According to news on July 14th, according to ECigIntelligence's latest research, large tobacco companies may soon dominate the US vapor market, while electronic cigarettes produced by small companies may disappear.
FDA's analysis of pre-market tobacco product applications (PMTA) shows that there are more applications for simpler disposables and cigarette-like devices than open system applications. According to ECigIntelligence, simpler products usually come from large companies, while open systems usually come from smaller companies.
Of the approximately 200 open system brands available today, only approximately 30 have submitted a pre-market tobacco product application (PMTA) to the FDA for marketing authorization, which is necessary for their continued sales. Even if all are approved, this difference means that about 85% of open system hardware brands will soon disappear from the list.
This may indicate the setbacks faced by non-tobacco companies when applying for PMTA approval. ECigIntelligence Managing Director Tim Phillips said, “For non-tobacco companies that do not have sufficient financial means or expertise, the PMTA process can be a daunting task. If small brands become less popular in this category, consumers may soon be able to choose only a few models provided by a few large companies.” ECigIntelligence analyzed more than 6 million submitted data received by the FDA.
ECigIntelligence performed some analysis on this list to understand how the US market might change in a market regulated by the PMTA. The list contains more than 6 million products submitted by 372 companies. Of these products, 99.9% are independent e-liquid products-80% of which are submitted by a company.
Some applicants seem to have developed an automated method for submitting products to the FDA portal, which allows multiple e-liquid formats and flavors to be submitted separately for nuances (eg, size, nicotine strength, etc.).