According to Bloomburg News, researchers are saying that after almost five years of stable growth of electronic cigarettes, sales are beginning to decline, especially in the months of May and June.
There’s clearly a willingness to try the product, the problem is the technology is just not good enough. If it’s not good enough in terms of replacing a cigarette, smokers are going to stay with the cigarette.
Reports say that sales of e-cigs and refillable vaporizers had more than doubled to $1.7 billion in 2013, about 1.7% of a roughly $100 billion market for these nicotine products. The first signs of dwindling sales came this year. According to data from a Chicago researcher, sales of packaged electronic cigarettes slipped 2.9% in the month of May compared to this time last year. Sales had declined even more in the month of June.
Lorillard Chief Executive Officer Murray Kessler is saying “it’s normal for a brand new category to have some sort of ups and downs”, after being asked about the decline in sales.
The researchers are determining results through e-cigarettes located in gas stations and retail chains. The researchers claim that sales have declined for the packaged electronic cigarettes that have been known highly for being a “beginner” e-cigarette, but has always lacked power seen in other more advanced devices. What’s really going on is, these smokers will either begin by purchasing one of these packaged e-cigarettes and crave more performance, which then leads them away from retail chain packaged e-cigs and closer to advanced devices that hold larger performance perks and that are more-so sold in dedicated vapor shops. On the other hand, sales for these packaged e-cigarettes could be on the decline because as the industry has grown, information about electronic cigarettes are becoming more wide-spread and easily visible to the public, thus leading them to the more performance packaged e-cigarette right out of the gate.
Agreed, the “cig-a-likes” as many call them, may in fact show a decline in sales, but on the advanced portion of the industry, the one that has created a culture to say, is steadily booming just as it has for years – and I don’t need a researcher to know that.