US vape stores pessimistic over disposables

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US Vape Stores Pessimistic
Over Impact of Disposable E-Cigarettes

But More Enforcement Against Rogue Retailers Could Help

US vape stores have suffered heavily from consumers’ shift toward disposable e-cigarettes, according to the latest survey of specialist vape retailers by ECigIntelligence.

84% of the stores surveyed reported a decrease in average monthly revenue, with those whose revenue was already small being the most likely to lose even more.

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.”

ENDS

About us

ECigIntelligence is the leading provider of detailed global market and regulatory analysis, legal tracking, and quantitative data for the e-cigarette sector worldwide. 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.

It is published by Tamarind Intelligence, which also produces CannIntelligence and TobaccoIntelligence.

Photo: Mike Petrucci

Barnaby Page

Editorial director

Before joining ECigIntelligence in early 2014 as one of its first employees, Barnaby had a 30-year career as a reporter and editor for newspapers, magazines and online services, working in Canada, the US and the Middle East as well as his current British location. He has edited publications covering fields including technology and the advertising industry, and was launch editor of the first large daily online news service in the British regional media. Barnaby also writes on classical music and film for a number of publications. Barnaby manages the editorial and reporting teams and works closely with the analyst teams, to ensure that all content meets high standards of quality and relevance. He also writes for the site occasionally, mostly on science-related issues, and is a member of the Association of British Science Writers.