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Will The New Regulations Slow Down The E-liquid Market In U.S?

Mar 14, 2017 10:17:04 AM / by BIS Research

Since the advent of e-cigarette, the United States has been the largest revenue generating region in e-liquid and e-cigarette market, with a dynamic nature of the market. The rising interest of big tobacco companies in the e-cigarette market gave a boost to the e-liquid market, with high proliferation in the demand of e-cigarettes and accessories. However, government regulations and taxation policies on e-cigarette and related products will affect the market in the coming years. The demand of e-liquid has surged in the market owing to the exponential growth witnessed over the past years. Companies are making new consortiums and forming alliances to expand the popularity of e-liquids and an increasing number of convenience stores and online retailers are expanding their product offerings to attract the consumers.

The escalating competition in the market and increasing demand for different e-liquid flavors is driving the U.S. e-liquid market forward. The market is expected to grow over $8.26 billion by 2025. However, the hefty taxes levied on e-liquids and related products by the government is the biggest challenge in front of e-liquid manufacturers and retailers. The market was previously dominated by prefilled cartridges and disposable e-cigarettes because of their feasibility. The cost-effectiveness of rechargeable e-cigarettes and disposable e-cigarettes will drive the market for prefilled e-liquid cartridges, whose dominance will continue in the market through 2025.

The ongoing formulations by the government and conforming to those regulations will hike the average selling prices of imported e-liquids. This will give ample opportunity to the local manufacturers to deliver quality products to the consumers. As the demand of different flavors is rising quality will be of utmost importance to the consumers, as is anticipated out of the U.S. manufactured e-liquids. Though some small e-liquid business may face grim situation or shut down owing to new regulations from FDA.

The new regulations will affect the U.S e-liquid market in different ways. The prices will go up and the wide variety of flavors may shrink down to a few thousands. There will be a decrease in the demand of custom mods or pens, as disposable e-cigarettes are more feasible and accessible. A threat to the market is the emergence of black market of e-liquid, which is likely due to the regulations. Despite all of these side-effects, an upside to the regulations is that there is an increased number of research in the e-liquid and e-cigarette arena, which will explore the effect of e-cigarettes on the human body and may help in redeeming the market.

Blu, Vuse, Logic, MarkTen, and NJOY among others are well established brands and contribute significantly to the e-liquid market value in the U.S. Dedicated e-liquid players such as NicQuid, Purilum, and J Vapes E-liquid have also been identified as key players in the market. BIS Research has conducted an extensive market research on ‘U.S. E-Liquid Market: Focus on Type, Origin, and Distribution Channel – Estimation & Forecast, 2015-2025 ’. The market analysis report aims to provide an in-depth analysis of the key development strategies, marketing strategies and market trend dynamics which includes drivers, restraints and opportunities prevailing in the industry.

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