Seeking Alph reported that whether we admit it or not steam vapor has become a rapidly growing industry in the world and shows no signs of slowing down. Philip Morris International, Altria Group and British American Tobacco are facing growing threats from e-cigarette and steam-tobacco brands. These devices and e-cigarette manufacturers spread far faster in the youth market than traditional tobacco products.
As popularity increases and the education of smokeless tobacco products continues to advance, these products will increasingly engulf the market share of the tobacco giant combustible cigarettes. Bis Research recently conducted a "conservative" market analysis survey that estimated the global e-cigarette market worth $ 8 billion in 2015 and is expected to grow at a CAGR of 19.34% for the entire forecast period to reach 46.9 billion by 2025 Dollars.
With the growth of the e-cigarette and steam smoke industries, sales of combustible cigarette tobacco products from Altria Group and British American Tobacco are slowing. In the latest Q3 results, Altria decreased its net income for the quarter by 2.5% to $ 6,729 million due to a decrease in net income from the flammable cigarette product segment. Similarly, British American Tobacco recorded a 5.6% drop in cigarette sales over the same period last year, despite the growth of certain brands.
Investors at Philip Morris International, Altria Group, and British American Tobacco should pay more and more attention to the fact that while they provide health bonuses of 4.09%, 4.11% and 3.49% respectively, they simply can not match the growing E-cigarette market, especially steam smoke products to compete. Countless e-cigs are growing month by month in triple-digit market share, while tobacco giants are trying to catch up with internal innovations.
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