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Morgan Stanley found that Juul is drawing in young users, while helping others quit



juul e-cig pax labsMelia Robinson/Business

  • Morgan Stanley research finds that while Juul helps smokers
    lower their cigarette consumption, it’s still drawing in plenty
    young non-smokers
    , too.
  • The report also finds that non-smokers are typically drawn to
    Juul primarily by social
  • Analysts think the FDA will roll out a series of policies by
    year-end to better control the rising rates of teen e-cigarette

Popular e-cigarette startup Juul Labs has been facing controversy
recently over the appeal of its products for minors. 

In September
, the US Food and Drug
Administration  announced that
it was taking steps to crack down on the sale of e-cigarette
products — like the increasingly popular Juul — to minors. JUUL
responded that it planned to work with the FDA, and that its
“mission is to improve the lives of adult smokers by providing
them with a true alternative to combustible cigarettes.”

But evidence has been mounting that Juul’s products have
significant appeal to young people.

The latest comes in a Morgan Stanley research report
published Thursday. It found that about 15% of Juul users weren’t
smokers before they started vaping, and that group tended to be
younger than other vapers.

On Tuesday
, a different survey found that a higher
portion of 
 aged 15-17 are using the Juul at least once
a month compared to those aged 25-34. 

Morgan Stanley surveyed 402 Juul users above age 18, so the
bank’s survey doesn’t provide information about users younger
than that. Among the youngest group in the survey, those 18-24, a
third hadn’t smoked before starting to use Juul. 

There were some positive findings for Juul in the survey,
according to the research report. 

Juul helped
almost half of its users who also smoke cigarettes cut down on
their cigarette consumption. About 16 percent stopped smoking

Some moved in the other direction. Of the nonsmokers, 20%
became smokers after using Juul. The report highlights this as “a
potential area of concern as the FDA is evaluating Juul’s
prevalence among youth and its role as a gateway to

CNBC has
that preliminary data from the government’s
National Youth Tobacco Survey found a 75% rise in teen
e-cigarette usage in the last year, to about 3 million
high-school users.

FDA Commissioner Scott Gottlieb
has said 

that new policies to regulate
e-cigarette usage will be put out by the agency by the end of
this year. The analysts said these policies may include moving
up the pre-market tobacco product application deadline for
e-cigarettes from 2022 to an earlier date, restrictions on the
range of e-cigarette flavors, and possible limits on

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