Vape and Tobacco Shops

Vape and Tobacco Shops Offer E-cigarette Makers Higher Margins

As of early August 2016, new FDA regulations took effect requiring e-cigarette manufacturers to prove their products meet public health standards. These new rules apply to manufacturers that began selling e-cigarettes before February 2007 and will now need to obtain FDA marketing authorization for existing and new e-cigarettes in order to continue selling these products. As a result, the cost of doing business just increased significantly for marketers in this industry.

Due to these new regulations and the increased costs associated with complying, manufacturers need to do all they can to improve the profitability and margins on existing products through channels where higher retail prices can be absorbed. While there is a fair amount of e-cigarette volume through online and c-stores, these channels tend to see strong price competition where consumers are seeking the lowest price options or may not be regular shoppers. Vape and tobacco stores by contrast are frequented by regular e-cigarette users that consult with store owners on the latest technological innovations or newest flavors and are willing to pay more for such innovations. This channel is key to understanding consumer preferences and market trends, but is difficult to track.

Electronic Cigarettes and Vaporizers in Vape and Tobacco Shops: U.S. Market Analysis and Opportunities, Kline’s first edition study on this market, will offer a comprehensive analysis of this retail channel and provide insights into consumer preferences and motivation to use e-cigarettes based upon in-depth research with vape and tobacco store owners. The report will provide an overview of this dynamically growing market and insights on regional distinctions in flavor and form preferences. Subscribers will learn about the size of this rapidly changing market, understand major trends, and estimate the expected growth rates over the next five years. The research also probes to understand what prevents current cigarette smokers from converting to use e-cigarettes. To learn more about this new study, please contact our team.

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