Tuesday, March 26, 2013

Electronic Cigarettes

http://www.economist.com/news/business/21573985-challenge-big-tobacco-vape-em-if-you-got-em

Electronic Cigarettes were never really considered a serious threat to major tobacco (cigarette) producers. Innovations in electronic cigarettes like vaporizing tobacco,etc are now attracting people's concerns and they can definitely be seen as a threat to cigarette producing giants. Advertisement about comparatively less harmful product is at its peak and since they are taxed lower compared to cigarettes,   in the coming years cigarette production can be expected to be stunt.

5 comments:

  1. I wouldn't be surprised if the electronic cigarette gains the largest percentage of the market share soon. The vapor is far more healthy for the consumers body and it also reduces the negative externality of second hand smoke in society and so these E-cigs may even gain non-smoker support too.

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  2. I agree that demand for E-cigs is definitely going to increase. The best part is that they can be used indoors and even on commercial air crafts. Hence one can take his/her required nicotine hit in the form of vapor (smoke) whenever they feel like it. The health benefits are an add-on.

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    Replies
    1. I agree, but considering the fact that us has a lot of cigarette production in virginia,etc, this might impact employment in major cig producing states.

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  3. Is this considered to be more healthy? "Vaping" is suppose to take some of the toxins out that are present in the cigarettes, but the tobacco portion is still present. I think this will be an interesting market to keep a tab on. If these new innovations do take off we can expect a sharp decline in the cigarette market.

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  4. I could see the E-cig has being healthier, but I don't know about it being healthy, or even good for you. The fact that it is better for you compared to regular cigarettes will definitely increase sales and probably new users, so they get the same feeling without the health costs. But I could imagine there will be a large portion of consumers who stay with cigarettes just based on brand preference, and product preference. Some consumers probably don't want to get used to a different product, and are happy where they are, even though it is very unhealthy.

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