Disposable e-cigarette market contracts

0

Photo: Shutterstock

NEW YORK – As the e-cigarette refill market bounces back, the single-use e-cigarette market has started to shrink as the U.S. Food and Drug Administration (FDA) cracks down on non-compliant market participants, Bonnie Herzog said.

Herzog, Managing Director at Goldman Sachs, based in New York, said in a recently released research report that the e-cigarette refill market represents nearly 74% of the total category and includes non-tobacco / menthol-flavored rechargeable cartridges and capsules that are FDA approved are . The one-way segment is closer to 23% of the category.

Dollar sales of single-use e-cigarettes declined about 16% in the two weeks ended September 25, Herzog said, citing data from NielsenIQ, Chicago. Herzog found that Puff Bar sales decreased 91% in dollar terms and dollar Bidi Stick sales decreased approximately 40%.

However, on a 2-year stack basis that looks at the sum of the growth rates over the past two years to offset volatility, US dollar single-use e-cigarette sales increased 458% for the two-week period.

The latest data reflects the continued crackdown by the FDA against the flavored single-use product category after the September 9, 2020, tobacco product application deadline (PMTA).

After September 9 of this year, one year after the application deadline, the FDA issued Marketing Denial Orders (MDOs) for many flavored electronic nicotine delivery systems (ENDS), including single-use flavored e-cigarettes. Bidi Vapor LLC, Melbourne, Florida, has already filed a lawsuit against the FDA and other agencies to contest the agency’s issuance of an MDO for its flavored bidi sticks.

Would you like the latest news at your fingertips?

Get the most important information from today’s convenience industry. Sign up to receive texts from CSP about news and insights that are relevant to your brand.


Source link

Leave A Reply

Your email address will not be published.