Growth of the Market
Being a technology related industry, the vaping industry is bound to experience various technological boosts. Major players in the industry are investing heavily in creating newer and more advanced vaping equipment. This is great news to people investing in vape stocks as most users will be willing to purchase the newer equipment as they offer an enhanced vaping experience. Besides the market security, the advanced technology also boosts the reputation of e-cigs, good news to investors.
Producers of vaping equipment are also conducting further research on keeping the e-cigs safe. This effort is likely to help with state and local laws on vaping. If the research proves fruitful and safer e-cigs are produced, investors need not worry about laws against vaping.
The popularity of electronic cigarettes has hit the cigarette market quite hard. The number of people swapping out smoking for vaping is quite high, a situation that is leaving cigarette companies with less profits. To adopt to the dynamics of the market, various large cigarette companies are forming mergers with electronic cigarette manufacturers. These mergers are sure to make the e-cig companies even more powerful. Combining both resources and reputation makes investing in vape stocks a prudent move.
Prior to investing in vape stocks, it is important to consider both the positives and negatives. The main challenge that faces the vaping industry currently are the ever-changing laws and regulations on smoking. Being new to the market, governments are constantly changing their laws on vaping. While some are prohibiting vaping on public areas, others are imposing heavy taxes on the vaping products. This is a challenge that needs to be carefully considered when making in investment in the vape stocks to help you make the right decision.
2020 Vape Industry Update
The e-cigarette and vapor industry has been snakebit by a lot of stories about the dangers of vaping. For this reason, I'm staying clear of vape stocks all together. I don't even like to look at companies with vape stocks in their portfolio of brands because of the potential for lawsuits that could result in major financial setbacks, plus loss of cash flow. I personally think you are better off swing trading penny stocks than gambling on the future of the vape industry, but as always, that's my opinion.