The document discusses e-cigarettes and vaping. It covers the technology behind e-cigarettes, their composition compared to regular cigarettes, global and Indian brands, laws around the world, the evolution and regulation of the industry, comparisons of the e-cigarette and conventional cigarette markets, the future of e-cigarettes, and new developments.
2. DE-
’VAPING’
THE TECH BEHIND AN E-CIGARETTE
THE COMPOSITION OF AN E-CIGARETTE
E-CIGARETTES VS REGULAR CIGARETTES
E-CIGARETTE LAWS AROUND THE WORLD
EVOLUTION+REGULATION OF E-CIGARETTES
MARKET COMPARISON (WORLDWIDE)
THE ROAD AHEAD FOR E-CIGARETTES
A PEEK INTO NEW DEVELOPMENTS
3. THE TECH BEHIND AN E-CIG1
DESIGNED TO IMITATE REGULAR CIGARETTES
& DELIVER NICOTINE IN A TOXIN-FREE VAPOR
3-PIECE
(BATTERY,
ATOMIZER,
CARTRIDGE)
2-PIECE
(BATTERY,
CARTOMIZER)
4. THE COMPOSITION OF AN E-CIG
THE E-LIQUID CONTAINS 3 BASE CHEMICALS + FOOD GRADE FLAVOURINGS
(MORE COMPLEX FLAVOURINGS ADD ADDITIONAL COMPOUNDS)
E-LIQUID
STRENGTH
CIGARETTES
SMOKED
None (0mg) 0-5/day
Extra Low (6mg) 5-10/day
Low (11mg) 10-15/day
Medium (18mg) 15-20/day
High (24mg) 20-25/day
Extra High (36mg) 25+/day
2
REGULAR CIGARETTE
NICOTINE DOSAGE
20MG
6. E-CIGARETTE VS REG.
CIGARETTE
4
No smell, no ash, no smoke, no yellow
teeth. Secondary vapor is less harmful.
Strong smell left behind, messy ash,
stained teeth. Secondary smoke very
harmful
Contains over 7000 chemicals, many
carcinogens.
Filters out most of the chemicals. Minimal
list of ingredients. NO TAR.
Comes in a variety of flavours and serves
as a smoking cessation instrument
Available in few flavours and addiction is
injurious to health
Not recyclable. 4.5 trillion filter-tripped
cigarettes deposited annually
Does not produce toxic butts and is
recyclable
Regular cigarettes are a costly habit.Cost effective (after the startup kit).
One 30ml e-liquid = 600 cigarettes
Technical glitches – battery issues,
exploding e-cigs!
Leads to addiction among kids/teenagers
due to the attraction of flavors.
7. LAWS
TWO-TIERBANNED UNCLEARPERMITTE
D
5
PUNJAB, INDIA
1st INDIAN STATE TO BAN
E-CIGARETTES, OCT 2013
CHINA, NEPAL
USE & SALE OF ECIGS
IS PERMITTED
BRAZIL
SALE, IMPORT & ADS OF
ANY ECIG IS FORBIDDEN
CANADA
ATTEMPTING TO IMPLEMNET
TWO-TIER SYSTEM BUT NOT
YET FOUND LEGAL FOUNDING
SOUTH AFRICA
TWO-TIER SYSTEM
8. EVOLUTION+REGULATION
1963
1967
2000
2003-04
2005-07
2007
2008
2009
2010
2011
2012
2013
6
1963 – Herbert Gilbert files for a patent on a smokeless tobacco cigarette that has “a
replaceable tip moistened with harmless, warmed substance that could simulate the flavor
of anything from root beer to rum.” Using a heating element it would create a warm vapor
that is inhaled.
1967 – Gilbert was approached by several companies interested in manufacturing his
patented idea, but it was never commercialized.
2000 – Hon Lik, a Chinese pharmacist, invents a device that heats liquid containing
nicotine into a smoke-like vapor that is inhaled into the lungs.
2003-04 – Hon Lik patents his product as an electronic cigarette and distributes his first
product to the domestic Chinese market after changing his company’s name to Ruyan, which
means, “resembling smoking.”
2005-07 – Electronic cigarettes are introduced in Europe and United States. In Europe, it
is introduced by British businessman Greg Carson, under the brand ‘Electro Fag’.
2007 – Lik receives his first international patent for E-cigarette.
Dec-2007 - Electronic Cigarette Forums, world’s largest website on Ecigarettes, is
launched
2008 – The WHO rules e-cigarettes are not to be considered as a smoking cessation aid.
Later in the year, in a study funded by Ruyan, Health New Zealand finds that carcinogens
and toxins are present at below harmful levels. They deem e-cigarettes a “safe alternative to
smoking.”
2009 – CASAA is created and endorses the use of E-cigarettes
Jan-Mar’09 – Explosive year of regulation worldwide - Australia bans possession & sale; Canada
bans ads, sale & import; Hong Kong bans E-cigarettes; Amazon bans sale, PayPal bans its use for
sale
June’09 – President Barack Obama signs the Family Smoking Prevention and Tobacco Control
Act 18. This provides the FDA power to regulate the tobacco industry.
2010 – The AAPHP states it supports the sale of e-cigarettes to adults. The AAPHP
recommends the FDA reclassify the e-cigarette as a tobacco product, as opposed to a drug
device. Another survey in Boston University concludes electronic cigarettes are much safer
& may hold promise as a smoking cessation method.
Feb’11 – The US Department of Transportation deems the use of electronic cigarettes on
airplanes as unsafe and announces they may issue a ban of the use on all flights.
Apr’11 – FDA announces it will regulate e-cigarettes under the Food Drug and Cosmetics
Act as it currently regulates analog cigarettes
2012 – Rebuildable atomizers make their debut allowing people to build atomizers from
everyday materials like cotton, silica and stainless steel mesh.
Oct’12 – AEMSA is formed, creating recommended standards for e-liquid vendors
Dec’12 – European Union proposes legislation that may render electronic cigarettes as
medicinal devices, effectively banning them for regular use.
2013 – FDA may propose regulation on the advertising, sale and use of electronic
cigarettes in the United States.
10. THE ROAD AHEAD FOR E-
CIGARETTES
8
WHY IT LOOKS BRIGHT…
CLASSIC DISRUPTIVE
TECHNOLOGY
Energy Drinks : Beverage Industry
E-cigarettes : Tobacco Industry
ENTRY OF BIG TOBACCO
PLAYERS
BigTobacco, Reynolds American, Altria
Group all entered the market recently
ATTRACTING VENTURE
CAPITALISTS
$75 million funding for NJOY e-cigs by Sean
Parker (Facebook, Napster), former US
Surgeon General - Richard Carmona
THE NUMBERS SPEAK FOR
THEMSELVES
Annual growth rate of 30%
Market revenue close to $2 billion, end of 2013
73% of retailers believe it’s here to stay
More than 50% of buyers are ‘repeat’ users
HOLLYWOOD’S HELPING HAND
E-cigarettes have been welcomed in a big way
by celebrities in Hollywood. Contributed to the
10 fold increase in e-cig sales from 2012-13.
EMERGING MARKETS IN
DEVELOPING COUNTRIES
India, China are adopting this product rapidly
11. THE ROAD AHEAD FOR E-
CIGARETTES
8
WHY IT MAY STUMBLE…
HIGHLY FRAGMENTED
MARKET
Market is highly fragmented & barriers to
entry are increasing
INCONCLUSIVE FDA STANCE
FDA still inconclusive on the safety or
effectiveness in quitting tobacco of e-
cigarettes
RESTRICTIONS/BANS ON
ADVERTISING
Beginning in mid-2016, advertising for e-
cigs would be banned in 28 nations of EU;
Touting e-cigs as safer than regular
smokes could draw FDA’s ire
TAXATION WILL INCREASE
As e-cigs become regulated, taxes will
increase, increasing costs
VARYING LAWS ACROSS
COUNTRIES
Lack of consensus on the safety of e-cigs
has resulted in diametrically opposite laws
in different countries.
BAN ON INTERNET SALES
PayPal & Amazon have already forbid e-
cig sales via their services. Citigroup
predicts a more widespread ban on e-sales
due to difficulty in verifying purchaser’s
age
12. A PEEK INTO NEW
DEVELOPMENTS
9
SMOKIO ($110)
E-CIG TO HELP YOU TRACK YOUR
‘VAPING’ HABIT
SUPERSMOKER
($110)
E-CIG WITH BLUETOOTH,
PHONE, MUSIC
