As e-cigs evolve, e-cigarette batteries offer an opportunity to capture more sales.
Sales of rechargeable lithium-ion batteries are on the rise, and e-cigarettes appear to be one of the forces driving the market.
In this age of expanding technological availability and reliance, energy is everything. Even seemingly simple household batteries play an important role in the lives of many Americans, according to market research firm Packaged Facts in the report “Batteries: Consumer Market Trends in the U.S.”
“The devices powered by household batteries range from the likes of clocks that have a low demand drain on the power stored in the batteries to high-drain devices, especially portable electronic communications and computing devices,” said David Sprinkle, research director, Packaged Facts.
In the report, Packaged Facts estimates the U.S. market for household batteries was $4.5 billion in 2015, up nearly 2.5% over 2014’s sales. The overall market increased at a compound annual growth rate (CAGR) of 2.4% for the period 2011 to 2015. View additional information about Batteries: Consumer Market Trends in the U.S.,
Looking ahead, sales of household batteries will reach $5.2 billion by the year 2020. Lithium-ion rechargeable batteries will see the greatest increase, with a CAGR of almost 12%, and surpass alkaline disposable batteries as the largest segment of the overall household batteries category.
Further, lithium will have a 46% share of the market in 2020, up from its 34% share in 2015. Supporting the rise in rechargeable lithium-ion battery sales is their use in electronic cigarettes.
“The market for e-cigarettes as tobacco alternatives has grown at triple digit rates over the past decade. There are signs that the rate has slowed to double digits as smokers go back to real tobacco while product development continues,” said Sprinkle.
Still, younger smokers seem to account for a growing portion of the consumer base for e-cigarettes and despite the relative slowdown in market growth, the overall trend is toward continued expansion. This is supported by the entry into the market of mainstream tobacco companies. These companies could well take over the entire market in the next few years. But even if they do not, their participation will lead to greater availability of batteries for e-cigarettes in supermarkets, convenience stores and other retail outlets in which the batteries have previously lacked traction. In the current market, it appears that most of the e-cigarette battery sales are through online vendors, which has actually helped grow the internet as a source for battery sales overall.
