Vaping Market Expected to Grow in 2017, Despite Obstacles
In 2016, the vaping industry sales topped $ 4 billion, growing at an incredible pace when compared to earlier years. Cynics will be quick to point out that all that matters absolutely nothing now that most governments are trying to (over) regulate electronic cigarettes.
Should we all subscribe to such a bleak outlook?
According to Bonnie Herzog, managing director of tobacco, beverage and convenience store research at Wells Fargo Securities, there is no cause for serious alarm just yet. During her presentation at Tobacco Plus Expo (TPE) in Las Vegas, she predicted industry growth, despite the FDA’s deeming ruling which still causes large retailers to think twice about carrying and selling vaping products. Her forecast also states that vaping industry can expect around $ 10 billion in sales in 2020.
On the other hand, tobacco product sales are seeing record deceleration rates - 3.5 % decrease is Herzog’s prediction for 2017, which is almost double than what this industry faced in 2016. She noted that tobacco industry is ‘an industry in secular decline’ in which companies are struggling to grab as much business as they can since they are feeling the effects of this deceleration.
It’s great that experts still see a potential for growth in the vaping industry, even with everything going on in the United States and other parts of the world. However, it’s also slightly disheartening to think that these predictions could have been even better if not for the FDA.
Original post by Diane Caruana