Disposable e-cigarette market contracts


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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.

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