The U.S. Centers for Disease Control and Prevention (CDC) reported that the prevalence of smoking in the country went down from 20.9 percent to 16.8 percent during 2005 to 2014. Despite the apparent decline in smoking rates, however, tobacco is still regarded as a valuable investment for financial institutions.
The CDC said the reduction in cigarette smoking rates may be associated with the rising number in consumption of e-cigarettes. Manufacturers say that the current transition to e-cigs may pay off someday, but the profit margins from e-cigs are still noticeably low.
Proposed regulations on e-cigs may also significantly affect the market’s potential growth, they said. This is why, in the near future, tobacco companies might still rely on the strength of conventional cigarettes in gaining revenues.