Thursday, April 25, 2013

What Difficulties E-cigarette Industry Will Face in Upcoming years?

Have you heard the news? No. of e-cigarette users reached to 21% from 10% in 2011. Every new beginning that creates difference or try to establish a different way and if that connects directly with revenue, It must get involved in oppositions by big industry player who currently rules the market.
As E-cigarettes have introduced a new paradigm towards smoking and presented a different and more harmless way of smoking, it has faced and will face difficulties caused by many potential factors including big tobacco and political communities.

Taxing on E-cigarette:

As FDA denies approving e-cigarette as a smoking cessation product, it will come under “Tobacco Products” and if the growths of e-cigarette users continue for years the way it has been growing now, there is a possibility that the government adds an extra tax on e-cigarette as other tobacco products.
As of now, there is a minor tax imposed by the government compared to tobacco cigarettes. Yet, taxing on e-cigarette can become a great source of revenue which may encourage the government to tax on e-cigarette equally in future.

Ban due to Low Quality Brands:

As per recent data, revenue of the e - cigarette industry gets doubled in 2012 compared 2011. It is one of the most lucrative industry niches for establishing a business and increasing a customer base. There is also remarkable growth has been marked in no. of smokers who switched to e-cigarette. Due to this, there are no. of people have started their own business and selling e-cigarette at much cheaper rates. These cheap e-cigarettes don’t pass through quality manufacturing standard and may cause serious health issues or incidents.
Hence, e-cigarette communities and associated have released a quality standard for manufacturing, still there is no defined way to stop low quality brands from circulating their low quality e-cigs.

Ban on Advertising Even If It Doesn’t Contain Tobacco

As of now, e-cigarettes brands are allowed to sponsor any events, able to advertise online and on radio and retail store advertising. But the days are not far when they will be forced to restrict the entire advertising and marketing medium that tobacco brands are restricted to advertise.
This can impact on the circulation and introduction of E-cigarette as “better Smoking Alternative “towards smokers.

Risk of over Consumed Nicotine:

It is true that E-cigarettes are 100% safer alternative to traditional cigarettes yet as it insulates nicotine in the form of vapor, If someone gets too addicted to e-cigarette and start smoking it frequently than regular smoke, there is  the risk of diseases and health problems, caused by high consumption of nicotine in body.
All above reasons can be used as excuses for government or communities to impose a ban on e-cigarette and many countries have already restricted selling of e-cigarette even if the selling of traditional tobacco products are allowed to do so.                   

1 comment:

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