The Vaping Industry: What The Banks Aren’t Telling You
What Will Be…
If ever there was an industry steeped in mind blowing success, it’s been the Vaping Industry. From the moment E-cigarettes and vape pens showed up on the scene in 2007, vaping has been embraced globally by millions of adults and teens looking to enjoy cigarette smoking, without the obvious health pitfalls or in many cases, appealing to those wanting to quit smoking altogether and viewing vaping products as a safe and easy helping hand in this endeavor .
Huge Profit Margins
The immense popularity attributed to vaping products of all kinds, has resulted in the United States market alone, projected to reach a profit of $16.5 billion by 2024 as well as global profits forecasted at no less than $53 billion.
Vaping Related Illness Epidemic
Unfortunately, these profit related predictions can no longer be relied on, due to the rising epidemic of vaping related illnesses and deaths that have recently occurred. In the United States, we have seen more than 2000 people become ill with some form of lung disease, resulting in seven deaths that we know of, all due to vaping related activities. Also reported, are the over 2500 vaping related injuries that have occurred in the United States, resulting in over 50 deaths; most of those involving young men in their teens and twenties.
Sounding The Alarm Bell
Up until recently, the Vaping Industry has been operating with very little government involvement or interference. However, now that the death and illness statistics are growing at such an alarming rate, both federal and state governments are taking more of an interest and stand in regulating the Vaping Industry. For instance, the Trump administration has just announced that it will ban the flavoring of E-cigarettes. Flavors such as mint, fruit, desserts and candy, all meant to appeal to young people, will no longer be acceptable. Also banned are large, tank-based vaping devices that generally appeal to the adult population. The ban on these popular items could very well affect projected profits for the industry. Many states have enacted their own bans on e-cigarettes regarding flavoring, as well.
In addition, in 2016, the FDA gave E-cigarette manufacturers until 2020 to apply for authorization to sell their products. This means they must prove their products are “appropriate for the protection of public health.”
The Good News
Although things may sound somewhat grim at the moment, all is not lost for the Vaping Industry. Although most flavors were banned for E-cigarettes, the Trump administration has not banned two very popular flavors, menthol and tobacco. The partial ban also allows for vaping customers to mix flavors in open tank systems at vape shops. Thus, sales should continue to climb in these areas.
Also good news for the industry, many of the President’s advisors, along with conservative groups and lobbyists, do not want rigid regulations to be put into place so the administration should most likely bow to their wishes. In fact, polling indicates that a large segment of the population does not support the Vaping Industry being tightly regulated and controlled.
Business As Usual
So for now, as we wait to see what the future brings, business goes on as usual. Time will tell if more changes will need to be put into place. In the meantime, there are many supporters on both sides of the issues but certainly enough customers to keep the Vaping Industry up and running successfully.
If you’re a start up vaping business, in need of a merchant account, let us help you get it at a very fair price. We’re extremely versed in all Vaping Industry rules, regulations, issues and occurrences and once you’re business is up and running, we’ll continue to partner with you to keep you apprised of any changes that may affect your business directly and how to successfully navigate them.
Find us at: FirstCardPayments.com
Joyce Hope is a writer who specializes in merchant accounts. She has worked for First Card Payments since 2017.