e-Cigarette Sales Seen Rising 24.2% Per Year Through 2018 In US

Posted by: : Paul EbelingPosted on: June 11, 2014 e-Cigarette Sales Seen Rising 24.2% Per Year Through 2018 In US

e-Cigarette Sales Seen Rising 24.2% Per Year Through 2018 In US

LO, MO, RAI

Americans may be giving up smoking tobacco by the tens of millions, but many are turning to a popular alternative, e-Cigarettes aka e-Cigs.

Sales of e-Cigs in the United States, estimated to now be a $1.5-B market, are set to grow 24.2% annually through Y 2018, according to new projections from Research and Markets. Hence,  Big Tobacco’s expansion into the sector.

The number of traditional cigarettes sold in the United States has fallen 29.6% since Y 2004, according to the data. That is the result of education campaigns and countless bans on smoking in public places in towns and cities nationwide.

Some on Wall Street expect e-Cigs to surpass the tobacco cigarette market within 10 yrs, as Big tobacco companies looks for a new source of growth.

Lorillard (NYSE:LO) bought the market-leading blu e-Cigarette brand inY  2012, and then, last October, bought SKYCIG, a UK-based e-Cig business. Reynolds American (NYSE:RAI) last year introduced its VUSE digital vapor cigarettes in Colorado and is rolling the product out nationwide in Y 2014. Altria (NYSE:MO) started selling its MarkTen e-Cigs in Indiana last year and is introducing it to additional states this year.

e-Cigs are slim, reusable tubes with an electronic inhaler delivery system that mimics tobacco smoking. Some consider them less harmful to one’s health because they produce vapor, which has no tar, rather than smoke and see them as a helpful smoking cessation aid.

Part of the appeal for these companies is that e-Cigs are not regulated yet, and there are no excise taxes on them, unlike tobacco cigarettes.

But that could change,  the US Food and Drug Administration (FDA) proposed rules that would ban the sale of e-Cigarettes to minors and require companies to list ingredients, and many lawmakers and advocacy groups are calling for more scrutiny.

HeffX:LTN Analysis for LO: Overall Short Intermediate Long
Bullish (0.33) Neutral (0.21) Bullish (0.42) Bullish (0.36)
HeffX-LTN Analysis for MO:  Overall Short Intermediate Long
Bullish (0.47) Very Bullish (0.56) Bullish (0.44) Bullish (0.42)
HeffX-LTN Analysis for RAI:  Overall Short Intermediate Long
Bullish (0.36) Bullish (0.29) Bullish (0.29) Very Bullish (0.50)

Stay tuned…

HeffX-LTN

Paul Ebeling

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.
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