How Much Market Share E-cigarettes Have in Big Tobacco industry?

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Business Insider reports the share of e-cigarettes and highlight some factor behind very low market share.

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How Much Market Share E-cigarettes Have in Big Tobacco industry?

  1. 1. Share of E-cigarettes Compared to Big Tobacco Market
  2. 2. As per a recent published Business Insider article by David Adelman, a Morgan Stanley Analyst, alleges that in spite of their universal awareness and over 50% of smokers already giving it a try, so far the electronic cigarettes have been able to capture only about 1% of the total cigarette industry volume in the U.S. The primary reason behind Adelman’s findings is the inability of electronic cigarettes to satisfy the expectations of the consumers. The global awareness and trial by smokers, that e-cigs has achieved within a few years is truly remarkable, but the high rate of trial and rejection is identified by Adelman as the reason behind the failure of the product to capture more, as it was earlier thought to be. In his article, Adelman finds a higher rate of trial and rejection not surprising. Most e-cigarettes that have been given a try by regular and committed smokers are either cheap or substandard. The product is hardly capable of providing a satisfying smoking experience, that can result in a transition, and it is absolutely no wonder that they are rejected after a single trial. Though Adelman finds out the reason of rejection, but he doesn’t deal with any particular or specific shortcoming that can prevent a transition except for the issue of battery life. Though there are many market analysts with a view that in the next 10yrs, e-cigarettes can very well surpass the conventional cigarette industry, but Adelman seems to be a little less enthusiastic about its future. For him, electronic cigarettes no doubt have the potential, but it will still need a lot more time to achieve the desired results. He found that electronic cigarettes are certainly bringing down the gigantic numbers of conventional cigarette smokers, but the margin is just nominal or even negligible. There is little doubt that consumers are interested in e-cig, but at the same time, the cheap and affordable products that are currently available are far from being satisfactory. However, it is not only the quality that Adelman has found is lacking. The current generation of e- cigarettes also don’t meet the expectations of their performance, branding, and their familiarity perspective. Though Adelman has not gone through the causes of rejection apart from the battery life, but his article offers a good insight in the industry and also its requirements. With improvements made in certain departments better days can surely be expected ahead for e-cigs, in years to come. Smokers can truly expect some satisfactory alternatives to their smoking addiction of traditional tobacco cigarette.

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