For several decades now, you could easily depend on the ace cigarette companies like Philip Morris International which constantly showed massive big profits and their products are probably everything apart from being healthy and good. Till the last couple of years, the volumes of cigarettes would decline by 3-4% on a per annum basis and the tobacco companies could boost the price of the cigarettes. This worked for several years and this kept the profit of the tobacco companies alive.
Nevertheless, if you take a look at the bigger picture, you will see that the rise of vaping e-cigarettes has already changed the status quo in the world of smoking. If you take into account just America, the total number of vape shops has quadrupled since the year 2014, as per recent researched by Wells Fargo. They also added that the e-cigarette industry burgeoned from $1.8 billion in 2014 to $4.5 billion in 2017. Online vape shops like buyv2cigs.co.uk are even making it easier for people to get access to vape pens and electronic cigarettes.
The impact that the vaping industry has on the entire tobacco industry can be calculated in the result of recent earnings. Did you know that the shares of Philip Morris International plummeted by 18% post the release of its earnings report for the week? In fact, Philip Morris International missed all its revenue estimates at $6.95 billion, as against the $7.05 billion that was expected. Their total volumes were 2.3% lower and even Marlboro fell 7% overall.
If you thought that it was only the United States of America which witnessed huge declines in volumes of cigarettes, you were wrong. The European Union was also down by 7%, volumes in East Europe fell by 9%, the Far East and Australia witnessed the biggest declines in volumes of cigarettes and there were also plummeting reports in Latin America and Canada too.
Over the last 3-5 days, the stocks of tobacco were also bent like never before and they were spindled and mutilated by the realization that e-cigarettes have become one of the most serious threats to the traditional cigarette making companies. There is a direct relation with the sudden and sharp rise in vaping. In the US, 38% of the high-school people and 14% of the middle-schoolers have already tasted what vaping is. On the other hand, in the UK, 40% of the smokers had switched to vaping to quit tobacco smoking.
Though there is still a debate regarding the health risks of vaping, at the current moment, it has been proved that vaping is much less harmful than smoking as they contain fewer chemicals. So, this way, vaping is gradually killing the cigarette industry.