In the past two years, sales of disposable e-cigarettes have increased nearly 63 times. Looking back, there are roughly two reasons for the rapid increase in one-time sales:
In terms of price, disposable e-cigarettes have obvious advantages. In 2021, the British government will increase the tax rate on cigarettes and other tobacco products. A pack of 20 cigarettes will be charged a tax of 16.5% of retail sales plus £5.26. According to calculations by Huachuang Securities, the prices of disposable e-cigarettes ELFBar and VuseGo are 0.08/0.15 pounds per gram of nicotine respectively, which is far lower than the 0.56 pounds of traditional cigarettes Marlboro (Red).
Although the price per gram of nicotine of reloadable and open e-cigarettes is slightly lower than that of disposable e-cigarettes, they have their own shortcomings. For example, the former requires an additional fee of at least 10 pounds for smoking equipment, while the latter has a higher threshold and difficulty. Disadvantages include portability and easy oil leakage.
Considering the current unstable economic situation in Europe, the price advantage of e-cigarettes over traditional cigarettes has been further strengthened. Since July 22, the UK CPI index has increased by 10%+ for many consecutive months. At the same time, the GKF consumer confidence index continues to be at a low level, and in September 22, it hit a new low since the 1974 survey.
In addition to price, taste is also an important reason for the explosion of disposable e-cigarettes. During the rise of e-cigarettes, diversified flavors are an important reason why they are popular among young people. Data from iiMedia Research shows that among the flavors preferred by Chinese e-cigarette consumers in 2021, 60.9% of consumers prefer rich fruits, food and other flavors, while only 27.5% of consumers prefer tobacco flavors.
After the United States banned reloadable flavored cigarettes, it left a loophole for disposable flavored cigarettes, pushing a large number of former reloading consumers to switch to disposable e-cigarettes. Take ELFBar and LostMary, which have the largest sales, as an example. Together, they can provide a total of 44 flavors, which is much higher than other brands.
This also helped disposable e-cigarettes seize the underage market very quickly. From 2015 to 2021, among underage users, the most popular e-cigarette category is open. In 2022, disposable e-cigarettes will become rapidly popular, with their proportion increasing from 7.8% in 2021 to 52.8% in 2022. According to ASH data, among minors, the top three flavors are fruity mint & menthol/chocolate & dessert: among adults, fruity flavor is still the first choice, accounting for 35.3%.
From this perspective, the price advantage and diversified flavors of disposable e-cigarettes have become the reasons for their popularity.
Post time: Oct-17-2023
