With an ever-growing range of products on the market and a huge leap in media investment, 2014 is looking to be the year when electronic cigarettes become mainstream, meaning local retailers need to start taking them seriously.
The growth of electronic cigarettes has been nothing short of meteoric. In 2007 the technology existed, and there were around 1,000 users. By the end of 2013 this had grown to 1.3 million. Given a platform in the media last year given the debate over their classification, awareness has grown substantially and many firms have recently embarked on media campaigns to push this even further. By the end of last year it is thought the sector was worth £250m – and predictions suggest double digit growth this year. All of which is good news for convenience retailers, who must now consider e-cigs a must-stock item. It may not always be the case. In 2016 the products will be re-classified as medicinal products, which will change the market dramatically, and already manufacturers are planning for this change.
However, for now, local retailers should concentrate on a growing market with plenty of potential. Emma Logan, Co-Founder and Communications Director of JAC Vapour, says: “As the sector has become more recognised, we have seen a real shift from enthusiasts to mainstream users. We have also seen an increasing number of women entering the market.” The main selling point that e-cig manufacturers have clung to is that the products are claimed to be healthier than cigarettes. Logan adds: “Although advertising, media coverage and retail outlets have all played their part, we believe that the market will continue to surge in 2014 for one simple reason – electronic cigarettes offer smokers a truly viable, healthier alternative to tobacco cigarettes. “ JAC Vapour is just one of a huge number of companies entering the market place.
Another is Njoy, an American firm which has launched a TV campaign to push its brand. New listings announced last month include McColl’s, Londis and Premier. Njoy says that while many smokers want to stop using tobacco products, they still want the ‘experience’ of smoking. The company highlights Mintel research which suggests that almost two-thirds of smokers who use nicotine replacement therapy are looking to change to a more satisfying alternative. As well as increased awareness of e-cigs which offer far greater margins than tobacco products, there has been an improvement in quality, lending the sector more credibility.
The involvement of the major manufacturers in this burgeoning market is a further sign of this. So far, only BAT have brought a product to market – through a subsidiary company. Vype uses the latest technology to provide a lightweight electronic cigarette with a realistic soft tip, similar size and feel to conventional cigarettes.
Two product types are available – Vype disposable and Vype reload (re-chargeable) – in two flavours: Classic and Menthol (with the Classic flavour coming in two nicotine strengths: Bold and Regular). All products contain ECOpure, one of the purest e-liquids available, which is manufactured in the UK using high quality ingredients including pharmaceutical grade nicotine. At JAC Vapour, Logan suggests that the increase in quality of products will play an even bigger role. “Forget the basic starter kits or cheap disposable e-cigarettes this year, people will do their homework and look for brands that offer both performance and reliability. That means retailers will have to really focus on stocking and selling solid products if they want to build a loyal customer base and see continued growth.”
