Large companies may soon dominate the U.S. vapor market while e-cigarettes produced by smaller companies may disappear, according to new research by ECigIntelligence.
Analysis of FDA premarket tobacco product applications (PMTAs) shows that more applications for simpler disposables and cigalike devices were submitted than applications for open systems. According to ECigIntelligence, the simpler products usually come from large companies while the open systems usually come from smaller businesses.
Only about 30 open system brands have filed PMTAs, implying that 85 percent of open system brands will be removed from the market, even if all 30 filed PMTAs are approved.
“This may indicate the discouragement nontobacco companies face when applying for PMTA approval,” said ECigIntelligence Managing Director Tim Phillips. “The PMTA process can be a grueling one for nontobacco companies without sufficient financial means or knowhow. And if smaller brands are to become less prevalent in this category, consumers may soon only have the option of a few models provided by a handful of big companies.”