US Vape Industry Today: Makers Shift to PPE, Retailers Sell Drinks and Snacks

On May 14, Vapingpost reported that the coronavirus pandemic has had an uneven impact on the U.S. vaping industry, partly because of different regulations implemented by different states, and partly because businesses have responded in different ways.

 

In Colorado, the vaping industry has been struggling because vape shops are considered non-essential businesses in the state. As a result, two stores there have already closed, and manufacturer Jvapes E-liquid has also had to announce layoffs. However, the chain also operates stores in Arizona and Oklahoma, and those locations remain open.

 

To make up for losses caused by store closures, the company has been doing everything it can to increase online sales. Even so, its sales have still fallen by 30%. Founder Amanda Wheele said in an interview: “I believe my business will make it through this, but I suspect a large number of vape businesses will not be able to recover financially from a prolonged shutdown.”

 

In South Carolina, vape shops were initially not included in the state’s list of essential businesses. However, together with thousands of car dealerships, cleaning companies, and other businesses, multiple vape companies successfully won approval from the state Department of Commerce and were allowed to remain open.

 

In Washington state, some vape shops managed to stay open by reclassifying themselves as convenience stores, which are considered essential. According to the owner of one vape shop: “We’ve always sold Red Bull to customers for convenience. So we put some snacks on the shelves, and now we’re a convenience store.”

 

Retailers and manufacturers in other states have begun producing hand sanitizer and other hygiene-related products. Georgia-based VR Labs has started selling 60ml bottles of aloe hand sanitizer and pledged to donate one bottle for every two sold. Between March 27 and April 5, the company donated a total of 850 bottles.

 

In the UK, vape shops were deemed non-essential and were forced to close nationwide. As a result, many small independent vape businesses fear they may not survive, while their customers are worried about whether they will still be able to access smoking cessation support.

 

To survive, most specialist online vape shops, mixed online-offline retailers, and brick-and-mortar stores have reorganized their retail operations to offer home delivery services. Retailers have expanded warehouse space, increased customer service staffing, and set up online and telephone consultation channels for vapers and smokers.

 

Naturally, demand for online retailers has risen sharply. One retailer, Vape Club, saw its business grow by 150-200%. “Normally, when we face higher-than-usual order volumes, such as during Christmas, we increase staffing to cope. But in this situation, that wasn’t possible. Instead, we extended shifts and added weekend shifts,” said Managing Director Dan Marchant.