Fitch: Entry of Large Tobacco Companies Legitimizing E-Cigarette Market
The growth prospects for the E-cigarette market are compelling with the entrance of the large tobacco companies legitimizing product beyond the perception of a passing fad, according to a Fitch Ratings report.
E-cigarette sales estimates for the U.S. marketplace are reaching $1.5 billion in 2013, compared to less than $10 million in 2007. Demand, given mainly from current tobacco users, has essentially doubled every year since the first E-cigarette products were introduced in 2006. The U.S. remains the world's largest E-cigarette marketplace.
The large tobacco companies have introduced their own E-cigarette products, competing with a multitude of smaller companies. The tobacco industry is highly experienced at brand building to grow awareness of the category while expanding access and availability through an extensive retail channel.