The Federal Trade Commission’s (FTC) first-ever report on e-cigarette products reveals surging e-cigarette sales and advertising.
The report, which is based on industry data provided for the years 2015 to 2018, shows that total e-cigarette sales, including both disposable units and those using changeable cartridges, increased more than sixfold from $304.2 million to $2.06 billion in those three years alone. The sales of fruit and other flavored e-cigarette cartridges preferred by youth increased sevenfold over that time, and nicotine concentrations in disposable e-cigarette products also increased.
“The commission’s inaugural e-cigarette report paints a disturbing picture, especially with e-cigarettes driving an unprecedented increase in youth use of tobacco products,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection, in a statement. “The data show that this increase coincided with dramatic spikes in the market share of flavored products, higher concentrations of nicotine and an industry attempt to evade a ban on free sampling.”
The vapor industry has experienced growth after Covid-19 lockdowns sent many back to cigarettes.
By Timothy S. Donahue
After declines in 2019 and 2020, the vapor industry has grown 10-15 percent in 2021. Don Burke, senior vice president of Management Science Associates, speaking on a panel during the first day of TMA’s “From Chance to Change” webinar on No. 17, said that he expects the industry to continue its growth into 2022.
“Vapor cartridges were up by 18.5 percent. Over … 2019 going into 2020, we were seeing some declines in vapor. One of the things to keep in mind is at the end of 2019 was that illegal THC vaping [EVALI] crisis,” said Burke. “That turned a lot of people off of vapor, even though it was only an illegal product that caused the issues. No legitimate product caused any problems. It’s about a year-and-a-half now since that occurred … because of that, consumers are starting to forget, vapor is coming back.”
Burke said disposables, because they’re allowed to have flavors, were up 28.9 percent and all-in-one kit volumes are growing (up 2.9 percent). He said vape shop and tobacco outlet sales are also on the rise after many closed or limited hours due to the Covid pandemic. He said his research includes approximately 300,000 stores. It does not include vape shop sales.
“We’re looking at distributor to shipment retail data. In many cases, that’s important because a lot of the convenience stores and some tobacco outlets do not collect their data and, therefore it’s very difficult to get a clean read,” he said. “The convenience channel – because they were considered essential businesses in most parts of the US – managed to survive the pandemic and in fact, now are a larger percentage of stores in the US. Also, 71 percent of tobacco volume goes through convenience stores.”
Burke said pods for closed-pod systems (cartridges) are up 6 percent in the most recent quarter. He said that during the third quarter of 2021 disposables continue to have strong sales, rising by 21 percent and he expects those trends to continue. E-liquid distribution fell by 49.6 percent through 2020 and into current 2021 and sales fell nearly 15 percent, mostly due to recent regulatory action in the US.
Burke also said cannabis sales grew significantly during 2020 and into 2021, but he didn’t elaborate.
For more on this session from TMA 2021 read the next issue of Vapor Voice coming in mid-December.
A major vaping retailer in the UK is launching a new vape clinic service with a goal of helping to increase numbers of smokers quit. The move comes as VPZ vape shops announced a 165 percent increase in “New to Vaping” kit sales in the first week of re-opening following the relaxation of Lockdown measures.
Credit: VPZ
The uptake and demand for stop smoking services underlines and re-affirms VPZ’s recent calls for vaping stores to be classed as an essential retailer during the Pandemic, according to VPZ director Doug Mutter. “We are investing to help smokers quit and to support the country in its ambition to be a tobacco free nation by 2030.”
Following over a year of having no NHS stop smoking services available, the company has been inundated with smokers looking to quit since reopening its full estate of stores on 26 April, according to Mutter. The retailer has seen a huge demand for New to Vaping (NTV) kits since it reopened its 150+ UK stores, with an unprecedented demand for NTV kits in the first week.
“With access to local stop smoking services and vaping retailers massively reduced during lockdown, thousands of smokers have been left without any services to help them quit,” a press release states. “Since re-opening its stores to bring customers a Covid-secure retail experience, VPZ has faced record demand from smokers looking for expert advice and personalized support to help them make the switch.”
The quit clinic investment and recruitment drive are part of VPZ’s commitment to play its part in helping the UK achieve its ambitions to be a tobacco-free nation by 2030, set out by the Government in 2017. “VPZ is the UK’s leading vaping specialist and we are spearheading the fight against the nation’s number one killer – smoking,” said Mutter. “We are excited to be launching the Vape Clinic concept following strong demand and recognizing the need for an enhanced level of service since reopening our doors. The huge reduction in NHS stop-smoking services, through COVID-19 and local authority cuts have been devastating in the country’s efforts to reduce smoking rates.”
