Vape and E Cigarettes Market Condition during COVID -19by Thomas W. Consultant
A global pandemic, thousands suffering, restrictions on travel – this is what the Corona virus has ushered till date. But what about the vape market? Is the vape market going to flourish or decay? A vape market research report says the vape industry is inevitably going to burn from the flames of Coronavirus outbreak. Each constituent in the supply chain, especially, the manufacturers of vaping products are challenged because of failure to produce and deliver coils, pods and other vape hardware.
The widespread virus has left Chinese manufacturers with little option of resuming regular operations with absence of close alternatives. 90 percent contribution of the world’s e – cigarettes and vaping devices comes from a modest 1000 factories in China, says a vape market report. The ongoing break in operations shall delay the shipment of these vaping supplies.
The wholesalers are subject to an indefinite wait to procure a continuous supply of vaporizer products. As a consequence, the retailers await the worst and are stocking up abundant supplies to serve their customers. Needless to say, business costs are likely to rise, increasing the vape market size and passing these costs to the penultimate consumer who would choose to pay a small premium to buy his regular vapes.
The e-cigarette industry today is challenged in multiple ways. The first being the tantalizing outbreak, followed by government regulations as the next. Governments everywhere are trying to curb the usage of any such devices by minors. In the United States, an outbreak of a lung disease known as EVALI linked to vaping has brought this industry to questions. The US Centre for Disease Control and Prevention says 64 people have died due to EVALI as of February 4, with more than 2,700 people being hospitalised. China also has banned the sale of e-cigarettes online.
A rapid growth in the demand for e-cigarettes proved a lot of potential for entrepreneurs looking at benefitting from this industry. According to a report presented by Arizton, The global Vape Market Size will cross USD 61 billion, growing at a CAGR of over 14% by 2025. E-Liquids will have the highest market share. A decade ago, the concept of vaping merely existed to promote quitting smoking. However, the younger generation plunged because this added an X – factor. Befalling the pandemic, a lot of companies such as the start ups and small scale that majorly banked on online sales have been thrashed hard and are on the brim of bankruptcy. The shut down has led to tipping layoffs leaving many unemployed and struggling to make their ends meet. Snowplus, a large e-cigarette manufacturer has let go of almost 20 percent of its support staff. A whopping 50,000 employees had already been given the golden handshake in this industry.
“Cigarette smoking causes heart and lung diseases, suppresses the immune system, and increases the risk of respiratory infections,” FDA spokeswoman Alison Hunt said. The virus has thrown this industry under further waters. There have been mixed warnings by different agencies on smoking and vaping. It is speculated that the virus could especially be a threat to those who smoke tobacco or vape. ‘Smoking products such as water pipes often involve the sharing of mouth pieces and hoses, which could facilitate the transmission of COVID-19 in communal and social settings’, says WHO.
Normalcy is expected to gush in soon, with factories taking enough precaution to ensure health & hygiene which would include regular temperature checks, ensuring distancing and the compulsory wearing of the masks. 50,000 to 1,00,000 devices will be produced per month, once the factories reopen with sufficient manpower. But even as manufacturing will resume, the other challenges prevail. The health aggregators across the globe stand in unison in stating that this industry needs to regulate itself before it is banished.The fate of the Vape Market and the industry remains undecided for now, time will unfold to tell us what to expect.
Created on May 23rd 2020 18:17. Viewed 116 times.