There are concerns that the e cigarette growth will be limited by high taxes and the fore coming regulation. But there are signs that even this will be a good thing.
Austin, TX -- (SBWIRE) -- 10/03/2013 -- The rapid rise of the e cigarette industry has given rise to the increased amount of people that now prefer to vape rather than to smoke. With 2013 sales at an estimated $1.7 billion which is up from the 2012 sales of $500 million. There have been estimations by many sources that this is the next natural step in the smoking phenomenon, and according to analysts at DigitalSmoke.Org there are going to be more e cigarette smokers than tobacco smokers within the next decade. This growth has also increased the chances of electronic cigarettes being taxed in the same manner that tobacco products are getting taxed at state, federal and local level. Up to now they are operating in a regulation free environment and only one state, Minnesota, subjects them to more than ordinary sales taxes.
Even the e cigarette brands are expecting that the taxing regime is going to be prevalent and this was confirmed by Miguel Martin, president of e cigarette manufacturer LOGIC Technology who said “There’s an expectation there will be some level of taxation.” There is also a high expectation of tighter federal regulation within the industry as well. As a result there have been no resistances of the major manufacturers on these expectations, in fact it is seen that the increased regulation of the e cigarette may help reduce competition from unruly competitors who are selling their products online.
There is hope and expectation that the expected taxes will not be so high that they will reach the high rates that are levied on tobacco cigarettes in New York City. In 2013 the best e cigarette revenues according to market analysts are estimated revenue is expected to be $1.7 billion, compared with the more than $80 billion for filtered cigarettes. But as consumers are rapidly changing over to smokeless cigarettes as they discover they can make huge savings both in terms of savings and possible health savings.
At least one report found that the e cigarette were as effective as nicotine patches in reducing cigarette use. And now the agency is working to create a set of proposed regulations to ban the sales to minors and other marketing methods as well as studying the health effects of the e cigarettes and e cigarette liquid.
DigitalSmoke.Org is a leading online consumer product review panel that specializes in e cigarette reviews. It does not make any comments or pre-judgments that may favor or give an unfair advantage to a specific brand or manufacturer. It also specializes in reviewing e cigarette industry related news as well to better inform the reader.
For further information see here.
Copyright © 2005-2013 - SBWire, The Small Business Newswire - All Rights Reserved - Important Disclaimer
Contact Us: 888-4-SBWIRE (US) - 920-593-5640 (International)