The Association between E-Cigarette Price and TV Advertising and the Sales of Smokeless Tobacco Products in the USA.

Yu Wang,Zongshuan Duan,Jidong Huang,Sherry L Emery,Yoonsang Kim,Frank J Chaloupka

doi:10.3390/ijerph18136795

Abstract

This study aims to examine how e-cigarette prices and advertising, key determinants of e-cigarette demand, are associated with the demand for smokeless tobacco (SLT) products in the US. Market-level sales and price data by year (2010–2017), quarter, and type of retail store were compiled from Nielsen retail store scanner database. E-cigarette TV advertising ratings data were compiled from Kantar Media. Four-way (market, year, quarter, store type) fixed-effect models were used to estimate the associations between e-cigarette price and TV advertising and sales of SLT products (chewing loose leaf, moist snuff, and snus). Our results showed that a 1% rise in own price was associated with a reduction in sales by 1.8% for chewing loose leaf, 1.6% for moist snuff, and 2.2% for snus, respectively. In addition, a 1% rise in disposable e-cigarette price was associated with 0.3% and 0.6% increased sales for moist snuff and snus, respectively. The association between e-cigarette TV advertising and SLT product sales was not significant. Our results suggest that disposable e-cigarettes and certain SLT products (moist snuff and snus) are potential substitutes. Policies aiming to regulate e-cigarette use and sales need to consider their potential link with the demand for SLT products.

Highlights

We found that when the price of disposable e-cigarettes increased, the sales of Smokeless tobacco (SLT) products would increase as well, with the estimated cross-price elasticity being 0.31 for moist snuff and 0.62 for snus, respectively. These results indicate that when disposable e-cigarette prices increase by 1%, sales of moist snuff and snus would increase by 0.31%
Our results suggest that use patterns regarding cigarettes and SLT products may have changed over time, and these products, chewing loose leaf and moist snuff, are increasingly used as substitutes for cigarettes in recent years
Our study found that the demand for SLT products in the US is highly price-sensitive

Summary

Introduction

Smokeless tobacco (SLT) products in the US market can be categorized into three broad types, chewing tobacco, snuff, and dissolvable SLT products [1]. Chewing tobacco includes loose leaf, plug, twist, and other chewing tobacco products, with loose leaf being the most popular subtype in the US market [1,2]. Snuff is finely ground tobacco, which can be either dry, moist, or packaged in pouches or packets. Moist snuff is the most consumed SLT product in the US, accounting for approximately 90% of all SLT product sales between 2011 and 2019 [2]. The US snus is a relatively new SLT product, which is packaged in small ready-to-use pouches filled with moist snuff that does not require spitting [1]. Dissolvable SLT products, including strips, tablets, and sticks, which can dissolve slowly in the mouth, account for a very small (less than 0.01%) market share in the US [1–3]. Current evidence suggests that SLT use is associated with elevated risks of oral, esophageal, and pancreatic cancer, gum disease and tooth loss, and cardiovascular disorders [4–8]

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