Open System Vaporizers Officially Overtake E-Cigs, Top $1 Billion in Sales for the First-Time Ever September 26 2014
MIAMI, FL, Sep 25, 2014 (Marketwired via COMTEX) -- VMR Products, a global leader in the electronic cigarette industry and the makers of V2(R), one of the nation's leading brands of electronic cigarette products, today announced that, for the first-time, open system vaporizers have exceeded electronic cigarette sales by $500 million. They have also surpassed $1 billion in annual sales across both traditional and digital retail channels.
According to Wells Fargo Securities, open system vaporizers now contribute more than $1.5 billion to the overall electronic vaporizer market in the U.S., with electronic cigarettes accounting for $1 billion. Domestically, the combined electronic vaporizer market is now estimated at $2.5 billion -- and growing.
"Open system vaporizers are quickly gaining in consumer confidence, with electronic cigarette users moving towards these more powerful, tank-style devices," said Bonnie Herzog, Managing Director and Senior Beverage and Tobacco Analyst at Wells Fargo Securities. "In addition to the experience provided through them, open system vaporizers are also a lower-cost vaping option over the long-term. We have found, for instance, that the weekly spend for an open system user is about 30% less than that of an e-cigarette user."
At an estimated $2.5 billion, the overall vapor category -- open systems plus electronic cigarettes -- experienced 23% annual growth in 2014, with open system devices having a considerable impact on the industry's continued success. In fact, according to Wells Fargo, open system sales are now growing twice as fast as the overall vapor category. As a result, though e-cigarettes previously represented the majority of the vapor market's sales just six months ago, open system devices have quickly surpassed them, accounting for 60% of all U.S. vaporizer sales.
"Open systems represent a huge opportunity for the industry, particularly retailers," added Herzog. "In a recent 'Tobacco Talk' survey of retailers, we discovered that, in the coming months, 100% plan to feature both electronic cigarettes and open tank systems in-stores. Open tanks are profitable -- with high margins -- and, unsurprisingly, are quickly growing in volume and shelf space at retail."
VMR Products was one of the first major electronic cigarette manufacturers to recognize the growing customer demand for open systems, recently launching a new line of vaporizers called V2 Pro. The new line offers the most technologically advanced, open system vaporizer solution today, featuring the ability to vaporize e-liquids, loose leaf tobacco, and essential oils -- all through one portable device.
"Open-tank systems give vapers the ability to customize the experience to meet their needs, which has become a significant feature to many," added Cynthia Cabrera, Executive Director of the Smoke-Free Alternatives Trade Association (SFATA).
"Electronic cigarettes have been in the marketplace for over five years," said Jan Verleur, CEO and co-founder of VMR Products. "In that time, we've seen a fundamental shift in consumer appetites towards open system devices designed to exceed the capabilities of the micro-cig form factor. These vaporizing devices represent a significant growth opportunity for our industry to meet rising customer demand."