In 2017, the electronic cigarette and vaporizer markets are hotter than ever, and this is a trend that is bound to continue over the next few years. As with all consumer and lifestyle trends, investors and business analysts are paying very close attention to developments in the vaping and e-cigarette worlds as they look for profitable opportunities.
One important factor that has caught the attention of prospective investors and market observers is that research studies are yielding very positive results for the e-cigarette industry. One such study was completed in February 2017, and it arrived to the conclusion that vaping is far less harmful than smoking. The study, which was conducted by researchers from University College London and Cancer Research United Kingdom, followed the health of 181 individuals who used to smoke traditional tobacco cigarettes but later switched to e-cigarettes and other vaping devices. The test subjects were tested for certain toxins and substances associated with cancer, which were significantly lower while they were vaping compared to when they were vaping.
The aforementioned study does not purport to show that vaping is as healthy as eating fresh salads three times a day; instead, it shows that inhaling the emissions produced by the vaporization process is less harmful than smoking tobacco cigarettes, particularly when the vaping liquids used contain low levels of nicotine and other contaminants.
With the above in mind, it seems as if vaping will completely absorb the smoking market in a few years, and investors who are looking to profit in the early stages should follow the shares of companies mentioned below:
Philip Morris
Most of the companies traditionally associated with tobacco products have seen the writing on the wall with regard to vaping. Tobacco giants such as Philip Morris are not the type of companies that will sit around and lick their wounds while they lose market share to vaping trends. Philip Morris joined the vaping industry with iQOS, which can be described as a sort of unique vape pen and interesting atomizer tank for smokers who are curious about vaping. Instead of selling bottled fluid or cartridges, Philip Morris is taking a more traditional approach and selling HeatSticks, which sort of look like Marlboro cigarettes and have a similar taste. Philip Morris International trades on the New York Stock Exchange under the symbol PM.
Turning Point Brands
This company has been developing tobacco products for smokers who dislike the way cigarette smoke seems to permeate clothes, hair and skin with its characteristically unpleasant smell. Turning Point’s Beech-Nut chewing tobacco has been sold at military bases for decades; it is well-known among field units where smoking is not allowed due to tactical reasons. Turning Point developed the V2 e-cigarette a couple of years ago, and is now focusing on more advanced vaporizing devices. This company trades in the New York Stock Exchange under the symbol TPB.
Reynolds-American
This company is similar to Philip Morris in the sense of being an established tobacco player that understands the need to move in the direction of vaping. Reynolds-American entered the vaping market in 2012 with the acquisition of blu, a trendy e-cigarette brand that has achieved popularity in the United Kingdom. Eventually, blu had to be sold off for compliance issues; however, the company remained committed to innovating in the vaping space. These days, Reynolds-American has the best-selling e-cigarette in the United States, the Vuse. It is interesting to note that Vuse is not exactly associated with the top vaping products in the market; nonetheless, Reynolds-American is very proficient in terms of distribution. Shares of this company can be traded on the New York Stock Exchange as RAI.
In the end, vaping stocks present what could be a lucrative activity for investors who get in early. Keep in mind that vaping is attracting more smokers on a daily basis, and thus it is safe to assume that this trend will fully mature in just a few years.
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