Electronic cigarette Market, also known as e cigarette, has become a commodity in demand and also a topic of everyday discussion. The government like the public and corporations is in a state of dilemma regarding the various aspects of the usage of e-cigarette; its viability as a safer option to the conventional cigarette, the varied rules and regulations imposed by authorities in different countries, and the market scenario from business perspective.
While smoking the conventional cigarette is known to result in various health hazards; the electronic cigarette has not been approved of as a less dangerous option. E-cigarettes do not contain tobacco, but some studies show that they may contain other carcinogens (substances capable of causing cancer). Various surveys indicate that an alarming number of non-smokers have taken up to vaping (smoking e cigarette), considering them to be safe. Most of these surveys find an increasing uptake by teenagers, which posses a major challenge for the policy makers.
The global regulatory scenario of e-cigarettes is quite mixed. Some governments have made provisions to sell e-cigs at pharmaceuticals, while a complete ban has been imposed in certain countries. The Brazilian government has put a total ban on the use, purchase, selling and advertising of e-cigarette. Though in the U.K., vapor smokers are free to use their e-cigarettes wherever smoking is allowed.
But among all this the business community has taken up e-cigarettes with open arms. There has been a sequence of expansive projects by tobacco industry leaders, and mergers among the smaller players. Electronic Cigarettes Holding AG, the leader in online retail in Europe, is expecting to triple its earning to $15.53 million in the year 2015. Robin Roy Krigslund-Hansen, CEO at Electronic Cigarette Europe was quoted saying: “We have a very attractive business model with the highest profit margin and EBIT in the global industry, as such we have a second to none organic growth financed entirely by our own profit.” The company currently enjoys a customer base of over 50,000 in Europe and it is likely to grow by over 60% within the next 3 months, as new countries are introduced, taking the total number up to 25, as per the company’s press release.
It remains to be seen what steps are taken up by the authority to regulate the usage of e-cigarettes. But amid all the chaos and confusion surrounding this controversial product, industry analysts at BIS Research predict the sector to grow at rapid rates. The adulation for smoking cigarettes might never cease to exist and e-cigarette might just be the future.
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