Margins tighten as vaping industry grows

The U.S. e-cigarette market will hit $5.5 billion this year, a 25 percent growth rate from last year, according to a Wells Fargo report A crowded industry has meant increased competition and interest from the industry e-cigarettes aim to replace Companies like Imperial Brands, which once had almost 50 percent US market share, have responded to increased e-cigarette competition with products that have different strengths of nicotine and more flavors. As the industry has grown, margins have tightened. The standard bottle size for liquid nicotine has grown from 15 milliliters to 120 milliliters, while decreased production costs have driven e-cigarette prices down. A 2017 U.S. surgeon general report found the average price of a single disposable e-cigarette went from $17 in 2010 to under $9 in 2014.