Vaping is a technique using an electronic cigarette. This technique over the years has developed popularity, especially on teens in society. We all know the health hazards of smoking and are doing more research on what health effects vaping has on the human body. But what about the economical perspective? What would the difference between the amount spent a year on cigarettes and vaping utensils? In order to understand this situation we must understand what influence the economical perspective has on this rather controversial subject.Out Of Pocket Differences As stated before, the average pack-a-day smoker in the US spends around $2,569.
50 a year on a normal pack of cigarettes (Glover). Vaping, on the other hand, is different . Instead of smoking cigarettes, consumers can choose to smoke out of disposable vape cartridges, which cost around $9 to $10 a vape, which would be equivalent to $1,387 a year (Glover).
Lacie Glover an author at NerdWallet reports that vapes range differently upon each vendor that sells them, such as one vendor’s prices can range from $25 to $145. If you were to compare the prices based on how much a pack-a-day smoker spends each year and a consumer that vapes with disposable cartridges, there is a $1,182.50 difference. The yearly expense for a rechargeable e-cigarette for a converted pack-a-day smoker is about $605 per year ($2.66 per cartridge) (Glover). That comes to be around 277 cartridges a year (Glover). Glover quotes, “While there’s little scientific data showing whether e-cigs are less harmful, they don’t have the immediate health concerns of tobacco cigarettes.
Vapes are less expensive, whether you buy the disposable or rechargeable kind. E-cigs are an option if you want to try to quit smoking, but the long-term effects of health benefits and hazards are still unknown.” The Vaping Industry Overseas In the United Kingdom, tobacco sales have gone up 80% over the past decade and that the average 20 a day smoker spends up to £2,900 a year ($3935.76 in US currency), and that the total UK annual expenditure on tobacco products sits around £18 million (Beck). Furthermore, Beck reports that “The price of a pack of 20 premium brand cigarettes is around £7.98, 77% of this price is duty and VAT and in 2014, it was reported that the treasury received revenue from tobacco duties totalling £9.5 billion (although depending on the source, this figure rises to around £12 billion). “The duty on cigarettes is aiming to serve 2 purposes; 1) To reduce smoking by increasing the price and 2) to raise taxes from a source that has a minimal impact on the economy.
To put this into perspective, it is suggested that the total financial burden to the UK is around £12.9 billion each year,” (Beck). Beck also reports that the UK loses over £5 billion each year in smoke breaks.Smoke Break Controversy Simon Chapman and Becky Freeman are Emeritus Professors in the School of Public Health in the University of Sydney, who’s research shows smokers are more to be absent from work than employees who don’t smoke. A study from 2008 shows research that smokers are more to be absent from work than employees who don’t smoke. This is found typically for employees who smoke, especially found in urban landscapes, are seen taking numerous smoke breaks. Dr.
Simon Chapman and Becky Freeman claim found that employees who smoke, especially found in urban landscapes, are seen taking numerous smoke breaks. They claim, “This has caused resentment among many non-smokers who are not accorded similar breaks.” They found an online research pole from 2005 asking, “Should smokers work longer hours to make up for cigarette breaks?” that attracted over 93,820 voters, where 70% of them agreed.
Not only that, but in a 2013 study based on smoke breaks, workers who smoke cost the US an estimated $278 billion annually in lost productivity due to absenteeism and extra health care costs (Witters). The loss is so high due to the fact that the Estimated Annual Incremental Absenteeism costs a company/business $341 per day missed. Vaping Businesses At White Cloud Electronic Cigarettes, they state that,”Tens of thousands of vape shops and e cig kiosks have opened in the United States and their numbers continue to increase every day.” “Lack of regulation can lead to more opportunities,” when it comes to selling these products and creating new jobs to help boost the national economy of the US, is what they seem to claim when it comes to how productive this industry is for the US economy.
“Jay Taylor, avid e cig advocate and owner of a vapor retail store in Virginia, explains that high product demand has played a key role in the consistent growth of his small business.’I’ve got customers from 18 to 83,” Taylor says, pointing out that his client base comes from a variety of socioeconomic backgrounds and that virtually all of them are ex-smokers because of e cigarettes.'” Furthermore, the authors at White Cloud Electronic Cigarettes claim that over $500 million of e-cigarette sales were online in 2013. “If the FDA decides to eliminate online sales, the result will most definitely prove more complicated.
” The writer also has another fact, stating that “If trends continue as they are, though, e cigarette sales are predicted to hit the $10 billion mark by 2017.” Not only that, but research shows that the average B Vape Shop could generate over $26,000 monthly sales per store, which would be over $300,000 a year (Reynoldson). Reynoldson shows research that the average vape shops earns about 60% off of the E-juice that they sell.
Reynoldson also shows that independent vape shops “earn a combined annual revenue of $1.5 billion.” His evidence shows that these vape shops are doing fairly well because of their rising popularity throughout the decades.
The Evolution of The Vape Industry The bloggers of VaporFi states that the current market predicts for the vaping industry to be worth over $50 million by the year of 2025. They also explain the laws and regulations that come along with vaping, and in their eyes it is a positive effect for vaping industries, consumers, etc. They say that their MOD’s would most likely become smaller in size, become more efficient, more user-friendly, and easier to tweak to meet the consumers wants. Why does this matter? It helps gather in attention from either previous, or possibly future consumers. But before this big vaping industry was well known about like today, there have been times where even cigarettes were sold online. Americans were reaching for the Internet to buy cigarettes cheaper ( Kim et al. ).
Vendors on Indian reservations sell tax-free cigarettes, and excise taxes are low in tobacco producing states such as Virginia ($.025 per pack of 20 cigarettes), Kentucky ($.03), and North Carolina ($.05). High excise taxes are featured in states such as California ($.
87),Alaska ($1.00), Hawaii ($1.00), and New York($1.11).” They also argue that “tobacco products are a major retail item in the US.” Their statistics show that over 47 million adults and 4 million teenagers smoke cigarettes and that the annual profit for the tobacco companies is over $40 billion. Electronic cigarettes have gained a desirable amount of attention from nicotine consumers, but that there was still very little knowledge about this new coming industry (Noel et al.).
Electronic cigarettes, even though they have gained rather high popularity, we still don’t know everything about them. What we do know is that they seem to have a rather positive influence on our economy, despite the dangers that we still don’t know about this growing popular product.