Pessimism Roles Over US Vape Market
Vape stores in the United States are pessimistic over the impact of consumers moving to disposable vapes, according to market analyst expert ECigIntelligence, but increased enforcement against rogue retailers could help them
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by Dave Cross
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Vape stores in the United States are pessimistic over the impact of consumers moving to disposable vapes, according to market analyst expert ECigIntelligence, but increased enforcement against rogue retailers could help them. A survey conducted by ECigIntelligence reveals that 84% of the stores reported a decrease in average monthly revenue, with those whose revenue was already small being the most likely to lose even more.
Leading market analysts ECigIntelligence say, “increased competition, changing consumer tastes and the ascendance of disposable vapes – which are available from many other outlets, such as gas stations and convenience stores – were cited as the biggest reasons for declines in revenue. Misinformation about vaping was also seen as a major factor, as in other recent years. ECigIntelligence has been surveying US vape stores annually since 2016.”
However, vape stores were also seeing their own revenue from disposables increasing, with these products now accounting for about 33% of income in the ECigIntelligence survey, published earlier this summer.
All the stores surveyed had processes in place to prevent underage sales, and nearly half had initiatives to reduce the environmental impact of vapes.
Outlook for the sector
“The outlook for the vape retail sector is extremely pessimistic,” said Jonathan Darnell, the ECigIntelligence analyst who authored the report. “Retailers were already having to cope with several issues including negative perception of their products and the unusual regulatory landscape in the United States, where most products on sale are technically illegal.
“Now the growth in the disposables market is not only heightening concern over youth vaping again, but also affecting vape stores’ revenue directly.”
However, added Darnell, the situation could change. “There are signs of a crackdown by regulatory authorities on illicit vapor products that lack authorisation for legal sale. Non-specialist retailers have become a significant channel for illicit products, many of them unlicensed and with no tax paid on products, which drives prices down.
“Vape stores themselves are already subject to frequent enforcement action by regulatory authorities – based on our survey, close to 50% experienced this in the previous year. But more extensive enforcement action against these other retailers may provide a ray of hope for the vape store channel.”
ECigIntelligence is the leading provider of detailed global market and regulatory analysis, legal tracking, and quantitative data for the e-cigarette sector worldwide.
The organisation says: “We provide our clients with the tools to navigate this fast-moving sector, tailor their business strategy, optimise resources, and make informed decisions. Our global perspective on the international vape sector offers valuable data such as market trends, key players, regulatory obligations and industry dynamics.”
ECigIntelligence is published by Tamarind Intelligence, which also produces CannIntelligence and TobaccoIntelligence.
Photo Credit:
Photo by Mika Baumeister on Unsplash
Dave Cross
Journalist at POTVDave is a freelance writer; with articles on music, motorbikes, football, pop-science, vaping and tobacco harm reduction in Sounds, Melody Maker, UBG, AWoL, Bike, When Saturday Comes, Vape News Magazine, and syndicated across the Johnston Press group. He was published in an anthology of “Greatest Football Writing”, but still believes this was a mistake. Dave contributes sketches to comedy shows and used to co-host a radio sketch show. He’s worked with numerous start-ups to develop content for their websites.
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