38
TOBACCO BUSINESS INTERNATIONAL
JULY/AUGUST 2014
electric
ALLEY
F
ollowing the bouncing ball in
the e-cig/vapor world takes
some acuity, but consumer and
merchandising trends are beginning to
take shape for those willing to hone in.
Here are 10 learnings gleaned at May’s
Vapor World Expo in Las Vegas,Nevada:
1.
The estimated size of the total U.S.
vapor market is $2.5 billion, according
to Nielsen and Wells Fargo Securities.
This is currently divided into the
traditional e-cigs category, which
amounts to about $1.4 billion, and the
vapors/tanks/mods (VTMs) category,
which represents about $1.1 billion.
This estimation takes tracked channels,
non-tracked channels, and online sales
into account.
2.
C-stores reign supreme in traditional
e-cig distribution.Convenience retailers
are reportedly drawn to traditional e-cigs
for their “low maintenance” selling (see
C-Store Corner, p. 74). According to
the latest Nielsen estimates on May
10, 2014, Lorillard’s blu remains the
category leader in the channel with a 43
percent dollar share, Logic ranks second
with a 24 percent share, and NJOY is
third with an 11 percent share. But the
channel is also starting to look at the
vapor side; Mistic’s personal vapor item,
Haus, is already being distributed in
some c-stores.
3.
E-cig repeat purchases have sur–
passed trial purchases. Roughly half of
all e-cig sales are now repeat purchases,
according to Wells Fargo research.
“Many of our [retail] contacts noted
that there might not be complete
elimination of smoking combustible
cigarettes, but there is significant dual
use due to health concerns and the
ease of using e-cigs in public places,”
Quick Truths
Don’t blink—
the e-cig/vapor
category is
moving and
changing
rapidly. Here
are 10 up-to-the-
minute market
realities heard
and reported at
Vapor World Expo.
By Renée M. Covino
