Why some vape brands will survive FDA regulation
August 8th, 2016 brought the day that vaping advocates have long been dreading. The FDA issued new regulations that would treat e-cigarettes essentially like regular cigarettes and make products too expensive to buy and take thousands of small companies in the industry either right in the gutter or into the jaws of Big Tobacco. While some foresee the FDA’s regulation as destroying the US vaping industry as we know it, we believe that some brands will see this as an opportunity to come out on top. Here are a few reasons why.
80-90% of vaping products are going to disappear – that is inevitable. Many of the larger brands sell between 50 and 100 flavors of e-liquids on their websites and most of them are available in various nicotine strengths, giving them hundreds of different products under one brand. Up until now, there was no reason not to offer so much variety, but after the new regulations, these brands will be forced (due to financial limitations and cost of compliance) to sell only their best products – which may not be a bad thing!
The bigger vaping brands will continue growing and moving forward with 4 or 5 of their most successful products. While the lack of variety may be frustrating to some, the established brands will benefit from smaller competition and a simpler and easy-to-navigate range of products. The vapes left on the market will still be better than cigarettes, which signifies strong demand will continue.
Additionally, while the FDA regulations will undoubtedly stifle innovation in the US, it will not stop established brands from innovating in other markets around the world that have proven receptive and capable to vape innovation and high quality production (think China).
The smartest brands knew these regulations were coming and have been preparing for years in advance, fully aware of which of their products would survive, pass regulation and compliance, and continue to prosper. The future will undoubtedly bring about changes, but with it, new opportunities.
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