Vuse’s Market Share Falls, NJoy’s Sales Surge: Nielsen Report Insights

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    The U.S. e-cigarette market is experiencing significant shifts, influenced by regulatory measures, consumer behavior, and the proliferation of illegal products. According to a recent Nielsen report, Vuse’s market share has declined, while NJoy has seen a notable increase in sales.


    Nielsen Convenience Store Report Findings

    E-Cigarette Sales Decline

    Based on Nielsen’s convenience store report for the four weeks ending June 1, e-cigarette sales fell by 15.7% compared to the same period last year.

    Market Share Changes

    • Vuse: The market share of Vuse, a popular product by Reynolds, decreased from 41.4% to 41.1%. This decline reflects the broader industry trend of declining sales and market share.
    • Juul: Juul’s market share rose from 23.6% to 24%. Despite regulatory setbacks, Juul remains a significant player in the market.
    • NJoy: NJoy’s market share grew from 3.3% to 3.4%, with an 8% sales increase over the past four weeks. This growth is significant as it positions NJoy as a major competitor in the e-cigarette market.
    • blu eCigs: Fontem Ventures’ blu eCigs, a subsidiary of Imperial Brands Plc, maintained a stable market share of 1%.

    Impact of Illegal Products

    David Sweanor, an adjunct professor at the University of Ottawa’s law school, noted that consumers are increasingly turning to unmeasured aerosol products and nicotine pouches not tracked by Nielsen. This shift is partly due to the availability of illegal synthetic nicotine e-cigarettes, which are not subject to the same regulations as legal products.

    Market Dynamics and Regulatory Response

    Federal Agencies’ Task Force

    In response to the proliferation of illegal e-cigarette products, several federal agencies have formed a special task force. Announced on June 11, the task force includes the Department of Justice, FDA, ATF, U.S. Marshals Service, U.S. Postal Inspection Service, FTC, and other agencies. Their goal is to address the domestic illegal distribution and sale of e-cigarettes through investigation and prosecution under various federal regulations.

    Enforcement Efforts

    The task force will focus on criminal, civil, seizure, and forfeiture actions under the Prevent All Cigarette Trafficking Act (PACT), the Federal Food, Drug, and Cosmetic Act, and the Family Smoking Prevention and Tobacco Control Act. Violations can result in felony convictions, substantial fines, civil penalties, and the seizure of unauthorized products. Brian King, Director of the FDA’s Center for Tobacco Products, emphasized the need for a comprehensive approach to enforce laws against illegal e-cigarettes.

    NJoy’s Growth and Strategic Moves

    Recent Acquisitions and Authorizations

    In June 2023, Altria acquired NJoy for $2.75 billion, following its sale of a minority stake in Juul. This acquisition, along with the FDA’s marketing authorization for NJoy’s menthol-flavored products, positions NJoy for continued growth. NJoy’s portfolio now includes FDA-authorized menthol e-cigarettes, supporting the transition of adult smokers to smoke-free alternatives.

    New Product Submissions

    NJoy has submitted a Premarket Tobacco Product Application (PMTA) for the NJoy Ace 2.0 device, featuring age-gating technology to prevent use by minors. Additionally, NJoy resubmitted PMTAs for blueberry and watermelon flavored products designed for the Ace 2.0 device, further expanding its product lineup.

    Nicotine Pouch Market

    ZYN’s Market Leadership

    ZYN is the leading nicotine oral product, with sales up 72.7% year-over-year, totaling approximately $2 billion annually. ZYN holds a 25.9% market share, followed by Altria’s Copenhagen at 23.8% and Reynolds American’s Grizzly at 16.9%. The growth of nicotine pouches indicates a shift in consumer preferences towards alternative nicotine products.

    Traditional Cigarette Sales Decline

    Decline in Major Brands

    Traditional cigarette sales have also declined, with a 6.3% drop in the latest report. Key brands experienced significant decreases:

    • Philip Morris USA: Down 6.7%, maintaining a 50.9% market share with Marlboro holding a 46% overall market share.
    • Reynolds Tobacco: Down 6.9%, with a 33% market share. Newport, the second-largest brand, held a 12.4% share, followed by Camel at 8%, and Natural American Spirit and Pall Mall both at 3.5%.
    • ITG Brands: Down 5.4%, with an overall market share of 8.4%. Winston, the seventh-ranked brand, held a 2% share, while Kool and Maverick each occupied 1.7% of the market.

    FAQs

    What is the significance of NJoy’s recent market performance?

    NJoy’s market share grew from 3.3% to 3.4%, with an 8% sales increase, positioning it as a significant player in the e-cigarette market amid declining sales for other brands.

    How has the FDA responded to the proliferation of illegal e-cigarette products?

    The FDA, along with other federal agencies, has formed a special task force to address the illegal distribution and sale of e-cigarettes, focusing on enforcement actions under various federal regulations.

    What are the main challenges facing the e-cigarette market?

    The e-cigarette market is challenged by declining sales, competition from illegal products, and shifting consumer preferences towards alternatives like nicotine pouches.

    What is the impact of the Nielsen report on traditional cigarette sales?

    Traditional cigarette sales have declined by 6.3%, with major brands like Philip Morris USA, Reynolds Tobacco, and ITG Brands experiencing significant drops in market share.

    What is the market share of the leading nicotine oral product, ZYN?

    ZYN holds a 25.9% market share, leading the nicotine oral product market with sales up 72.7% year-over-year, totaling approximately $2 billion annually.

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