According to a recent report by Journalnow, the market share and revenue of the e-cigarette industry in the United States continue to be eroded by illegal products, prompting the formation of a special task force by multiple federal agencies.
According to a convenience store report by Nielsen, e-cigarette sales for the four weeks ending on June 1st decreased by 15.7% compared to the same period last year. The report primarily covers large chain stores, and trends for small chain stores are inferred, so changes may not be immediately reflected in the report.
In the latest report, market share of R.J. Reynolds Vapor Co.'s popular product Vuse e-cigarette has once again decreased from 41.4% to 41.1%; while the second-ranked Juul has increased from 23.6% to 24%. Back in May 2019, Juul held a market share of 74.6% in the US e-cigarette market, but due to a series of regulatory measures and product concessions, consumer demand has dropped.
NJoy's market share in the e-cigarette industry has increased from 3.3% to 3.4%, making it the only major e-cigarette manufacturer in the United States to see an 8% sales growth in the past four weeks. In June 2023, Asiya acquired the third-largest e-cigarette company in the United States, NJoy, for $2.75 billion. This acquisition was made possible after Asiya sold its minority stake in Juul in March 2023 and obtained global licensing rights, clearing the way for the purchase of NJoy.
Fontem Ventures' blu eCigs, a subsidiary of Imperial Brands Plc, ranks fourth with a market share of 1%, remaining unchanged.
Part-time professor at the University of Ottawa Law School and author of numerous studies on e-cigarettes and health, David Sweanor stated that
Consumers are turning to unmeasured aerosol products (mostly unapproved illegal products on the market today) and nicotine pouches that are not measured by Nielsen.
British American Tobacco and Altria Group are both urging the Food and Drug Administration (FDA) to strengthen enforcement of "illegally" synthesized nicotine e-cigarettes in the US market. The two companies estimate that these synthetic products make up about half of the overall domestic e-cigarette market.
On June 11th, the U.S. Department of Justice and FDA announced the establishment of a special task force to address the issue of illegal domestic distribution and sales of e-cigarettes.
The participating agencies include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service, the U.S. Postal Inspection Service, and the Federal Trade Commission (FTC), with the possibility of other agencies joining the special task force.
The special task force will focus on several key themes, including investigating and prosecuting new criminal, civil, seizure, and forfeiture actions based on the Prevent All Cigarette Trafficking (PACT) Act, the Federal Food, Drug, and Cosmetic Act, and its amended version, the Family Smoking Prevention and Tobacco Control Act.
Violating these regulations could result in felony convictions, significant criminal fines, and civil fines, as well as possible seizure of unauthorized products.
FDA Tobacco Center Director Brian King stated in a press release that
Enforcing laws against illegal e-cigarettes is a multifaceted issue that requires a comprehensive approach.
ZYN is the best-selling nicotine oral product, with a year-on-year sales growth of 72.7% and annual sales totaling approximately $2 billion. ZYN leads the market with a 25.9% share, followed by Copenhagen from Altria with 23.8%, and Grizzly from American Snuff Co., a subsidiary of Reynolds, in third place with 16.9%.
Meanwhile, traditional cigarette sales decreased by 6.3% in the latest report, with Philip Morris USA down by 6.7%, R.J. Reynolds Tobacco Co. down by 6.9%, and ITG Brands down by 5.4%.
In the latest Nielsen report, Philip Morris maintained a market share of 50.9%, with their bestselling brand Marlboro holding steady at 46% of the overall market share.
Reynolds holds a market share of 33%, with the second largest brand Newport at 12.4%, followed by Camel at 8%, Natural American Tobacco at 3.5%, and Pall Mall at 3.5%.
ITG's overall market share is 8.4%. The seventh-ranked brand, Winston, maintains a 2% share, while Kool and Maverick hold the eighth (1.7%) and ninth (1.7%) positions respectively.
Notice
1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.
2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.
3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.
Copyright
This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.
This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.
