NEW YORK – While cigarette sales volume slipped 0.4% worldwide last year, the global vapor industry nearly doubled in size, to $6 billion from 2013 to 2014, according to a report from Euromonitor International. CBS News reports that the research firm expects the industry to continue its rapid growth, unless potential regulatory and taxation issues slow the trajectory.
The United States accounted for about half of all global vapor sales in 2014, at about $2.8 billion in sales of e-cigarettes and e-liquids. But vaping’s popularity in Europe – and around the world – is not to be discounted, with Euromonitor reporting sales gains in 50 global markets.
The growth is fueled in part by the perception that vapor products are healthier than traditional cigarettes. Plus, the vapor wares aren't yet taxed at the same high rate, so they're significantly cheaper.
However, “the bombastic predictions for vapor's future could easily, well, vaporize if legislation brings about tobacco-level taxation," warned Zora Milenkovic, Euromonitor's head of tobacco research, in the report. She cited Italy and Portugal as markets that have already taken a hit since the passage of stricter regulations of the products.
Other hurdles include possible limits on tar levels, demands for child-proofing or bans on public vaping. Without restrictions, however, Euromonitor predicts the vapor market can reach more than $50 billion in 15 years.
And of course, the health benefits of vapor products are still up in the air. "While they may have a role to play in smoking cessation or reduction, their long-term effects on public health are not yet known," the European Commission said in 2014 when issuing new rules for tobacco products.
According to the CBS report, nearly 18% of American adults smoke cigarettes, down from 21% in 2005, according to the U.S. Center for Disease Control and Prevention. And about 10% of U.S. adults now use vapor products, according to a Reuters/Ipsos poll released earlier this month. It also found that smokers are using the alternatives as a supplement to traditional cigarettes but not making the switch completely.
CBS writes about a new area of the vapor market in the “heat-not-burn” products, which are ash-less and minimize smoke. Euromonitor forecasters expect to see 42% compound annual growth rate for this segment globally from 2014 to 2019.