| Summary: | Background
Very
little is known about the prices of new non-combustible tobacco products such
as electronic cigarettes. Moreover, because of this paucity of data, it is
difficult to evaluate the cost for individuals to use e-cigarettes and similar
products relative to combustible tobacco products. As governments consider economic policies
such as taxation to address tobacco use, an understanding of the changing
landscape of product prices will be crucial.
Methods
This
study utilizes Nielsen retail scanner data from 53 designated market areas in
the United States from the period of 2011 through 2015 to examine the trends in
tobacco product prices over time and in relation to one another. Average prices
for combustible cigarettes, rechargeable e-cigarettes, and e-liquid were calculated
for each market and a payback period to recoup the investment in an e-cigarette
was calculated in a similar manner to Liber et al., 2016 (Tobacco Control). Constant
growth regression was employed to determine rates of change over time.
Results
We find that prices for combustible cigarettes and
e-cigarette refills increased during the period of 2011-2015, while prices for
disposable and rechargeable e-cigarettes decreased. However, overall,
combustible cigarette prices remained lower than disposable e-cigarette prices.
The period to recoup the purchase of a rechargeable e-cigarette for a
pack-a-day smoker who has switched from combustible cigarettes decreased from
12 to 2 days.
2011 2012 2013 2014 2015 AAPC Combustible Cigarettes 5.42 5.47 5.55 5.70 5.82 1.90% E-cigarette Starter Kit 31.37 27.58 21.89 13.70 12.29 -23.37% E-cigarette Refill 2.16 3.03 3.14 3.09 3.01 6.70% Payback Period 12.02 7.29 5.20 2.59 2.15 -37.60%
[Mean Product Prices in 53 Nielsen DMAs, 2015 USD]
Conclusions
In
the United States, the cost of e-cigarettes quickly approached parity with
combustible cigarettes. Future observation of the effects of relative prices on
consumption patterns will guide the development of enlightened tax and price
policies around the world.
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