Can the vape industry last for a long time?

Can the vape industry survive for a long time? This is expected to be a concern for many vape manufacturers. After all, vapes are stuck with cigarettes, and cigarettes are a government-controlled industry and a major tax issue for the country. Vapes have been going on for more than a decade. The vape market in many countries is booming, and sales are rising year by year. However, the vape industry can still not see the market reaction for a long time. After all, the vape regulatory power In the government.

In recent months, many vape new ventures have received huge financing, which has made electronic cigarettes fire in the Chinese market. However, in the 315 nights of the past few days, vapes were notified, and the evenings pointed out that the electronic cigarettes exceeded the standard. Although there is no indication of which company's vapes were detected, it is undoubtedly a splash of cold water for the Chinese vape market.

So can vapes last for a long time? I think that this problem can only be predicted according to market conditions. After all, we cannot control the behavior of the government departments.

1, As shown in Figure  from the data, from 416 million US dollars in 2010 to 7.1 billion US dollars in 2016, the vape market has expanded 17 times in six years, and the annual compound growth rate is as high as 60.5%. Therefore, the vape market has developed rapidly in the past few years. I believe that this will be the case in the next few years. After all, there are still many people who have not yet released vapes.

2, China's market potential is large, in 2016 the vape market consumption scale is only 3.2 billion yuan, and in 2016 the total sales revenue of the cigarette industry is 1,370.6 billion yuan, China's vape market currently only accounts for 0.23% of the tobacco industry. That is to say, there are still a large number of smokers who may eventually become vape users.

3. Tobacco companies entered, In 2018, Altria acquired 35% of Juul's vapes for 12.8 billion. It can be seen that tobacco companies are optimistic about the development of the vape market and are no longer hostile to vapes. Even the industry that the enemy is optimistic about, can it be an industry without money?

Therefore, no matter from the current development of vapes, market potential, and the attitude of competitors, it can be seen that the vape industry is still very promising. Can a promising industry be a short-lived industry?