A Power Shift In Big Tobacco – Seeking Alpha

Whether we want to admit it or not, vaping is a burgeoning industry worldwide and shows no signs of slowing down. Philip Morris International (NYSE:PM), Altria Group (NYSE:MO), and British American Tobacco (NYSEMKT:BTI) face an increasing threat from e-cigarettes and vaporizer brands. These devices and e-liquid makers are escalating in popularity at a far greater rate than conventional tobacco products in youth markets. As popularity spreads and education about smokeless tobacco products continues, these products will increasingly eat into big tobacco’s smokeables market share. Bis Research recently conducted what was intended as a “conservative” market research survey that estimates that:

The global e-cigarette market was estimated to be worth $8 billion in 2015, and is expected to grow at a CAGR of 19.34% throughout the forecast period to become a $46.9 billion industry by 2025.

Declining Sales In Smokeable Tobacco Products

As the e-cigarette and vape industry grows, smokeable tobacco product sales are slowing for companies such as Altria Group Inc. and British American Tobacco. In its most recent Q3 results, Altria’s net revenues fell 2.5% to $6,729

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