Big tobacco companies have seen a major decline in profits since the rise in popularity of vaping and e-cigarettes.
This is not just a local phenomenon, but rather a global one.
Smokers switching to vaping are due to a couple of main reasons:
- Research on health risks associated with smoking
- Laws restricting where users can smoke
- Rise in taxes for tobacco products and thus pushing up the price of cigarettes
- Mandatory health warnings on cigarette packaging
Due to the sheer volume of smokers quitting and taking up vaping, the tobacco companies had to adapt to a new chapter in the industry. They are ensuring at least part of the market share staying in-house by either buying vaping companies or by producing their own vaping products.
Some have even gone as far as to fund research into the effects of vaping vs smoking.
The tobacco industry is at the pinnacle of change and as in every other industry adaption is key to survive.