Warning: E-cigarettes Could Lose Their Spark Modest Money2 Comments

E-cigarettes, they were once a glint of light for investors looking to make a foray into the lucrative tobacco industry. It all seemed too good to be true: they were reportedly healthier than regular cigarettes, you could advertise them and there were plenty of startups working on exciting e-cig innovations like computer chips to track puffs and temperature. But now with looming regulations and criticisms, could e-cigs have lost their spark?

In 2014, the e-cig business was booming for startups. Many had seen the technology potential and those who had built particularly innovative enterprises suddenly attracted the attention of large tobacco companies and venture capitalists looking to spend. For the former, it was a way to bring the profitable tobacco industry into the digital age, and for the latter, a perfect opportunity to gain entry into the promising new market.

In the UK alone, the e-cig market, currently estimated at a value of £91.3 million a year, increased by 340% in 2013 and is predicted to be worth around £340 million by the end of 2015.

Despite the booming sales, the future of electronic cigarettes has become a grey area on an international scale.

Regulations could mean tech trouble

Currently,…

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This entry was posted in Financial Advice, and tagged Modest Money2 Comments
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