Electronic cigarette industry special report: As a huge space for development of tobacco substitutes

Ecig Battery industry special report: As a huge space for development of tobacco substitutes

The rapid development of electronic cigarette: Electronic cigarettes through several generations of development, has basically the same shape and traditional cigarette, tastes can achieve diversification, while the smokeless electronic cigarette tar, less harm to the human body. Electronic cigarette smoking habits to meet people while reducing the damage to the human body. Since 2012 the U.S. Supreme Court ruled against FDA banned the sale of electronic cigarettes, electronic cigarettes sold in the United States began, the United States often is the trend of the guide, is expected to electronic cigarettes as a fashion commodity would be welcome.
Electronic cigarette market is huge: expected 2013 global sales of electronic cigarette 300 million (equivalent to 60 billion cigarettes), accounting for the entire tobacco about 0.1%, calculated in accordance with growth of 100% in the coming years, to in 2015, the proportion of the entire cigarette electronic cigarette market is still only 0.38%, the electronic cigarette for smoking cessation or whether alternatives to conventional cigarettes, all have huge room for growth. Currently focused on sales of electronic cigarettes in the United States, once the markets in Europe, China and other regions of open, electronic cigarette sales will further increase.
Electronic cigarette price advantage is obvious: in the global cigarette prices only a few countries is lower than China, the electronic cigarette is currently in China with traditional cigarette prices were flat, while the American and European countries for tobacco control, levy heavy taxes on tobacco, the tobacco prices far higher than the electronic cigarette, for example, in Norway, a pack of Marlboro cigarettes ordinary price up 93 yuan, more than three times the price of electronic cigarette, from an economic point of view, more cost-effective electronic cigarette smoke in most countries.
Electronic cigarette battery market is small, it is difficult to attract short-term lithium giants to enter: Although the rapid development of electronic cigarettes, electronic cigarette batteries but price is not high, the price of each electronic cigarette battery at around $ 4, according to 2013 300 000 000 e-cigarette demand market calculations, the electronic cigarette battery market size of 1.2 billion yuan, the market size of the lithium in the whole accounting for about 1%, on the other hand the electronic cigarette battery manufacturing gross margin level is only about 20% of the market size and profitability from the point of view the recent electronic cigarette lithium battery industry giants are not available in large attractive in the short term will not enter this industry giant lithium, thus avoiding vicious competition in the industry may be, the electronic cigarette battery will maintain a stable gross margin level within a certain time.
Subject Company: Wei Li billion is the world’s largest manufacturer of electronic cigarette batteries, the first half of 2013 the company expects earnings growth between 50-55% in the fourth quarter of this year the company electronic cigarette battery capacity will reach 850,000 a day, will be alleviate the shortage of electronic cigarette battery situation to some extent, the new production capacity in 2014 all put out 85% of batteries are used in accordance with the electronic cigarette, capacity utilization was 85% in 2014 electronic cigarette company to reach 230 million of output branch, based on the 2012 growth will be further strides, which led to the company’s growth.
Risk Warning: Electronic cigarettes are still harmful to health, the effect is currently no data to support smoking cessation. Electronic cigarettes are still regulated by the FDA, the FDA issued a new policy to stop smoking electronic cigarette selling

Leave a Reply

Your email address will not be published. Required fields are marked *