As the vapor industry grows, some vape companies are making increasingly sophisticated products as they adopt business models reminiscent of the tech giants of the world. Why the change? As CNBC reports, they’re looking to grow sales and what better way than to mimic the best and biggest tech companies out there?
How big is the market exactly? One estimate made by the Winston-Salem Journal put last year’s vape sales at potentially $2.5 billion. And this doesn’t even include e-cigs.
According to Dr. Dabber president Pantelis Ataliotis, one of the reasons why the vapes are getting more advanced is due to the increase in competition from manufacturers, both established and startup. Ataliotis was quoted by CNBC as having said that it is simply “getting tougher to stand out in the crowd” with anything shy of a premium vape. No longer will a standard cut it, not with all of the competition that has flooded the lucrative market once filled with low-cost products that are increasingly being replaced by high-end products that do more and not surprisingly – cost more.
“I think the reason you’re seeing more premium vaporizers on the market is because it’s getting more competitive. It’s getting tougher to stand out in the crowd…”
Then you take KandyPens and its founder and CEO Graham Gibson for example. The company has used aggressive marketing that has landed them full-page advertisements in such publications as Rolling Stone. And then there are their various endorsements from celebrities and the like. So it is perhaps no surprise that their sales last year, according to Gibson, reached a whopping $6.5 million.
What do you think of the increasingly sophisticated vaporizers we’re seeing hit the market each year, is all of the competition that’s driving it a good thing? We sure think so- but we want to know what you think. Chime in with your own thoughts in the comments section below.
Is the vapor industry growing? There can be no question about it, the industry is absolutely on the incline and according to a forecast by Bonnie Herzog, an analyst at Wells Fargo, the industry is poised to see growth this year to the tune of some $400 million. That is, without doubt, a lot of money. And meanwhile, the tobacco industry that it’s undoubtedly disrupting is on the decline. According to another forecast by Herzog, who was quoted by the Winston-Salem Journal, the tobacco industry will decline by 3.4 percent this year.
Now forecasts aside, if you somehow thought that big tobacco was unaware of the decline they’re facing, think again as many leading companies in the industry have already begun to hedge their bets by investing in the other side – the vapor industry. Taking Reynolds American Inc. as an example, the tobacco giant, which British American Tobacco PLC somewhat recently purchased a $49 billion stake in, the company has opened up a subsidiary known as RJ Reynolds Vapor Company. Haven’t heard of them? They’re the same company behind the popular Vuse brand of electronic cigarettes, which is one of the leaders in the e-cig space. And they’re certainly not the only ones as Japan Tobacco International (JTI), another leader in the tobacco industry, has invested heavily into the U.S.-based vaporizer startup formerly known as Ploom, which is now known as Pax Labs. This is the same company, for those who don’t know, that’s behind the popular Pax line of portable vaporizers.
As reference, the Pax vaporizer line was spun off from Ploom and the Ploom brand and its Ploom Pods were acquired by JTI. The Pax vapes are now manufactured and sold by Pax Labs. Currently, there are three Pax vaporizers: Pax 1, Pax 2, and Pax 3. Version 1, which was originally called the Pax Vaporizer, is know known as Pax 1. It was the first in the series of Pax vaporizers – the one that started it all.
The Vuse brand currently maintains possession of approximately one-third of the U.S. e-cig market, Benzinga reported earlier this year.
What do you think, is the vaporizing industry going to surpass the smoking industry? Let us know what you think in the comments section below.