Daily Management Review

Fitch expects slowdown in tobacco market due to vaping ban


The ban on electronic cigarettes in a number of countries around the world, which was introduced after testing a new generation of tobacco products, could lead to a decrease in growth in the sector, Fitch rating agency reported.

Mike Mozart
Mike Mozart
"We expect that a recent inspection of a new generation of tobacco products, which included a ban on the sale of electronic cigarettes in some countries, states and cities in the United States, will slow down the sector’s growth," the agency said.

In the short term, Fitch expects significantly slower growth in the next-generation tobacco market.

At the same time, in the long run, the consequences of the bans remain uncertain, as this can bring profit to large companies by reducing competition from smaller producers.

Fitch forecasts that one of the world's largest tobacco producers, Philip Morris, will be less affected by regulatory control, as the company focuses on producing next-generation tobacco products that work without overheating.

It is specified that Philip Morris has received approval for the sale of this product by US regulators.

British American Tobacco, according to the agency, is more influenced by restrictions in the field of electronic cigarettes. Nevertheless, as the agency reports, the company confirmed that by 2024 it expects profit of 5 billion pounds (approximately $ 6.1 billion).

In September, Walmart announced cessation of sales of electronic cigarettes in the United States due to the difficulties of state and local regulation.

Also in September, the U.S. Centers for Disease Control and Prevention (CDC) said it had documented the twelfth death from vaping, with hundreds of Americans complaining about problems in this regard.

source: fitchratings.com

Science & Technology

Airbus: Passenger hybrid aircraft to take off before 2035

Ocado To Introduce ‘Mini Robotic Warehouse’ With Standard Productivity

AB InBev’s Piled Up Alcohol Is ‘Too Good to Waste’

Ericsson Mobility forecasts nearly fourfold increase in mobile traffic by 2025

Elon Musk: We received 146,000 orders for Cybertruck

Google turns the screws on political ads

Apple to come up with AR glasses

WEF: Big data regulation becomes a problem

Israeli Firm Accused Of Spying By WhatsApp, Lawsuit Filed Against It

Google Used Quantum Computer To Solve Complex Problem

World Politics

World & Politics

Protests in France gain the greatest scale since 2010

Massive blackout unfolds in Venezuela

French And Russian Presidents To Discuss The Moratorium On Missiles In Europe

EU adopts budget for 2020, more funds allocated to climate change fight and innovation

Israeli prime minister indicted in three criminal cases

Argentina finds a way to pay off IMF loan

Sweden closes Assange rape inquiry

Has Chile Put All Its Eggs In One Basket To Turn Towards Renewable Energy?