The vaporizer and the vapes are one of the fastest growing markets in the USA today. Vaping is simply a method that allows a consumer who previously had a cigarette to inhale vapors from a device without actually smoking a cigarette. Vaporizers can come in various sizes and shapes and they are available in many different kinds of flavorings. Most Vaporizers are small and compact but there are portable devices that provide a larger amount of vapor for the same amount of room.
The vaporizer and the vapes have both were used by smokers to quit smoking. The former is used to help smokers get over their addiction to tobacco while the latter is used to help with symptoms of withdrawal when a smoker decides to try to stop smoking. A very interesting phenomenon has started with the increase in the amount of Vaporizers on the market. There are now so many vaporizing devices on the market that it would be impossible to list them all in this article.
Research methodology for a potential market such as the vaporizer and the vapes is very important. One of the key market players include the vapor distributors. There are two different types of distributors including the open market and the closed market. The open market places vendors in the direct contact of consumers and allows them to sell to customers directly, however in order to qualify as an open vendor you must engage in an extensive marketing research and develop a solid reputation amongst your target market.
Due to the lack of market research the open market segment suffers from a low volume of new entrants. Although the vape market has experienced a large rise in sales and popularity, most distributors are still relatively new to the industry. This is also due to the fact that the price difference between the open market and the regulated market is very significant. As more distributors emerge, the differentiation between the regulated tanks systems and the vaporizers will become less until we reach a stage where we no longer differentiate between the two.
In order to understand the emerging differences between the regulated vaporizers and the unregulated liquids the first segment to look at is the price. Most distributors charge prices in the region of $50 or higher and do not decrease their price during this time. The difference in price can be attributed to the fact that the market is new to the industry and thus products are being sold at inflated prices. Most consumers will be purchasing these devices for personal use, which means that prices will remain high. However, there are many distributors that have the intention of expanding into the e-liquid segment and these devices will start to come down in price as they grow their business. If you are looking to invest in the e-liquid segment then you should consider buying from a distributor with a reputation and a proven track record in the industry.
Regulation is another key point when it comes to vapor products. There are two main bodies responsible for overseeing the manufacturing and distribution of vapor products in North America. These organizations are the FDA (Food and Drug Administration) and the TCA (Tobacco Advertising & Promotion Act). The TCA is the main body responsible for regulating flavorings used in e-liquids and they have the ability to ban any product deemed to be harmful to consumers. Since vapor products are not generally considered drugs, they are not controlled by the FDA, which allows them to sell flavors that some people may find to be too appealing. Some flavors that have been banned include menthol and peppermint.
Analyzing the market research data reveals two key points about the evolving e-liquid sector. One of these points relates to the growing number of distributors and the increasing demand. According to the market research the increasing demand and the increased profit margins are forcing many distributors to re-introduce products into the market. This is creating a competitive advantage for many companies. It also leads to better pricing for consumers.
European companies have been historically less volatile than North American companies in regards to new products, rising prices, and taking risks. In terms of vapor products the emergence of the Chinese manufacturers has created a situation where European companies have been forced to re-evaluate their strategies. According to the Vape Market Report there are two types of European manufacturers: the German companies that are heavily leaning towards the pharmaceutical side and the Italian companies that are more into the cosmetic and food industry market. The German companies tend to be more price competitive. As the European Union attempts to reform its smoking laws, the wholesale, European cigarette market will most likely experience regulation changes that North American companies are currently experiencing.