The tobacco industry is known to rake up some of the highest numbers when it comes to revenue. The industry continues to function well and has a promising future. Despite several threats over the years, the cigarette sector has managed to stay afloat through various strategies like raising prices, cost cutting and expanding to emerging markets.
The overall production levels of the cigarette industry have significantly reduced. A 35% reduction has been noticed in the production of tobacco products for local consumption as well as for exports. Despite this drastic reduction, the tobacco sector continues to do well because of the top large corporations in the industry.
The tobacco industry has seen threats in the past years in the form of lawsuits and reduced consumption. The health risks of tobacco products are being advocated widely in recent times, encouraging many to give up the dangerous habit. Alternatives like smokeless tobacco and nicotine replacement therapy have emerged. However, these cessation treatments were not as effective as hoped.
One of the biggest threats the tobacco industry has received in the last few years is from electronic cigarettes. As these simple devices simulate the same smoking ritual without providing tobacco, they are being touted as the next leaders in the industry. Electronic cigarettes are serious threats to the tobacco industry because they allow smokers to continue 'vaping' without exposing them to carcinogens and thousands of toxic chemicals exhaled with tobacco smoke.
Electronic cigarettes are strong competitors to their tobacco counterparts because they are more efficient cessation devices. Although they are not formally marketed as smoking cessation devices, electronic cigarettes have been known to deliver better results than all other therapies combined. With rising taxes on tobacco products and increasing number of smoking bans implemented all over the world, electronic cigarettes are also cost effective as they work out much cheaper than traditional cigarettes.