Last year, the e-cigarette industry was valued at US$16 billion annually, and is projected to hit $26.7 billion by 2023.
The vast majority of this growth will be propelled by the e-cigarette company Juul, which has an extensive presence in nearly every country across the world. In the U.S., Juul has exploded in popularity since its establishment in 2016, accounting for 45% of the e-cigarette market as of June 2021.
In a recent interview with The Huffington Post, Juul CEO Kevin Murphy discussed the company’s remarkable success and its future plans. Here, we break down the numbers to determine how much are Juul pods at different U.S. gas stations.
The Growth Of Juul
Founded in Sweden in 2008, Juul rapidly expanded to 27 other countries before establishing itself in the United States as a result of its popularity there. In fact, Juul opened its first retail store in California in 2016, and has since expanded to 47 states across the country. This year, the company plans to double its number of U.S. locations.
In 2020, the company officially surpassed $1 billion in sales for the first time in its history. This was mainly thanks to the success of its Juul Pod e-cigarette, which accounted for $569 million of that revenue.
The runaway success of Juul became clear last year, when the company surpassed R.J. Reynolds Tobacco as the largest e-cigarette company in the world based on revenue. Although the two companies are often compared, Juul is actually a lot more mature than Reynolds, having been in business for nearly two decades.
How Much Is A Juul Pod At A Speedway?
A lot of people wrongly believe that e-cigarettes are less risky than regular ones. While there is still much to learn about the long-term effects of e-cigarettes, the truth is that they are just as harmful as the conventional kind. While there is currently no FDA regulation regarding e-cigarettes, the Agency for Toxic Substance and Disease Registry does list them as a possible carcinogen and reproductive toxin. However, as the health and legal risks associated with e-cigarettes continue to be revealed, more and more people are realizing the benefits of this relatively new technology.
Based on this latest FTC survey, we can see that about 87% of American adults have tried e-cigarettes, and 66% of them said they would recommend the product to a friend. One of the main reasons for their recommendation is the fact that e-cigarettes aren’t as bad for the environment as traditional ones, since they don’t burn down as much fuel when being used. Additionally, 27% of those who tried e-cigarettes said they use them to avoid the smell of tobacco, and 21% of them said they use e-cigarettes to express their individuality. Finally, 18% of those who tried e-cigarettes said they do so because they believe it helps them quit smoking completely.
When it comes to pricing, most people incorrectly believe that e-cigarettes are much cheaper than standard ones. However, this is often not the case, as conventional cigarettes can be up to 80% more expensive than the e-version.
The Performance Of Juul’s Business
Let’s take a look at the financial performance of Juul over the years.
The following table shows the company’s revenue from its various businesses for each of the past five years:
- 2016: $12.9 million
- 2017: $16.6 million
- 2018: $20.9 million
- 2019: $26.2 million
- 2020: $35.5 million
We can see that sales increased annually by an average of 19% from 2016 to 2020. The main reason for this growth is likely the growing number of people discovering the benefits of vaping as a means of consuming nicotine.
One of the primary reasons for the success of Juul is its attention to detail when it comes to product design. In a recent interview with The Verge, Juul Marketing Director Alexis Agathocleous described the process behind the design of the company’s various devices:
“We started with the classic Nicotiana tabacum leaf,” she said. “Then, we did a little bit of homework and learned a lot about the history of N. tabacum, and its role as a tobacco plant. From there, we developed the technology that allows us to create different leaf shapes and sizes for each of our flavors.”
With over 20,000 different flavors, it’s easy for consumers to lose track of which one they have tried and liked. To help customers easily find the right one, Juul offers a quick service bar where customers can request refills or changes to their orders.
In addition, the company uses machine learning and behavioral science to design better products and marketing strategies. Additionally, since its inception, Juul has focused on creating quality products that are not only enjoyable to use but are designed to improve people’s lives. For example, the company introduced the Juul Pod, an evolution of the e-cigarette concept that allows for more reliable use and fewer health problems than the early models. Since then, it has released a series of products designed to improve the lives of its consumers. This includes a disposable pod pen for people who want to try the product but aren’t prepared to make a permanent investment, and a kit that includes all of the necessary parts to build a personal vaporizer.
Despite all of this, regulatory issues remain a major concern for the company, as the FDA has still not approved any e-cigarettes or their associated products for medical purposes, despite several petitions and requests for such an approval. In 2020, as part of its Stop Marketing To Kids act, the FDA officially banned the sale of all flavored e-cigarettes to those under 18 years of age. To get around this, companies like Juul have started specializing in the sale of nicotine-free e-cigarettes for use with CBD oil, which the FDA has been quietly legalizing for medical use. While we wait for the FDA to make a decision on these products, the demand for them remains strong, as 62% of American adults (and 35% of teens) were either unaware of or didn’t know how to identify cancer-causing substances in food and drink as of 2019.
Overall, the e-cigarette industry is growing and changing, and with it comes uncertainty as to what the future holds. However, as long as there is demand for e-cigarettes, there will be new companies that enter the market to meet that demand.