Electronic Cigarette Bandwagon

In the USA and around the world the bandwagon is getting full.  A recently article on Mashable makes claim the electronic cigarette industry has already produced $2 billion in retail sales this year alone.  The industry is taking off all over the country and attracting Big Tobacco and investors alike.  Some very big names such as Sean Parker, R.J. Reynolds, Altria (Parent company of Phillip Morris) and Peter Thiel.

In recent news all the major Tobacco companies have announced entering the market or large scale launches of new e cigarette brands such as Altria’s MarkTen, R.J. Reynolds Vuse e-cigarette.  This join the likes of Lorrillards Blu E cigarettes and V2 e cigs which already known and growing e cigarette brands in the US.  All of these companies are jockeying for position and large scale campaigns like V2 E cigs which plans to launch in the Czech Republic soon.  All of them are also scrambling to take advantage of opportunity to grab market share before regulation is finalized.

Some of the most interesting investment comes from Silicon Valley, most notably Sean Parker and Peter Thiel. Parker knows for founding Napster and his involvement in Facebook finds his way into electronic cigs by way of Njoy and american electronic cig manufacturer but being part of a recent $75 million dollar investment. Included in that $75 million is investment from Thiel who is famous for starting PayPal and funding the anti smoking movie “Thank You for Smoking”.

This is a strong indicator for a few reasons:

1. Being that investment is being attracted out of Silicon Valley, which is know for software and tech.  Thrown in the names of founders like Parker and Thiel and it makes you wonder is it already too late to jump on the bandwagon.  These investors are know for pioneering new products and markets and have been very successful with a track record to prove it.  Adding these 2 to the bandwagon will ultimately raise eye brows and attract more investors to the wagon.

2. Thiel jumping on board is just as interesting considering he funded “Thank you for Smoking”.  The movie depicts a Tobacco Lobbyist and how he spins cigarettes and tries to curb the lung cancer and cigarette connection. The point being all the research studies are funded by Big Tobacco themselves.  So Thiel funding this movie is a clear statement he is against Big Tobacco and smoking.  So does him investing in electronic cigarettes mean he as well thinks e-cigs are a safer alternative to smoking?

There is growing believe that electronic cigs are not only safer than tobacco cigarettes but do not cause lung either.  There currently is not long term studies or proof that this is true so it is a bold statement by these investors stating their believe in electronic cigarettes by investing early on. Is this all about money and opportunity or really a new healthier alternative to cigarettes.

The next big wave to come in the electronic cig industry is regulation and enforcement. With all the recently money being thrown at e cigs will this mirror classic Big Tobacco practices of funding and skewing thier own research?  Ultimately some of these companies will spend a good portion of that money to fund studies on long term effects of electronic cigarettes and links to cancer and second hand smoke.  However electronic cigs already have a different feel than tobacco cigarettes by society.  Electronic cigarettes are they just the next generation of cigarette or a new tech product and healthier alternative?

 

 

Electronic cigs are the next big thing in the US

Thats right tobaccos is out and e cigs are in all across the USA.  From a new product invented in China only a few years ago electronic cigs have grown in to a serious threat to tobacco.  By vaporizing liquid nicotine electronic cigarettes offer an alternative to traditional smoking.  Cigarette smoking has been banned just about everywhere in public and e cigs are replacing them.  However now electronic cigs have come up in regulation talks and individual states are already banning them in certain places like buses and restaurants.

Electronic cigs have already been banned in the US on most airlines but it had not stopped growth in popularity.  Now you can buy electronic cig starter kits and disposable e cigs in your corner shops like 7-11 and Walgreens.  Major US tobacco firms are starting to produce electronic cigarettes and see them as a transition to the future from tobacco products.

Not only are people all over America using electronic cigs to cut back or quit smoking non traditional smokers are picking them up too.  In cities like New York and Los Angels electronic cigarettes are becoming sheik and celebrities have been spotted everywhere smoking them.

Since there is no burning and carbon release like cigarettes e cigs jsut produce water vapor and is not supposed to cause second hand smoke.  Add that to different colors and flavors of nicotine liquid people are thinking of it more like hookah than smoking.  Electronic cigarettes are growing as a trendy thing to do and a social activity like smoking hookah.  Especially in clubs and bars, people are lining up to try the newest and best products and there are new flavors being produced everyday.

Very soon there could very well be electronic cigarette friendly coffee houses or smoking lounges like hookah lounges.  This is something cigarettes could never accomplish, people would never gather around just to be social and smoke. While smoking can be a social thing in the USA and there are a lot of social smokers electronic cigarettes are a different dynamic.

They started as an alternative to smoking, a way to cut back or quit.  But now they are becoming their very own thing not just a alternative to cigarettes.  I expect electronic cigs to keep growing in popularity and demand.  More and more people are switching over everyday and finding new products and benefits as opposed to smoking.  They combine technology and smoking which has always been considered “cool” but as smoking has become taboo electronic cigs are picking up the slack.

Cigarette Usage In The United States

According to the Centers of Disease And Prevention, 43.8 millions of people in the USA smoke.  The number equals to 19.0% of all adults.  21.6% of males smoke and 16.5% of females in the United States smoke.

12.9% of the smokers are Hispanic.

It is reported that every day four thousands of kids under the age of 18 year start smoking and every day, 1000 kids become regular smokers.

Of the 43.8 million smokers in the United States, 69% of them want to quit completely and 52% of them actually tried to stop.

 

 

American Airline On E Cigarettes

American Airline prohibit the use of e cigarettes on their planes.  They do not prohibit you from bringing them on board but you can’t puff on them while you are sitting in your seat.

The rule to allow people to smoke electronic cig is up the airline.  There is no federal ban in place so it is best that you contact the airline that you are going to fly on to find out their policy.