine e-liquids, hopefully providing a less-dangerous version of a traditional cigarette—until 2016. At that point, the agency informed companies with products already on the market that they would have to retroactively put together premarket tobacco product applications (PMTAs) to ask for permission to keep selling them in the U.S.
When did vaping come out?
E-cigarettes have been sold in the U.S. since 2007. Why is the FDA acting now?
How many high schoolers vape in 2020?
Then there are the impossible-to-ignore youth vaping numbers. As of 2020, about 20% of U.S. high school students said they had vaped in the past month, most often choosing products—like Juul’s—that use pre-filled e-liquid cartridges. That’s actually down from the 27.5% who said so in 2019—perhaps a reflection of pandemic isolation and tighter regulations on e-cigarettes, among other factors. In 2019, the Trump Administration raised the minimum age of tobacco sale to 21, and in 2020, banned the sale of e-liquid cartridges in all flavors except menthol and tobacco, unless and until they receive FDA authorization.
What does the FDA decide about e-cigarettes?
The FDA’s decisions will technically come down to whether each e-cigarette product in consideration is “appropriate for the protection of public health” —the agency’s standard for assessing whether it has a net positive or negative effect on the nation’s public health. Crucially, the agency will assess each product’s potential effect on the entire U.S. population, not just adult smokers.
Is Juul a teenager product?
Juul has repeatedly denied that it purposely targeted teenagers and says its product is meant only for adult smokers. In 2019—apparently anticipating action from the FDA—Juul discontinued the sale of all flavors except menthol and tobacco. That year, it also introduced a new age-verification system in retail stores, and suspended almost all of its U.S. advertising. “While millions of adult smokers have converted to our products from cigarettes, we will only be trusted to provide alternatives to adult smokers if we continue to combat underage use, respect the central role of our regulator and build on our shared commitment to science and evidence,” a Juul spokesperson said in a statement.
Can vaping go back to smoking?
On the other hand, vaping industry representatives and pro-vaping researchers warn that adult smokers may go back to deadly traditional tobacco cigarettes if the FDA clears the market of popular e-cigarettes. “To date, the singular focus of U.S. policies on decreasing youth vaping may well have reduced vaping’s potential contribution to reducing adult smoking,” 15 past presidents of the Society for Research on Nicotine and Tobacco wrote in a recent American Journal of Public Health article.
Is vaping a tobacco product?
(If nicotine is lab-made and not derived from actual tobacco, it is technically not a tobacco product, Vapor Salon and others argue.) “They made it a game of chess with all of our pieces already captured and expected us to play along and be happy about it,” Vapor Salon wrote in the post.
Sweet
The tobacco and vaping industries add sweet flavorings to their products that are designed to attract young people. Flavors like chocolate, cotton candy, fruit punch, candy, banana, apple pie, strawberry, and banana – among thousands of others – entice youth while also disguising the taste of tobacco.
Cheap
To encourage impulse purchases by adolescents – and to create future, long-term customers – the tobacco and vaping industries price their products cheaply. Some vaping “starter” products have been sold for as little as $1.00 each with coupons.
Easy To Get
Cheap tobacco and vaping products are easily available to young people. They’re sold in many places including convenience stores, corner stores, and gas stations.
What is the market for vaping in 2020?
North America dominated the global market with a share of over 40% in 2020. The extensive presence of major industry players such as R.J. Reynolds Vapor Company; Philip Morris International Inc.; and JUUL Labs, Inc. is anticipated to drive the regional market growth. Social media platforms are being used extensively for selling e-cigarettes and vaping products. The young population has largely adopted vaping devices as a safe alternative to tobacco, which, in turn, is estimated to boost the adoption of these products. However, the current ban on some e-cigarette flavors including fruit and mint flavors in the U.S. to restrict underage vaping in the country is expected to hamper the growth of the market in the region to a certain extent.
What is the market share of e-cigarettes in 2020?
The retail store segment accounted for the highest market share of over 80% in 2020. E-cigarettes were initially sold in retail outlets such as vape shops and gas stations. These stores helped users to choose from a wide variety of devices and e-liquids. Moreover, vape shops enabled users to try and test these devices before making ...
What is the purpose of Juul Labs marketing campaign?
embarked upon a marketing campaign in January 2019 to educate adult smokers about the ill effects associated with traditional combustible cigarettes and encouraged them to avoid the same and switch to e-cigarettes and vape devices. Such marketing initiatives are anticipated to drive market growth over the forecast period.
What are the flavors of e-cigarettes?
Additionally, various types of flavors such as menthol, tobacco, fruits and nuts, and chocolate are available in the market, which is attracting a large number of customers. These flavors emit aromas when used in an e-cigarette or a vape device. Additionally, the increasing cost-effectiveness of these devices has further enhanced customer adoption and is expected to drive market growth over the forecast period.
What is the market share of rechargeable devices in 2020?
The rechargeable segment accounted for the highest market share of over 40% in 2020. The adoption of rechargeable devices is expected to increase as they tend to be affordable in the long run and eliminate the need to re-purchase supplies such as cartridges. Furthermore, customers making DIY e-liquids need not purchase pre-filled cartridges. Rechargeable devices can be used for a longer duration by switching the cartridges containing e-liquid. Moreover, seasoned vapers particularly find it economical to purchase rechargeable e-cigarettes and vapes, which is expected to increase their adoption.
Where are e-cigarettes imported from?
Given that most of the e-cigarettes are imported from other countries such as China, customers find it convenient to purchase e-cigarettes in bulk quantities via online platforms, which is anticipated to drive the Asia Pacific regional market growth. The Europe market is anticipated to register considerable growth over the forecast period. The health bodies in the region are providing acceptance to e-cigarette and vape from vendors such as British American Tobacco Plc’s Vype and Imperial Brands Plc’s Blu in the region as it is a better alternative to tobacco smoking is anticipated to drive the market growth in Europe.
Is there a ban on mint flavor e-cigarettes?
However, the current ban on some e- cigarette flavors including fruit and mint flavors in the U.S. to restrict underage vaping in the country is expected to hamper the growth of the market in the region to a certain extent.
Why are vape mods and e-cigarettes so popular?
E-cigarettes and vape mods usage are rapidly increasing because these devices don’t include any tobacco. Most of the U.S. population is considering these devices as a gateway for quitting smoking. Some of the population is shifting to an e-cigarette and vape mod as an alternative to smoking.
What is electronic vape?
Electronic cigarettes and vape mods, which are an alternative to tobacco products, have been gaining popularity . These sophisticated mechanical devices are designed to deliver the same addictive nicotine, which is in tobacco cigarettes, without the harmful effects of tobacco smoke.
What is rechargeable cigarette?
A rechargeable cigarette is a battery-powered vaping device, which can be reused and refilled. These devices also have interchangeable cartridges, due to which users can try a wider variety of flavors. The modular devices segment is anticipated to register the highest growth over the forecast period.
What is the vape mod segment?
The vape mod segment dominated the market and accounted for more than a 51.0% share of the global revenue in 2020. Increasing demand for customized mods is expected to propel the segment growth over the forecast period. With these mods, customers can automatically control temperature levels. With this flexibility, users can control things, such as temperature, power, as well as vapor production.
Is smoking a health concern?
Health concerns related to smoking have considerably increased in the past few years as individual organizations and governments are treating this issue with high priority. Increasing awareness about health concerns is anticipated to propel the market growth over the forecast period.
Is vaping safer than smoking?
Numerous studies conducted by medical association states that e-cigarettes and vape mods are safer than traditional cigarettes. Also, the market growth is being characterized by the increasing awareness among the young population. Moreover, vendors' focus on customizing options as well as continuous development in the new products is expected to fuel the market growth over the forecast period. Furthermore, the cost-efficiency of these devices has also increased customer acceptance.
Impact on Smoking
Tobacco Industry Still Afloat
- With the vapingmarket rapidly growing in popularity at home and overseas and fewer and fewer people smoking, it would seem that the tobacco industry is in decline. This is not strictly true, however, as there are still a lot of smokers in the UK and overseas — particularly in countries like China and India. Not only this, but many tobacco industry leaders are now buying out e-cigarette …
Sales History
- There has been a predictable nature to the cigarette industry in recent times with sales consistently falling by around 4 per cent each year, which saw cigarette companies raise the price in order to compensate for this. While previously this may have worked for them, this is no longer the case due to the sheer number of people that are now making the switch. In order to succeed…
Is Vaping Safe?
- While it is good news that so many people have moved away from cigarettes to vaping, there is still some uncertainty over just how safe vaping is. There have been concerns over the technology itself, as well as if it encourages non-smokers to take up vaping, which could then lead to conventional smoking. There are definitely concerns over the long-term effect of vaping, but the …
Taking Advantage of Strategies That Tobacco Can No Longer Use
Borrowing Tobacco’s Playbook
- One major difference from vaping and tobacco is vaping’s ability to incorporate child friendly flavors, like peanut butter cup or candy apple, into its offerings. Tobacco was long since forbidden from marketing to children, so products like candy cigarettes and flavored cigarettes beyond menthol have disappeared from the market. While the FDA did claim the ability to start regulatin…
Distancing from Tobacco
- One crucial way that the vaping industry is disrupting tobacco is by distancing itself from its predecessor product. On the surface, the two products seem very similar: each is designed to deliver the drug nicotine through inhalation. But vaping has worked hard to make it very clear that its benefits are dramatically different than those of tobacco. Some of its claims include: 1. That i…
Online Sales
- One huge benefit for vaping products is the ability to sell online. While cigarettes and associated tobacco products are technically available for online sale, in practice sellers are generally violating various local and state laws, and therefore don’t sell online. Vaping regulations are much looser, however, and customers can buy a wide variety o...