Member Article

The Rise of E-Cigarettes: Threats and Changes for the Tobacco Industries

A landmark review published in 2015 by the Public Health Research team concluded that E-cigarettes are 95% less harmful than tobacco and have the potential to help smokers quit. These statistics are backed up by the fact that the use of E-cigarettes in the UK has risen to 2.6 million. Almost all of the users were ex-smokers with a reported 1.3 million continuing smoking tobacco alongside normal cigarettes whilst attempting to stop. However, the results from a recent survey created by ecigreview have stated that only 66% of cigarettes smokers felt that e-cigarettes were a healthier alternative.

The reduction of the numbers of smokers shows us just how much of a threat e-cigarettes are currently posing to the tobacco industry. As the report has already shown, 1.3 million tobacco user have kicked the habit opening up a whole new industry of e-liquids and vapour culture. As combustible cigarette sales decline, tobacco companies who traditionally have had much power and leverage over legislation are feeling the squeeze.

Big brands such as British American Tobacco (BAT) are one of the biggest tobacco companies to react to the growth in e-cigarettes by attempting to expand their interests into the vaping market. With the vast sums of money available to the BAT, they have been able to invest in expensive marketing campaigns in an attempt to grab their own corner of the market. This is problematic to other tobacco companies who are unsure of moving towards vaping and e-cigarette markets due to the huge drop in profit margins in comparison to tobacco products. They are also unsure as to the legitimacy of the health benefits and the confusion about long-term health warns from some sources.

It has been suggested that big tobacco companies who are involved with vaping and e-cigarette manufacturing are actually pressurising government health organisations to regulate e-cigarettes more harshly. Although this would seem counter-productive, we have to look back at Altria’s (producer of Marlboro Cigarettes) very same move in the early 90s. By applying pressure on the FDA (Food and Drug Administration) in order to regulate cigarettes more effectively, small and medium size tobacco companies found the restrictions too much of a financial burden and consequently fell away from the pack. The big brands were able to take the hit and consequently absorb the smaller/medium size brands. With extensive pressure in both the US and the EU upon regulations of the e-cigarette market, many smaller/medium size vaping companies have accused the big corporations of much the same move.

Big tobacco companies have stated that their reasoning for wanted stronger regulation is because it is looking out for the safety of their clients who have changed to e-cigarettes in the belief that it is a healthier alternative.

“Our stated goal is to get to e-vapor leadership, to have the strongest brands in the marketplace,” said the Altria spokesman. However when asked about the pressures placed at the feet of small businesses. “I don’t know how they run their businesses and what it would cost them to meet those requirements.”

Most anti-tobacco campaigners argue that e-cigarettes should be regulated. However, most believe that due to their ability to help smokers quit, they should be lightly regulated and not with heavy hands. It is difficult to understand just how e-cigarettes are affecting the tobacco industry. One thing that is sure however is that e-cigarettes are helping to move people away from tobacco smoke, which has universally been accepted as a step in the right direction.

This was posted in Bdaily's Members' News section by Kat Kynes .