The tobacco/nicotine industry stands at an interesting point in history. While the negative side-effects of smoking have reduced cigarette volumes, many existing smokers don’t have a viable alternative that delivers nicotine quickly enough into the bloodstream. Rising cigarette prices are quickly pushing these consumers, which spend upwards of $680 billion per year, toward alternatives, like e-cigarettes or potentially new edible nicotine products. Demand for alternatives is skyrocketing: private e-cig company JUUL has current monthly revenue of US$200 million and has been growing at more than 600% per annum for three years.
Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) is focused on non-combustible opportunities using its DehydraTECH™ delivery platform. In recent in-vivo animal studies, the company demonstrated that its delivery technology achieved nearly double the delivery than non tech-enhanced edible forms of nicotine, as well as significantly improve nicotine absorption across all subsequent time points — making it a compelling nicotine replacement option.
For consumers craving nicotine, speed matters, and DehydraTECHTM delivered 317% more nicotine within 30 minutes than the non tech-enhanced control.
CFN Media recently sat down with Lexaria CEO Chris Bunka at the NCIA 2018 to discuss the company’s unique approach to the market and what’s coming up.
Quantifying the Nicotine Market
Tobacco companies sold about 5.5 trillion cigarettes in recent years, according to the British American Tobacco, along with over billions of cigars and millions pounds of smokeless tobacco products. The majority of these cigarette sales came from just a handful of multinational companies: Altria Group Inc. (NYSE: MO), British American Tobacco Inc. (NYSE: BTI), and Imperial Brands Inc. (OTCQX: IMBBY).
Tobacco revenue from these sources reached around $680 billion in recent years, excluding China’s market, driven by higher prices and emerging market demand offsetting lower consumption in developed markets.
If you expand the market to nicotine products, and not just tobacco, that Continue Reading