In the past couple of years, the vaping industry grew tremendously. Its user base increased to 41 million in the year 2018. As the cost of vaping devices declined, multiple users switched from traditional cigarettes to e-cigarettes and other vaping devices, bringing tremendous growth to the industry. All the projections and marketing forecasts predicted the continuation of this trend. However, in light of these predictions, bare estimations do not calculate or take into account any unforeseen events or conditions.
The outbreak of coronavirus is one such condition that wasn’t anticipated while projecting any market trends. It adversely affected the global market situations bringing economic slumps and toppling economies and industries in no time. The Vaping industry could not remain untouched by the market situation with several factors dictating its fortune.
The Demand of the Product
Gladly, during this pandemic, the vaping industry experienced a constant surge in demand. The demand chain is one of the critical elements that play a crucial role in stabilizing an industry's value. The continuous rise in demand is usually beneficial for the industry to thrive in the market. However, if the demand is not backed by adequate supply, it can adversely affect the product's prices, causing inflation.
Coronavirus is primarily a respiratory disorder, and WHO guidelines recommend the prohibition of tobacco cigarettes. This influenced many users to quit cigarettes and switch to vaping as a transitional option. Moreover, the loss of work during the lockdown condition is another reason for the huge demand in the vaping industry.
It is noteworthy that vaping products are not only limited to recreational use such as nicotine e-liquids or vaping top Sativa strains of 2020 through a weed vape pen. Many medicines, essential oils, and CBD vape oils are necessary medicines administered through vaporizers and vaping pens.
Supply Chain Management
Unfortunately, the demand surge was not backed by proper supply. This created skepticism about the vaping industry's potential to cater to demands. Disruption in the supply chain was due to multiple reasons. The shutdown in the local transportations and lack of workforce created several issues. Also, the restriction in the cross border movement halted the import of vaping devices.
The vaping industry also includes the components and the distribution channel fully dedicated or playing a partial role in buying or selling any vaping products. Comprehensively, it includes vape mods, atomizers, coils, and other components, including e-liquids used in a vaporizer.
China being the major supplier of various vaping products, could not meet the global demand. Being the first nation that was hit by the coronavirus, the early cessation of production, and locked down measures had an immense impact on the export of vaping related products. Still, you can visit your near canada weed dispensary and check out for some cheap buds.
The partial ban on the import of vaping products from China intensified the demand-supply gap in the industry. Lack of supply led to the stocking of the product that will broadly have major repercussions like demand and price inflation in the long run.
Other Market Forces That Impact Vaping Industry
Apart from demand and supply management issues, many small businesses suffered tremendously due to lockdowns. The vaping items were deemed nonessentials during the lockdown in various parts worldwide. Closing down small shops turned out to be a big misfortune for many small businesses. Many of them run on small profit margins and hugely depend on every day sales to run business activities. Sadly, they could not bear the financial losses and had to shut down the business.
Online businesses, however, encashed this opportunity and reported massive growth in the past couple of months. Business owners who were smart enough to adapt to the market's changing needs were able to withhold well. Some of them joined online businesses while others diversified by plugging into making sanitizers in their distilleries.
The Bottom Line
The lack of supply and poor logistics are the leading cause of concern for the vaping industry. The law and regulations that govern the vaping sector play a significant role in how well the industry flourishes in a place. Many nations, including Canada and Italy, followed a flexible policy by deeming vaping products as essential items witnessed growth. On the other hand, there is still a lot of speculation in the US where law varies from one state to another. Undoubtedly, the vaping industry holds a bright future. Economies can encash profits by catering to unmet demands. Depending on policies and reforms to invest in the ancillary industries can play a significant role in strengthening the vaping industry.