Ecig Sales Show Promising Growth in Early 2015
While some critics allege that electronic cigarettes are nothing more than a passing trend, recent sales data tells a different story. According to Nielson data from March, convenience stores had a 51.6 percent increase in ecig unit sales. The only negative change was that ecig prices declined, but for the vaper, that’s actually good news. It’s clear that ecigs are here to stay.
Wells Fargo senior analyst Bonnie Herzog said the change in pricing is actually due to the change in what vapers are buying. Instead of buying the higher priced starter kits and cigalikes, many are now purchasing eliquids and tanks that they can refill. Herzog said the top selling ecig in convenience stores was Reynold’s Vuse. Lorillard’s Blu cigs were a close second while third place was a split between Logic and Altria’s MarkTen. In fifth place, NJOY also showed consistent sales.
“We are impressed with Vuse’s strength,” Herzog commented. She noted that Vuse has been priced quite a bit lower than other brands, which seems to add to the enticement for buyers. “We note Vuse’s pricing ($6.82) was 34 percent below category average of $9.12.” Overall, Herzog said ecigs are still going strong. “Smokeless tobacco dollar sales are strong despite tough competition,” she said.
Big tobacco also saw an increase in sales during March, with sales increasing by two percent. Fortunately, this marginal growth is no where near as impressive as the results from electronic cigarettes. It’s clear that smokers are starting to see the benefits of switching to vaping and many are choosing to forego traditional cigarettes and buy the tobacco-free ecigs instead.
Herzog believes spring numbers will continue to show industry growth. “We continue to expect strong manufacturer pricing in 2015, which should help offset broad volume declines and generate robust profitability and growth.”
It’s also important to note that these figures only account for convenience store sales. Many (if not most) vapers opt to buy their ecigs and eliquids in dedicated vape shops or online, where prices are often substantially reduced.
Have you noticed any growth in the ecig industry in your city?