From a struggling industry several years ago to a growing sector across the world, the vaping industry has made economic strides with global market revenues forecasted to reach USD 32.11 billion by 2021. The growth was precipitated by several major occurrences in the global market in recent years including the introduction of technologically advanced products.
A typical vaping or e-cigarette starter kit includes a battery, a clearomizer or atomizer, and a charging component. Like many devices, these components are continuously going through a process of refinement as the industry moves forward. Aside from product advancements and growing global demand, other changes are expected to impact the vaping industry years from now.
As indicated in the report global sales generated by the vaping industry are expected to hit multi-billion figures, encouraging growth in new businesses. However, the industry is predicted to go through a competitive phase as more entrepreneurs enter the market. In fact, industry pundits pointed out that while the market has achieved growth over the years, the effects of market competition surfaced with the opening of e-commerce sites, commercial stores specializing in e-cigarette and vaping products, and consequently, the closure of establishments that were not able to survive the competition.
Development of Restrictive or Supportive Regulations
Aside from market competition, regulatory enforcement will also shape the industry. Last year, the Food and Drug Administration issued a ruling extending their monitoring role over e-cigarettes, vaporizers, vape pens, and other products categorized by the agency.
Excluding certain related accessories, FDA’s regulatory power covers processes involved in developing and marketing these products, from manufacturing, distribution, and sales, to promotion. The regulations also require the sector to produce supportive research that could help the agency decide if these products would remain in the market way past August 8, 2018. If not addressed, the regulations could impact the continuity of the industry. However, legislative moves have been introduced this year to remove e-cigarettes from the restrictive FDA ruling.
Technology companies are expanding their sights on the vaping industry. Just recently, Apple applied for a product patent for a vaporizer technology. Since this is beyond Apple’s usual area of focus, the information fueled speculations that the tech giant is also planning to go into the cannabis industry.
There are other industry-related tech companies that are focusing on refining the current vaping devices available in the market. One of these innovations is the development of a more stable high-performance battery source made from glass. Once perfected, the product is expected to bring consistency and safety in powering vaporizers, vape pens, and other e-cigarette related products.
Growth from the Cannabis Industry
The medicinal and recreational cannabis industry sales are projected to reach $35 billion in 2020 should all states pass laws in support of legalizations. While not all states have moved forward to this next step, still, the cannabis industry has exhibited growth across affiliate businesses with sales of around $6.7 billion in 2016. This industry growth also paved the way for the use of vaporizers and related devices for cannabis products, specifically, by medicinal users looking for a way to discreetly consume the product.
Demand for Mobile and Connected Devices
Aside from the introduction of mobile and portable features into e-cigarettes and other vaping devices, customization will also dominate the market of the future. Also, with the increasing popularity and mainstream application of the Internet of Things (IoT), vaping devices that are connected to a smartphone will also become more accessible to customers. The concept involves having an application downloaded into the smart gadget so product users will be able to control and customize their vaping experience.
As the vaping industry moves forward, changes in technology, regulatory framework, the growth in the cannabis sector, and other factors will shape its development and sustainability. And like any high-growth industry, global and local demands will also determine its future.