INSUBCONTINENT EXCLUSIVE:
ET Intelligence Group: India has joined countries such as Mexico, Brazil, Singapore, Uruguay and Cambodia in banning electronic cigarettes
the bud, but the company might just be saved from the threat of disruptive competition ruining its cigarette market in the country.
Being
smokeless, e-cigarettes are perceived to be less harmful than conventional cigarettes, though the jury is still out on validating this
perception.
E-cigarettes and other vaping devices are supposed to help smokers quit smoking in search of healthier alternatives
Their sleek design and convenience also make them popular with the youth.
Global cigarette majors like Philip Morris, Reynolds and Japan
Tobacco have established their presence in this market
In the face of product innovations in the tobacco industry, many players feel that conventional cigarettes business alone may not be enough
to forge sustainable growth in the long term.
The global e-cigarette market is estimated to grow at a CAGR of 16.6 per cent to reach $27,670
million by 2022.
In India, use of e-cigarettes is still in its infancy
ITC launched e-cigarettes in 2014 under the brand name Eon
its conventional cigarettes business besides the strategy of premiumising its portfolio.
Smoking rates are declining globally amidst
increased regulatory curbs, forcing tobacco companies to look for alternatives
Incidentally, ITC joined the bandwagon of pharma companies selling nicotine replacement products in 2013 and launched Kwiknic, a chewing gum
for those intending to quit smoking
