44
TOBACCO BUSINESS INTERNATIONAL
MAY/JUNE 2014
electric
ALLEY
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ever underestimate the steady
mobility of a tank. In the
e-vapor world, the vapor/
tank/open system sub-segment may not
have Big Tobacco behind it (at least not
yet), but it’s accelerating and driving the
next wave of e-vapor growth, says Wells
Fargo Tobacco Analyst Bonnie Herzog.
In fact, a recent Tobacco Talk survey
conducted by Wells Fargo predicts that
vapors/tanks will grow in 2014 at twice
the rate of the e-vapor category as a
whole (which includes disposable and
rechargeable e-cigarettes that come in
stick form, as well as personal vaporizers/
tanks), assuming vapors/tanks are not
hindered by FDA regulation.
The survey also supports the idea
that the recent traditional e-cig sales
growth deceleration identified in earlier
2014 research reflects that category
volume is fast moving toward vapors/
tanks.
$2.2 billion to $3 billion
The Tobacco Talk survey found that
the retail e-vapor market is much larger
than the $750 million captured recently
by Nielsen data—it’s more like $2.2
billion to $3 billion.
“The discrepancy is due to about 60
percent of e-vapor sales throughuntracked
channels,such as online and vape shops—
an estimated 5,000 [retail entities] in
the U.S.,” says Herzog. “On one hand,
this should ease concerns around e-cig
category growth deceleration, but on the
other hand, it highlights the pressures blu
e-cigs and the e-cig category are facing
from vapors/tanks.”
According to Wells Fargo, the average
vapor/tank consumer’s weekly spend
is about 30 percent less than that of
the e-cig consumer, which is also likely
contributing to the lower revenue and
decelerating growth of the overall e-vapor
category.
Tanks Come
Rolling In
The “open system”
tank category is
undeniably driving
the next wave
of e-vapor growth,
according
to the latest
industry research.
By Renée M. Covino
