Five reasons to invest in vape stocks


Vaping has inarguably been one of the hottest talking points of the past decade. Again and again, e-cigarette have been proven as an effective smoking cessation tool. So, it comes as no surprise as to why so many consumers are choosing to make the switch from traditional cigarettes to vaping devices. Due to this increase in users and manufacturers, many e-cigarette companies are now publicly traded. 

Whether you vape or not, as an investor, it’s always worthwhile to diversify your portfolio to maximise your returns. Here are five of the most convincing reasons why you should invest in vape stocks today. 

The Vape Market Is Growing Exponentially

With over 20 million vapers around the world and a global market projection of $84.43 billion by 2025, now is the time to invest in vape stocks. In the coming years, the e-cigarette industry is expected to expand at a CAGR of 17.65% from 2021 to 2025. By 2030, this figure is expected to hit a staggering $182.84 billion. Looking at these numbers, it’s evident that vaping isn’t going anywhere soon. 

The Tobacco Market Is Declining

Educational campaigns and stringent government regulations such as the indoor smoking ban in the UK have driven down cigarette usage from around 1.397 billion people in 2000 to 1.337 billion in 2018 (a reduction of approximately 60 million) according to the World Health Organization. By 2025, WHO estimates that there will be 27 million fewer smokers in the world. 

New taxation and graphic standardised packaging for cigarettes has also led to a decline in cigarette sales. One UK study from the Tobacco Control Research Group conducted in 2015 to 2018 reported that before legislation, cigarette sales (calculated by individual cigarettes) were declining by 12 million a month and rose sharply to 20 million a month after the new packaging legislation was put into effect. 

Consumer Confidence Is Increasing

After their initial roll out, e-cigarettes were criticised for their safety and compliance, with many believing that vaping devices were as harmful as cigarettes. More and more researchers are proving sceptics wrong – in fact, one recent study from University College London has evidenced that e-cigarettes are not used as a gateway to smoking among young people.

Alongside the social and medical perspectives on vaping, the rules and regulations surrounding e-cigarettes are continuing to improve across the globe. This means that consumer confidence is growing, and sales are increasing in tandem with this.

E-cigarette Technology Is Advancing

The vaping world is constantly moving forward. Over the past two decades, the e-cigarette industry has seen monumental advancements in technology, and each year, more and more brands are entering the market. Vape technology is only going to get bigger and better, making vaping more appealing to users who are looking to quit smoking. 

Marijuana Laws Are Changing

In some countries such as the USA, people use vaping devices to smoke legal marijuna. There is now a growing number of manufacturers who offer vape devices designed exclusively for use with cannabis. 

Many other parts of the world are beginning to introduce and legalise medical cannabis in line with scientific evidence that it can help treat and support the recovery of certain ailments. By 2025, the global legal cannabis market is predicted to rise to $33 billion dollars worldwide

Summary 

The vape industry has grown substantially since its inception in the early 2000s, and is likely to continue as advanced technology, stronger regulations, and wider markets all continue to influence its performance. If there’s one investment you make this year, make sure that it’s vape stocks!