Vape Shop Sales Surge to Record Highs in 2015
If you’re looking for a smart investment opportunity, American vape shops might be a safe bet. According to a newly published study, brick-and-mortar based vape sales have reached an all time high in late 2015. The average store is bringing in $26,000 per month as the year comes to a close.
The study comes from the 2015 Vape Shop Index, a compilation of data from Ecig Intelligence, Roebling Research, E-Cigarette Forum, and SFATA. After surveying 540 vape shops in 42 states, the results came together in a comprehensive look at what is happening in the nation’s typical small town vapor stores.
“This really is the first time that the industry will have detailed independent data from vape shops, where much of the growth in the sector is now occurring, reaching more than $1.5 billion in annual revenue,” said Tim Phillips, CEO of ECigIntelligence. “As consumer preferences evolved toward open system tanks and e-liquids, we saw a need for accurate data to help shop owners better compete in today’s marketplace.”
The survey revealed that vape shops bring in the majority of their income from eliquid sales. The most popular nicotine level is surprisingly low with 50 percent of eliquid sales falling in the 3 to 6mg/ml range. Almost half of the stores also sold products online to diversify their revenue.
Steve Hong from Roebling Research predicted vapor stores would only continue to thrive in the coming year. “As the vape shop channel continues to mature, we’ll probably see more consolidation as established vape shop retailers continue to grow and expand their businesses,” he said. “There’s no doubt this channel is driving the broader category and we expect the channel to grow even bigger next year.”
The survey also asked owners how they felt about potential FDA regulations and surprisingly 98 percent said they would be supportive if the regulations were “appropriate or reasonable”. However, the vast majority of owners (67 percent) noted that the current regulatory approach would be harmful for their businesses.
Cynthia Cabrera, Executive Director of SFATA, said businesses have a legitimate reason to be worried about regulations. “Anything onerous, such as the FDA’s pending final rule, could seriously impact tens of thousands of jobs.”
Even with uncertain regulations looming, 76 percent of vape shop owners expressed optimism about the progression of the industry and felt hopeful for continued growth in the future.
Do you frequent your local vape stores or do you prefer to buy your vapor supplies online?