Once thought of as a niche product, electronic or “e-cigarettes” and vaping products
have taken the tobacco industry by storm. E-cigarettes come in both a disposable or
rechargeable form with the look and feel of a more traditional cigarette. Vapor products differ in that they offer increased customization with the varying heat settings, e-liquids, oils and various herbs. Multiple public reports have e-cigarettes surpassing traditional tobacco sales within the next six to ten years if growth rates continue to climb. Due to the lack of Food and Drug Administration (FDA) regulation, e-cigarette year-over-year growth declined from 2010-2012 (Exhibit 2) due to a large influx of products resulting in overall market saturation. However, growth rates in 2013 picked up again as big tobacco companies entered the market with new product launches or mergers and acquisitions.