‘Big Tobacco’ eyes E-cigarettes

e-cigarettes could expand by 7,500%

The development of electronic nicotine-delivery systems (ENDS), or E-cigarettes, is arguably the most disruptive innovation in consumer products over the past century and the market potential is substantial. Today, the global market stands at just over US$3bn in annual revenue, which puts ENDS’ market share at a mere 0.5% of the US$670 billion global cigarette industry. However, estimates suggest that the potential market for ENDS could eventually expand to US$225 billion in annual sales, nearly 75 times greater than today.

ENDS attracted roughly 250 firms to the playing field by 2012 and, unsurprisingly, explosive consumer demand is drawing the attention of larger corporations. We expect market consolidation to accelerate as ‘Big Tobacco’ becomes more comfortable with the regulatory environment.

David Sealy,  Director, The Boston Company Asset Management

Source: The Boston Company Asset Management

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