E-cigarettes entered the US retail market for the first time in 2006. Since then, other tobacco product (OTP) market segments have gained a large customer base in the convenience store channel.

The addition of open system evaporators and DNA swapping equipment further expands the inventory options of the Electronic Nicotine Delivery System (ENDS).

In the early days, all types of ENDS mainly attracted young customers, especially millennials, and ultimately attracted the Z generation. Although this situation still applies to a certain extent, as consumers become more aware of OTP, another trend has emerged: some traditional cigarette users switch to e-cigarettes.

Because ENDS uses nicotine instead of tobacco, they do not contain the carcinogens commonly found in combustible cigarettes, so they are often touted as less harmful alternatives. At this point, it must be noted that the U.S. Food and Drug Administration (FDA) does not designate any ENDS as risk modification or harm reduction, and the agency has authorization for tobacco products sold in the United States.

The one exception so far is the heat-not-burn iQOS, which is technically neither an e-cigarette nor an e-cigarette device.

Nevertheless, many interested groups recommend that smokers switch to ENDS because they are considered a low-risk nicotine substitute that can help them quit smoking. Although studies have reached different conclusions about the efficacy of e-cigarettes and e-cigarettes as smoking cessation aids, many researchers agree that users like the idea of using them for this purpose.

In fact, researchers say that the popularity of ENDS has surpassed nicotine gum and lozenges.

In addition, supporters believe that the fruity and sweet e-liquid and nicotine salt encourage individuals to switch from cigarettes to e-cigarettes. Due to concerns about the use of these products by teenagers, the FDA banned most flavored e-cigarette products in 2020. It does exempt disposable e-cigarettes and open system e-cigarettes. Opponents claim that taste restrictions may cause people to switch to combustible cigarettes.

In the past few years, another market development has emerged: According to sales research and store-level observations, consumers are willing to pay for these two types of products. Although they occasionally reach out for e-cigarettes, they also tend to light up cigarettes.

This purchasing model provides additional opportunities for convenience stores. If customers switch completely from traditional cigarettes to e-cigarettes, it will only be a direct exchange, not an increase in basket sales. On the other hand, dual-use customers created the opportunity to increase the sales of the two product lines, doubling the number of shopping baskets.

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