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Published on March 5th, 2021 | by Sumit Bhowal

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The Ultimate Guide on How to Invest In Vaping Industry

According to the BBC, there has been a steady increase in the number of vapers over the years, from approximately seven million in 2011 to over 41 million in 2018. That trend has translated to a sustained expansion of the global vaping market.

One of the reasons behind the global vaping industry’s expansion is medical experts’ continued efforts to market vaping as a safer and cheaper alternative to traditional cigarette smoking. Unlike many conventional nicotine delivery systems, vaping doesn’t involve combustion. Therefore, there’s no smoke production, which means that the vaper is exposed to minimal toxins.

With all the positive hype around vaping, it’s clear to see why many entrepreneurs are considering diversifying their investment portfolios in the vaping industry. But like many other sectors, success in the lucrative vaping industry requires a cautious approach.

Read on for a comprehensive guide on how to invest in the vaping industry.

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Ways to Invest In the Vaping Industry

1. Manufacture of Vape Products

One of the top ways to invest in the vaping industry is to start a manufacturing or processing plant for vape accessories. Essentially, the two major vaping accessories include the vaporizer itself and vape juices.

A vaporizer, also known as a vape device or an e-cig, consists of various components, including a mouthpiece, atomizer, and vape tank. You could decide to either manufacture some of these attachments or the entire vape device.

When it comes to best vape juice, there are tons of options you can consider. Originally, most vape juices had nicotine as one of their primary ingredients. But over time, the industry has witnessed the introduction of nicotine-free e-juices. For example, we now have e-liquids infused with cannabis extracts like cannabidiol (CBD), tetrahydrocannabinol (THC), and other herbal compounds.

Other vaping-related products you can choose to manufacture include wrapping, labeling, and packaging materials.

2. Retail of Vape Accessories

Besides the manufacture or processing of vape products, you could also invest in the vaping industry as a retailer of vape-related accessories.

To get started, you’ll need to set up an online vape store where you can offer various vape products. The main reason behind having an online presence is that most vapers still prefer to shop for their products from an online retail outlet.

As a retailer, there are numerous vape products that you can vend, including e-cigs and their attachments, vape juices, and even products that are often paired with vaping, such as beer.

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3. Distribution of Vape Products

Distributors are crucial to the supply chain of any commodity in that they serve as the link between producers and retailers or producers/retailers and the final consumers. The same is true for the vaping industry.

One of the best things about being a distributor is that the business requires minimal startup capital. That’s because you don’t necessarily need a warehouse or a depot. All you require is a vessel to ferry vaping products from one point to another. The introduction of ingenious concepts like dropshipping has reduced the need for warehousing significantly. With dropshipping, you only need to identify a reliable supplier of vape products and link them up with willing buyers without owning a shop yourself.

Another notable advantage of investing in the vaping industry as a distributor is that there are limited legal requirements involved.

Investing in Vape Stocks

Instead of starting up a business that manufactures, distributes, or retails vape products, you could invest in an already-established company that deals in vape products. In this case, you’d invest at the level of stock trading.

Now, there are two major types of vape stocks that you can purchase, namely small capital stocks and large capital stocks.

What are small capital stocks?

Small capital stocks refer to publicly traded companies whose market capitalization value is between $300 million and $2 billion. Examples of small capital stocks include Turning Point Brands Inc. and Vape Holdings.

Turning Point Brands Inc. focuses on both smoking and smokeless tobacco products. The company recently acquired Vapor Beast as its major e-commerce distribution outlet, the clearest indication that its future on the vaping stock market is bullish. If you’re looking to invest in a small capital stock that deals exclusively in vape devices and related attachments, then you might consider Vape Holdings. The company owns several notable vape brands, most of which it sells through its own Hive Ceramics brand. And for your peace of mind, Vape Holdings is listed on the National Association of Securities Dealers Automated Quotations (NASDAQ).

What are large capital stocks?

Large capital stocks have a market capitalization value of over $10 billion. Examples of large capital stocks include Imperial Brands, Altria Group, British American Tobacco, and Japan Tobacco Inc.

Each of these companies comes with a standout drawcard. However, they all pride themselves in their long industry presence and an extensive portfolio of vape brands.

By and large, note that investing in vape stocks may require that you familiarize yourself with the entire stock market’s nuts and bolts. Your success will significantly depend on how easily you can stay ahead of emerging industry trends. However, the good news is that there are lots of stockbrokers who are ready and willing to do the hard work for you in exchange for a reasonable brokerage fee.

Whatever you do, remember the golden rule of every stock investment – only risk what you can afford to lose.

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Establishing of a Consultancy Firm

We started by mentioning that the vaping industry has witnessed consistent growth over the past couple of years. We also pointed out that the main reason for sustained growth is the successful marketing of vaping products as healthier alternatives to traditional nicotine delivery systems.

But that’s not all – the industry is headed for even greater times ahead. That’s because vaping has since transformed from being a cigarette-cessation aid to a lifestyle.

But despite all these positive developments, many would-be vapers remain skeptical about the entire vaping concept. For such people, lots of questions beg for answers.

For instance;

Does vaping come with any real health benefits?

Is vaping risk-free?

What are the vaping laws worldwide?

How do you choose high-quality vape products and tell a reputable retailer from an unscrupulous one?

These are some of the questions you can answer by establishing a consultancy firm.

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There goes our comprehensive guide on the top ways to invest in the vaping market. Just remember that the industry is still evolving. So, to stay ahead of the competition, always endeavor to keep abreast of emerging legal and industry trends.

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About the Author

An Internet addict and a MASTAN , Also a lazy Freelancer . I don't try to reinvent the wheel I just like to soak things in Steroid's :p Thanks (y)



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