The desire to lead a healthier lifestyle rings true in today’s culture, and to that end, the age old habit of cigarette smoking has taken a backseat to the growing popularity of smoke-free alternatives.
It is estimated that by the end of 2016, vapor product sales would have generated revenue of roughly $2.95 billion worldwide. And by the end of 2025 researchers project that e-cigarette users will account for 18% of the world’s population up from 12% in 2015, according to Occams Business Research & Consulting (OBRC) firm.
The U.S. held the largest market share of around 30% in overall revenue made from vapor products sold in 2015, with roughly 2,750,000 people using the reduced harm alternative, OBRC reports.
A number of vapor product manufacturers are investing large amounts of research and development in creating new technology within the vape industry. Large tobacco companies like British American Tobacco (BAT) has invested more than $580 million in the last three years developing new product, like the glo device, which heats tobacco to create an inhalable vapor that the company claims to be safer than cigarettes with 90% less toxicant emitted.
Philip Morris has developed the iQOS, which is similar to the glo in functionality, and is competing with the BAT device in test markets in countries like Japan, which will determine expansive product rollouts in the future depending on how well-received these devices are among adult users there.
The OBRC claims that Philip Morris invested about $2 billion on the iQOS device in the past 10 years.
This growing research and development by large tobacco companies, as well as the technological innovation and product releases seen on the small business level is increasing the growth of the global vapor product market. And despite regulatory oversight, researchers do believe that the vape industry will continue to grow as fewer people light up.
Chris Mellides is the Managing Editor of VAPE Magazine. A seasoned journalist, he has worked in all areas of the media industry since first getting his start in newspaper reporting ten years ago. Contact him at firstname.lastname@example.org.