Despite the FDA’s new regulations and the U.S. Surgeon General’s weak attempt at criticizing the vaping community, the vaping industry is, as a whole, very strong right now. It’s growing by leaps and bounds every single year and looks like it’s poised to make a serious dent in the tobacco industry in the years to come.
As recently as just a few years ago, the vaping industry was pretty much non-existent. The technology that was used to manufacture e-cigarettes, e-juices, and other vaping products was still in development, and when people purchased products to vape, they never really knew what they were getting. As a result, the vaping community was small and pretty exclusive. It also didn’t make much money.
That has changed as vaping products have improved, and in 2015, Forbes reports that vaping brought in about $3.7 billion in the U.S. alone. That’s still nothing compared to the $92 billion that the U.S. cigarette market accounted for. But it’s also a lot more money than the vaping industry was generating in recent years. It’s a sign of strong growth.
That growth is expected to continue well into the future, too. While the FDA may have some vaping manufacturers—and vapers for that matter—concerned at the moment, the Research and Markets market research store just published a report that zeroes in on the expected growth in the vaping space. And it’s encouraging to say the least.
Here is what you need to know about how much the vaping industry is going to be worth soon and how it might affect you…
How Much Will the Vaping Industry Be Worth in 5 Years?
The truth is that no one can predict just how high or low the vaping industry will be by the time 2022 comes around. There are so many variables that could potentially affect the value of the industry by that time.
But according to Research and Markets report called “Global E-Cigarette Market Size, Share, Development, Growth and Demand Forecast to 2022,” the e-cigarette market is expected to climb to more than $27 billion by the time 2022 rolls around. This is based on a number of factors, including the growing health awareness surrounding vaping, the rapid advancement in e-cigarette technology, and the increasing number of vape shops around the country and world.
Does this mean that the e-cigarette market is definitely going to eclipse the $27 billion mark? Not at all. As we mentioned, things like the FDA regulations could slow the growth of the industry, at least in the U.S. But Research and Markets has done their homework and believes the industry is set to grow exponentially in spite of the challenges that lie ahead.
Why Is the Vaping Industry Going to Grow So Quickly?
Outside of the factors that we listed above, there are some other reasons why Research and Markets expects for the vaping industry to grow globally in the coming years. Specifically, there are several big opportunities that might lie ahead for those who are actively involved in selling e-cigarettes and other vaping products.
As people become more and more familiar with e-cigarettes and their potential health benefits, it will obviously open up a new lane for vaping manufacturers. At the moment, there are also many untapped markets around the world. Some countries have outlawed vaping altogether, while others have limited the products that can be sold. By opening up these markets, the vaping industry can increase its value.
There are also going to be more companies—including many major tobacco companies—that want a bigger piece of the vaping pie. These companies are going to invest time and money into vaping and make the industry more valuable. There’s also a chance that franchised vape shops will become a thing. If that comes to fruition, the value of the industry will reach new heights.
Will Vapers Be Affected By This Growth?
As the vaping industry increases in value, vapers will notice a big difference in it. Already, they are starting to see some of the advantages of having the industry grow. A few years ago, there weren’t as many vaping products available as there are today. But as the industry has added new players, the products have become more plentiful and have improved dramatically.
Unfortunately, there also may be some negative effects that are bound to come with the vaping industry’s growth. One thing that Research and Markets pointed out in their report was that bigger companies like Altria Group, Inc., Philip Morris International Inc., and Reynolds American Inc. are going to become bigger players in the market soon.
As those companies swoop in and try and capitalize on the popularity of vaping, vapers may notice a much more mainstream approach to vaping. The fun and excitement that came along with experimenting with vaping products will likely be replaced in many places by the stale approach that the bigger companies will take. More regulations and stricter production practices will probably be put into place.
That’s not to say that the growth won’t be good for the vaping industry. Vapers could enjoy better prices on vaping products due to the increase in competition. But it will certainly be interesting to see how the vaping community adapts to the expedited growth of the industry.
Could It Grow Even More Beyond the 5-Year Mark?
The amazing thing about the Research and Markets report is that it only tells a part of the story. While it points out that the vaping industry will grow to almost $30 billion in the coming years, it leaves out the fact that some industry analysts believe vaping could be a $50 billion industry by 2025. That is a lot of money and proof that vaping is on the up and up.
As we mentioned, there are some factors that could limit the growth the vaping industry is experiencing. There are bound to be peaks and valleys for vapers and vaping manufacturers alike. But it’s crazy to think of just how far vaping has come in such a relatively short period of time.
What was once a fledgling industry with few signs of growth is about to boom and become a true competitor to the tobacco industry and many other industries. Can you believe it?