The global e-liquid market is growing quickly. New data suggests that the market could reach $3.3 billion by 2027. According to a new study by Grand View Research, the market is expected to expand at a CAGR of 13.4 percent from 2021 to 2027.
Credit: Vaporesso
“The advent of e-cigarette products such as squonk mods and pod systems has increased its popularity and adoption in recent years. The rising demand for these products globally is expected to drive the market over the forecast period,” a press release states. “In addition, the general presumption that these products can reduce the risk of lung disorders is fueling the market. Moreover, the absence of the tobacco burning process that is often found in conventional smoking products is expected to drive the market in the near future.”
In terms of flavor, the menthol segment is anticipated to register the highest growth rate over the forecast period owing to increasing adoption among young people, especially in students, coupled with its availability at affordable prices, according to the report.
“In terms of type, the bottled segment is expected to register growth at a significant pace from 2021 to 2027. This can be attributed to the fact that bottles allow users to make their own e-juice by adding two or more e-liquids,” the report states. “In terms of distribution channel, the online segment is anticipated to register a significant growth rate over the forecast period as it provides customers with a wide variety of e-liquids.”
Regionally, Europe is anticipated to register notable market growth from 2021 to 2027. This can be attributed to rising awareness among individuals about the tobacco-free formulation of e-liquids, according to the report.
“Market players are focusing on mergers and acquisitions, collaborations, and partnerships in order to expand their distribution networks and build an international presence for their brands,” the reportstates. “For instance, in January 2018, Nicopure, a manufacturer of e-cigarette and e-liquid, announced a partnership with Vapоr Ltd., a distributor of e-cigarette and e-liquid in Bulgaria. Nicopure appointed Vapоr Ltd. as one of its distributors in Bulgaria. The partnership allowed the former to expand its brand presence in Bulgaria.”
Key players are increasingly investing in the marketing and distribution of their products owing to rising competition in the market. For instance, in July 2019, Turning Point Brands, Inc., a manufacturer, and distributor of consumer products, invested $3.0 million in the Canadian distribution firm ReCreation Marketing. Through the ReCreation Marketing platform, the company launched RipTide, an e-liquid vape technology, and a variety of Nu-X products in Canada.
British American Tobacco (BAT) has pilot-launched its first CBD vaping product, Vuse CBD Zone.
This new range is available in three e-liquid flavors—mint, mango, and berry—and two strengths—50 mg and 100 mg. Vuse CBD Zone is initially being launched Manchester, U.K., in convenience stores and online (online purchase is geofenced for Manchester residents). Further rollout plans are anticipated for later in the year.
“With the rollout of Vuse CBD Zone in Manchester, our unique multicategory portfolio now, for the first time, offers products that go beyond nicotine,” said Fredrik Svensson, general manager at BAT U.K. and Ireland, in a statement. “CBD vaping is a new category for us, and we will be using this pilot launch to gain key learnings about consumer and retailer experiences, combined with our extensive expertise and knowledge of vaping, to help inform plans for a potential nationwide roll-out of Vuse CBD Zone later in the year.”
UK adults spent close to £7 million on vape products between January and October of 2020, with nearly 3 million adults now vaping. These are just some of the findings of a recently released study by the Vype e-cigarette brand. Vype launched the study to discover which UK cities had embraced vaping the most.
The British American Tobacco-owned brand took a comprehensive look into the vape industry both on and offline, delving into which of the UK’s cities were the biggest buyers of their products, and where is home to the most physical vape shops in the UK.
Vype conducted a survey of 2,000 of the UK’s over 18 population, to explore the nation’s vaping perceptions and who is most open about their habit, according to an article in Retail Times..
London leads cities by sales
It’s no surprise that London leads the charge when it comes to top cities by sales, spending more than double that of Birmingham residents in the same time frame. In fact, purchases made by Londoners make up 40% of Vype’s total UK sales to date in 2020, and 83% of the sales from the top 10 biggest spending cities.
Looking at the offline culture, it may be surprising to learn that Leeds is home to the most bricks-and-mortar vape shops per square mile. The northern city has 18 vape shops per square mile, while London only just features in the top five with only 13 shops per square mile. Rounding out the top five are Edinburgh with 17 shops per sqm, York with 15 shops per sqm, and Sheffield with 14 shops per sqm.
When it comes to the products adults have been buying, the top selling flavours across the UK were consistent across England, Scotland, and Wales. Crisp Mint is currently leading as the best-selling Vype flavour, followed by Blended Tobacco and Dark Cherry. The only region this differs in, is Northern Ireland, where Crushed Mint is their best-selling Vype flavour. With the UK’s Menthol Ban implemented back in May, it isn’t surprising that varieties of mint are the favourites for online buyers this year.
Insight into attitudes around the UK
Around the UK, Vype uncovered a range of cities with positive sentiments towards the vapers of the population. It was discovered that adults in Brighton are the least affected by others vaping around them, with 43% of respondents answering that it doesn’t bother them when this happens.
While in Belfast, Vype found that people would be more likely to allow another person to vape in their home or car, with 23% saying they would – this is more than any other city! Belfast is also home to the largest group of adults who vape as an alternative to smoking (21%), followed by adults in Glasgow (also 21%).
To uncover the cities with residents who feel like their habit is most accepted, Vype also questioned the nation about their feelings of being judged. Almost half of Glaswegians (48%) say they don’t feel judged by others for vaping in public, and they are followed closely by adults in Nottingham (44%) and Liverpool (42%).
Liverpool is also home to adults who have vaped the longest – almost two thirds (58%) of respondents say they have vaped for three years or more. Adults in Liverpool are also the most likely to vape at their place of work, with 33% admitting to doing so.
Nearby in Manchester, over a third of respondents (39%) from the city do already or would consider vaping in the future – that’s more than any other city. With only three vape shops per square mile, it’s no wonder Manchester makes the top ten list for online sales.
Vocal about vaping
Two in five (40%) of the UK’s adult vapers are open about vaping, saying that everyone that knows them knows that they do. Females are more likely to be open about this fact, with 42% saying that everyone knows they vape, compared to only 39% of men saying the same. Of those truly vocal about vaping, the over-55s are the most open, with 78% saying everyone knows that they vape. Only 51% of 45-54-year-olds say the same thing – the next closest age group.
Looking at the cities which are most open about vaping, adults living in Norwich top the list, with 63% saying everyone knows they vape. They are closely followed by Southampton, with 62% of adults in the southern city saying the same thing. Residents in Bristol follow this with 56%, Liverpool close behind on 50% and rounding out the top five is Glasgow with 48% of vapers being open about their pastime.
Vaping gaining acceptance
Just under a third (31%) of survey respondents said it doesn’t bother them if someone vapes near them. In fact, 10% of respondents across the nation who don’t vape said they would still allow someone else to vape inside their home and car. Females are the least likely to be bothered by someone vaping near them – but only just. With 32% of women saying they didn’t mind people vaping around them, there was only 1% in it with 31% of men saying the same.
Looking into the differences between adult age groups, 45-54-year olds are the least bothered by someone vaping near them, with 35% of them saying it doesn’t matter to them. This group is followed by the over 55s at 33%, and the 18-24-year-olds at 31%.
Of all UK adults who would consider vaping as an alternative to smoking, it was the Bristolians who lead the charge, with 6% saying they would consider the option in the future. The same percentage of UK adults who live in Nottingham, don’t currently vape but are most intrigued by the variety of flavours.
Going smoke-free
The residents of Plymouth have taken up vaping the most lately, with the biggest number of new vapers – fifty percent of respondents from Plymouth have been vaping for less than one year. Plymouth is also home to the greatest number of vapers who only vape once a week too; three quarters (75%) of respondents from Plymouth said they only vape once a week. The next largest group vaping just once a week are living in Sheffield, where. almost a quarter (23%) of residents of this northern city vape once-a-week too.
Cardiff has the most residents that have been vaping for between one and two years (72% have) – way more than any other city. However, they are also the city which spends the least online but buy the most products in each purchase – almost 3 times as many with every online sale this year, compared to other cities. . However, as well as spending the least online, they also only have 1.4 physical vape stores per square mile to rely on too!
On the back of the research, Aftab Saleem, head of e-commerce, UK&I at Vype said: “it’s great to see that the biggest reason adult nicotine consumers are turning to vape products is that they are looking for a smoke-free alternative, followed by the fact they enjoy the taste. That certainly is represented in the UK’s top flavours, with classic flavours coming out on top across the board. We are glad to be giving consumers an alternative to physical shopping too to allow them to continue to choose an alternative nicotine product. Now more than ever we need to help consumers achieve their shopping goals in other ways, whilst some non-essential stores are closed for business”
For the last 10 months, convenience store e-cigarette sales have been slumping. According to Nielsen data, e-cigarettes sales are down 3.5 percent for the four-week period ending Dec. 25. The sector, mostly consisting of convenience stores since Nielsen doesn’t track vape shop sales, has been failing since the U.S. Food and Drug Administration (FDA) implemented its latest round of heightened regulations on the products on Feb. 6.
Credit: Timothy S. Donahue
Overall e-cigarette sales-volume growth has declined steadily since Nielsen’s Aug. 10, 2019, report, when it was up 60.2 percent year over year, according to a story in the Winston-Salem Journal. The latest FDA restrictions on the sector debuted Feb. 6. Those restrictions foremost required manufacturers of cartridge-based e-cigarettes to stop making, distributing and selling “unauthorized flavorings” by Feb. 6, or risk enforcement actions.
Top-selling Juul’s four-week dollar sales have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 15.6 percent decline for the latest report. By comparison, Reynolds’ Vuse was up 87.3 percent in the latest report and NJoy down 31.5 percent.
Juul’s market share dropped from 54.3% in the previous report to 53.8 percent. It was at 55.1 percent a year ago. Vuse’s market share slipped from 28.5 percent to 28.1 percent, while No. 3 NJoy was unchanged at 5 percent, and Fontem Ventures’ blu eCigs was unchanged at 3.6 percent.
Goldman Sachs analyst Bonnie Herzog has cautioned in her monthly reports in recent months that there has been increasing consumer demand for lower-priced traditional cigarettes during the pandemic.
Herzog referred to the trend as “downtrading” from many top brands. That trend could be offset somewhat by the scheduled $600 federal stimulus payment to most Americans, which could be released as early as this week,
Cowen & Co. analyst Vivian Azer also says consumer downtrading in traditional cigarettes “remains a central theme in the U.S.
FiscalNote Markets managing director Stefanie Miller said that the Food and Drug Administration under a Biden administration “is likely to begin working anew on nicotine cap regulations for cigarettes.”
“Because of likely inaction in Congress, we now expect the Biden administration to reopen stalled menthol/flavor regulations as well.”
The $908 billion federal stimulus package contains an element that affects the distribution of electronic-cigarette products, according to tobacco analysts. The Preventing Online Sales of E-Cigarettes to Children Act prohibits the U.S. Postal Service from delivering packages containing e-cigarettes. The bill also subjects e-cigarettes to other rules that currently govern online cigarette sales. The prohibition could go into effect as soon as 120 days.
“We see this policy as mainly advancing the trend we’re already seeing in the market — which is that the large, well-capitalized manufacturers will be poised to pay the costs to be in compliance with the new more burdensome policies,” Miller wrote. “Meanwhile, smaller manufacturers and retailers likely fall short and will be forced to exit the market.”
The U.K. Vaping Industry Association (UKVIA) is calling on the government to reconsider classifying vape shops as essential retail, as parts of the U.K. enter restrictions under tier 4 and with potential lockdowns following in the new year.
John Dunne
“It’s not just about providing a lifeline to vape businesses but also to vapers and smokers for whom vaping represents a life changing decision, especially at this time of year,” said John Dunne, director general of the UKVIA, in a statement.
“As smokers make New Year resolutions, we should remember that earlier this year Public Health England acknowledged the contribution played by vaping in helping smokers quit and the Royal College of Physicians has found that e-cigarettes are effective in helping people to stop smoking. Recent research has again highlighted that vape products are much more effective than NRTs [nicotine-replacement therapies] in helping smokers give up.”
Dunne said that vape retail stores are well equipped to be COVID compliant. “Our stores do not deal with the high volumes of traffic like other outlets and are easily able to control the number of customers in a store at any one time,” he said.
“We want to make sure that smokers who might be aiming to quit in the New Year, and those who already vape, can continue to gain access to vape devices, e-liquids, and specialist advice that our members can offer.”
Advocacy organization’s roots are based in giving consumer’s access to lower-risk nicotine products
By VV Staff
In the early days of e-cigarettes, the U.S. Food and Drug Administration (FDA) began seizing the next-generation products. In response to the federal action, a group of enthusiasts and dedicated vapers became concerned that consumers would lose access to the potentially life-saving technology. That led to the creation of the Consumer Advocates for Smoke-Free Alternatives Association (CASAA). Alex Clark, CEO of CASAA, said the organization soon started building an army of consumers dedicated to keeping vapor products on the market.
“We truly are a grassroots consumer organization,” explains Clark. “We speak from the heart. And it is our needs as consumers, as people who are choosing a better path in the way that we consume nicotine and tobacco products; that’s where we’re speaking from, and that’s what sets our policy agenda.”
Speaking during the Global Tobacco & Nicotine Forum (GTNF) in late Sept., Clark disclosed that CASAA does accept donations from a variety of stakeholders, including industry stakeholders, but the organization does not have any policy, legislative messaging or financial agreements with any of its supporters. Clark says that the conversation surrounding vaping is centered in harm reduction and that is the mission of CASAA.
Alex Clark / Credit: CASAA
“Vaping … has become this conversation about tobacco harm reduction, [it] is a consumer-driven movement. I don’t think there’s anything groundbreaking in that statement,” he said. “But I bring it up because I believe—and I think many of us believe—that the industry and policymakers need to be reminded of that, that as people who used to smoke, we have endured years of other people telling our story.”
CASAA grew as a community organization through its “tight feedback loop” between consumers and independent manufacturers. Clark likened the early days of the not-for-profit organization to the local food movement, where “if you wanted to know where your cheeseburger came from, you could drive down the road” and visit the farm.
“I think we can all come to embrace that spirit and that side of the industry as an asset, not necessarily something that needs to be regulated to within inches of its life,” Clark said. “As consumers, we are very deeply afraid that is what’s going to happen. That as larger firms are able to make it through the [premarket tobacco product application (PMTA)] process, that we [will] lose that very important retail experience to be able to walk into a vapor shop and learn about the products, but also discuss the challenges that we’re facing in transitioning away from smoking.”
Clark says that a major concern for CASAA and its supporters is that the U.S. Food and Drug Administration (FDA) PMTA process is too expensive and arduous for small business owners. He says the organization worries that if only large tobacco companies can sell vapor products, consumers will lose the ability to have a place to learn and understand the choices available, through different types of products, to help them stop smoking.
Clark mentioned a study that evaluated the long-term success rates of quitting smoking for people who visited specialty vape shops versus people who bought their products at convenience stores. That study found that consumers that visited vape shops were more successful at stopping smoking. “They were more likely to transition completely and they were more likely to stick with the products for longer,” said Clark.
Because of the success vape shops have had at helping people quit smoking, they began to move away from the stigma they carried in local communities early on as being businesses where “potentially unsavory elements go to get their drugs,” according to Clark. He says that, today, vape shops are seen for what they are: a contact point for public health messaging and people who smoke. “People who are looking for a way to move away from combustible tobacco visit vape shops, and it’s a very casual setting,” he says. “It’s a place where people can feel safe, and welcome, and being able to just share our stories with one another. It is very helpful, and it really looks a lot like a community support [group for smokers].”
Clark said this distinction is important for regulators and anti-vaping groups to understand. Smokers began making the decision to quit using cigarettes by switching to vapor products of their own accord. There was not a government agency telling them that e-cigarettes had the potential to help them quit deadly smoking and small, family-owned vape shops is where the conversations and mass conversions began.
“We have made this decision on our own, which is a bit challenging to the dominant narrative painting people who smoke as victims. I, honestly, don’t feel like a victim,” he says. “I started smoking in the mid-90s. Certainly, I was subject to all kinds of messaging about why I shouldn’t smoke. Not only why it would be negatively affecting my health, but why it was essentially a character flaw and I was a bad person.”
Clark says vape shop owners need to help keep vape shops available to smokers by taking steps to continue to change people’s perceptions of them. Owners need to keep their shops clean and sanitary. Don’t have such a thick cloud of vapor when opening the door that potential customers are driven away. Vape shops should have an open and welcoming environment.
“You need to have a place for your customers to talk with one another. People behind the counter need to be very knowledgeable about the products that they are selling. Regulations [need to allow] people [to] have candid conversations about these products. As it stands now, I think even sharing your personal story about making the switch while standing behind the cash register could get people into a lot of trouble,” he says emphatically. “There’s a lot of room for regulations to improve in terms of allowing people to receive important information and also the education that needs to happen among people working in vape shops.”
People often internalize messages that are intended to encourage them to change their lives for the better, according to Clark. He says people also internalize messages about being deficient. Some of the rhetoric surrounding vaping and the misinformation about its harms is detrimental to public health. Vape shops create an environment where people feel comfortable discussing their goal of quitting cigarettes. Anti-vape groups, however, are putting these “safe zones” for smokers in jeopardy.
“We have already seen the legislative agenda of the anti-vaping, anti-nicotine campaigns which is to go after flavors, which very obviously shuts down vape shops and takes away that very important element of providing a space for people to come together and support one another,” Clark told attendees. “We must be prepared to take on these fights at the local and state level.”
Fighting the types of legislative challenges that the vapor industry is facing is complicated. Clark says that when attempting to tackle many legislative issues in the United States, it is like dealing with 50 different countries. “Certainly, you can see this in our patchwork of responses to the [Covid-19 pandemic],” he says. “Within those 50 countries, we have 39,000 local governments and all of these are potential pressure points where anti-nicotine activists will promote anti-harm reduction policies. If we don’t stand up for ourselves, we can’t rely on other people to do it for us and we cannot surrender our voice to either anti-tobacco activists or the tobacco and nicotine industry.”
U.S. President Donald Trump signed a $2.3 trillion coronavirus relief and government funding bill into law Sunday night, averting a government shutdown that was set to begin on Tuesday.
Initially, Trump had refused to sign the legislation, calling on Congress to increase stimulus payments from $600 to $2,000 and to get rid of “wasteful and unnecessary items.” The president signaled in a statement Sunday night that he signed the coronavirus relief bill only after securing a commitment for the Senate to consider legislation to increase stimulus checks.
For the nicotine industry, the bill is significant because it contains a provision prohibiting prohibits the U.S. Postal Service from delivering e-cigarettes.
It also subjects e-cigarettes to other rules that currently govern online cigarette sales. Among other things, online retailers will be required to use private shipping services that collect an adult signature at the point of delivery, collect all applicable local and state taxes, and send each taxing state’s tax administrator a list of all transactions with customers in their state.
Critics said the legislation would place a considerable burden on vapor companies. Increasing cost and paperwork.
The new rules could go into effect as soon as 120 days.
The U.S. Food and Drug Administration’s (FDA) dreaded deadline for its premarket tobacco product application (PMTA) has come and gone after multiple delays. With all that’s happened this year, it may have gone unnoticed for many. Rest assured that the process of submitting a PMTA has been long and tedious for manufacturers and vendors alike, and they have been working hard to ensure that reduced-risk products remain available for as long as possible.
Many companies have been working tirelessly to submit their applications, but the process is fairly opaque and uncertain. The filing of the PMTA does not ensure FDA acceptance, and each product must be filed separately. Currently, it is largely unknown which specific products have been submitted for FDA approval.
What is known, however, is which companies intend to submit or have already submitted a PMTA and how far along they are in the process. Keep in mind that being further along in the approval process is not necessarily an indicator of success. No vapor company at the time of this writing has received FDA approval for any product, and the length of time each submission will remain within the approval process is unknown. With so many unknowns, it can be difficult to predict which products will be legal to carry, if any. By looking at which companies are taking part in the PMTA process along with their histories, one can make reasonable assumptions as to which direction the vapor industry will begin to sway.
First, the bad news. Given that each PMTA is only valid for one “distinct new tobacco product,” and that even the smallest difference in the design of a product could warrant an entirely new SKU, it’s only reasonable to assume that there will be massive consolidation of vapor products. Products that are too similar will need to reconcile, either by being discontinued or redesigned. Even identical products with different colors, flavors, resistances or nicotine strengths could be considered separate SKUs, with each requiring its own PMTA, which has proven to be prohibitively expensive.
The massively varied choices that vapers have in products is undoubtedly going to shrink, but by what degree? A mod is considered one SKU, and an atomizer or tank is considered another. If the mod requires separate batteries, those are also considered an SKU, which requires FDA approval. Said batteries require a charger; that’s another SKU. If the mod and the atomizer come as a kit, that would yield yet another SKU. If the atomizer has three coil options of different resistances, that could require three separate PMTA applications. Clearly, this can spiral out of control quickly, so it’s expected that companies will need to streamline their product offerings.
Two parallel philosophies have been playing out over the past several years. One is to throw everything at the wall and see what sticks. Several companies have been releasing an overwhelming number of products in quick succession to try to get a better feel for what works and what does not. PMTAs are expensive, and many companies have adopted the “measure twice, cut once,” mentality. The past 10 years or so have allowed the industry to innovate, unimpeded by government regulation. This innovation naturally plateaued to a point where vapers have enjoyed a few years of refinement.
The technology seen today is not much different from the technology introduced three years ago. The difference is that today’s products have gone through a process of refinement due to the growing population of vapers providing feedback with both their voices and their wallets. It’s been a completely free market up until this point, and while manufacturers have been steadily improving their products, now is the time to lock in the best of the best and commit to the long term by submitting PMTA applications.
The other philosophy is to streamline the product offering, and this can be seen with the popularity of proprietary systems. For example, 510 devices have pretty much stagnated in popularity while pod systems have seen a boom. If a 510 device is compatible with a thousand 510 atomizers, and vice versa, that’s an impossible number of PMTAs, and without an example of a product that has undergone the process, it would be a huge gamble to try to sell the FDA on a device that is compatible with products outside the applicant’s ecosystem.
The prospect of a device such as a 510-compatible atomizer, which is ripe for facilitating the rise of black market mods, could invalidate the PMTA process on that prospect alone. Not only would the applicant be taking a larger risk by submitting a PMTA for a 510 device, but he would also be complicit in the assumed knowledge that he won’t see a return on that PMTA investment if the end user chooses to go outside said applicant’s ecosystem for complementary products. In short, manufacturer X isn’t going to shell out hundreds of thousands of dollars to submit a PMTA for a 510 mod if vaper Y is just going to turn around and buy an atomizer off the black market.
The most likely scenario is that each company is going to submit PMTAs for a line of products that keep the customer within their ecosystem. Whether that’s one type of product or several remains to be seen, but it only makes sense for any company to want to see the highest return on investment possible. Additionally, this is only the first round of PMTAs, and no product has made it successfully through the process.
It’s unlikely that any applicant has already submitted more than a few products for approval. Even with FDA guidance, the industry is figuratively a canary in a coal mine. Until there is a solid example of a product successfully navigating the PMTA process, companies are likely to be conservative in how many products are submitted for approval. Those that do will likely be product types that have proven to be the most profitable and simple.
Pod systems are the most likely products to have already been submitted, along with e-liquids. They’re the most popular products in today’s market and are the easiest to consolidate. There are many pod systems out there, perhaps too many, but for good reason. They appeal to the widest market and ensure that consumers remain within the ecosystem as they keep coming back for replacement coils and pods.
Pod systems are also the most resistant pieces of hardware when it comes to a black market, therefore mitigating any risk for a PMTA rejection based on that premise. Many companies have released multiple pod systems over the years and by now have a good idea of which designs are the best. In terms of hardware, expect to see a pod system as the first “FDA-approved” vapor product.
As for specific companies to keep an eye out for, look at the largest companies. Smok, Innokin, Vaporesso, Juul—these manufacturers have been preparing for the PMTA deadline for years and have already submitted applications. In fact, almost all the big names in the vapor industry have submitted applications, including Uwell, HorizonTech, Sigelei, Suorin and others. Currently no PMTA has been approved, but none have been rejected either. These companies have the most resources, motivation and resolve to see this process through to the end.
E-liquid, however, is a completely different animal. It takes much more to create vapor hardware than it does to create e-liquid, and that means that smaller companies have also been submitting PMTAs for e-liquid. Unfortunately, much more consolidation will likely also be occurring. Remember, if only one flavor is available in four nicotine strengths and three bottle sizes, that’s potentially 12 PMTAs for “one” e-liquid. So even though more e-liquid companies are submitting PMTAs than hardware manufacturers, each e-liquid manufacturer will likely have to consolidate much more than a hardware manufacturer. This is also heavily reliant on how the FDA receives the PMTA. Many e-liquid manufacturers have submitted one PMTA for multiple flavors, but the success of this method remains to be seen, and the FDA’s own language is ambiguous:
“A manufacturer could submit one premarket application for multiple tobacco products with a single, combined cover letter and table of contents for each product. However, when [the] FDA receives a premarket submission that covers multiple, distinct new tobacco products, we intend to consider information on each product as a separate, individual PMTA …. [The] FDA considers each ENDS product with a differing flavoring variant or nicotine strength to be a different product.
So will each different nicotine strength of each bottle size require a separate PMTA, or can they be combined? It’s unclear, but some manufacturers such as AMV Holdings are confident that multiple SKUs can be covered by a single PMTA successfully. In a Sept. 9 press release, AMV writes, “AMV has filed an additional 104 PMTA submissions accounting for over 5,000 SKUs.”
However, even if multiple SKUs can be approved by the FDA under a single PMTA, consolidation will still occur, and only the most popular flavors, strengths and sizes will be submitted, at least initially. Given the popularity of pod systems, many manufacturers will likely submit a PMTA for e-liquids that use nicotine salts for a high concentration of the stimulant. Non-nicotine e-liquid is also likely to be among the first wave of submissions as well as one that is medium-strength. The reason being is that if a vaper prefers a nicotine strength of 3 mg, then unofficially the user can mix a higher strength with the non-nicotine e-liquid to achieve the desired strength.
Several well-known e-liquid companies have submitted applications, including Humble Juice Co., Suicide Bunny, Charlie’s Chalk Dust and Beard Vape Co. While the more popular flavors may or may not have been submitted, there are several things that can be expected. First, tobacco and menthol flavors will likely be among the first flavors to receive approval, followed by basic fruit flavors.
Like with nicotine strengths, flavors can be mixed by the end user, and by keeping it simple, mixing becomes much easier. Strawberry mixed with banana is much easier than apple-peach-mango mixed with blueberry mint. Depending on how the FDA treats bottle sizes, those may be consolidated to one size as well. Thirty milliliters is far and away the most popular size bottle for e-liquid, so expect that to become the standard.
As the top level of the vapor industry consolidates its products, so too must the ground level. Doing so in a similar way to manufacturers is the most pragmatic approach. If and when products begin receiving FDA approval, look for three “levels” of products—beginner, intermediate and advanced—with minimal variation for each.
At first, all three levels may be pod systems with varying degrees of advanced features, such as variable wattage, temperature control, etc. Beginner devices like disposables and pod systems, such as the Caliburn G from Uwell (see “Building on Success,” page xx), should take priority because even if they are mostly targeted at new and beginning vapers, advanced users can find value in those products as well.
Intermediate-level products can begin to include features such as variable wattage and a larger battery capacity or e-liquid capacity. These are generally features that are requested by beginners who have had time to use a lower level product and find themselves wanting for more. Perhaps it’s more vapor or just not needing to charge the battery quite as much. Each customer base can vary, but those moving to intermediate devices want “more but better.”
Advanced products are much the same but with generally higher power capabilities, e-liquid capacities, etc. The advanced user will generally know what they are looking for. In the current state of the industry, advanced devices generally include rebuildable atomizers as well, but these are likely not going to be a priority outside of niche markets. There’s a good chance that the first products brought through the PMTA process will be on the simple side, and rebuildables could require a separate PMTA for each type of wire and wick in order to be usable.
The mods most commonly used with rebuildables also tend to have removable batteries, of which there are multiple brands that could, again, each require a PMTA submission. There are quite a few “moving parts,” so to speak, when it comes to advanced vapor devices, and until the industry has a more complete knowledge of how to submit a successful PMTA, the more complicated vapor products will likely be left by the wayside.
The most important thing going forward is to simplify, reduce redundant products and provide a clear advancement pathway for new users. There is massive value in being a one-stop shop for new customers to discover vaping and keep coming back as they progress at their own pace. This may prove much easier throughout the PMTA process as a store owner may very well to be able to pick one manufacturer and stick to it since currently, many products are already similar between companies. Consolidation may also serve to clarify and simplify the development of a product line within a store, making it easier for stores and customers alike.
The PMTA process is grueling and stressful for the entire industry. Although choices may soon become very limited, rest assured that the most reputable names in the business will continue to make their products available. Consolidation is inevitable, but one way or another the burden of choice is about to become much lighter, for better or for worse.
Internet vape shop sales are facing fines as the U.S. state of Washington investigates online e-cigarette retailers. Washington’s Attorney General Bob Ferguson announced the results of a dragnet that caught five companies caught violating Washington’s age verification law, yesterday. Those fines amount to a total of $132,000 to the Attorney General’s Office, which will go toward continued enforcement of the law, according to a press release.
The five companies also entered into legally binding agreements with the agency to change their advertising and online sales practices to comply with Washington’s youth access law. The Attorney General’s Office says it “has or will” file lawsuits against two more companies for the same issues.
Credit: Free-Photos
For the investigation, the agency assembled a list of 148 online vapor product retailers. Investigators then posed as minors or used false identifying information and attempted to make purchases of nicotine-containing vapor products. “Washington’s law requires stringent age verification for online sales of vapor products. For example, vapor product sellers must verify the buyer’s age using a third-party service to crosscheck and confirm the buyer’s identity,” the release states. “Seven of the 148 targets illegally sold products to the investigators without verifying the ages of the purchasers, including one that completed the sale even when the investigator indicated they were 17 years old.”
The sting caught two additional companies that failed to cooperate with the investigation, according to the release.
In order to sell vapor products to Washington residents, retailers must do the following:
Clearly state Washington’s minimum legal age of purchase on their website;
Use a third-party verification service to confirm the purchaser’s name, age, and residential address;
The retailer then needs to verify the credit card information, and it has to match the information the purchaser provides;
Then they have to get a signed certification from the purchaser, saying they are who they say they are, and they are of legal age to purchase vapor products;
When the package ships, the shipping documents need to clearly state the package contains vapor products;
And the package needs to contain information about Washington law regarding the purchase of vapor products by minors.
Many sites used an “age gate,” requiring visitors to either confirm they were of “legal smoking age,” or enter their birth date to confirm their age, according to the release. Investigators tried to enter a birth date for a 17-year-old into the age gate on each site. All but one rejected that attempted purchase.
If the investigators got rejected by the age gate, they entered a fake birth date indicating they were of legal age, and used fake identifying information to make their purchase. If a company was following Washington State law, this information “was impossible to verify, and they were not allowed to make a purchase,” according to the release.
A new loyalty program aims to help retailers increase turnover of high-quality vaping products. E-Alternative Solutions (EAS), a manufacturer of consumer-centric brands, announced the launch of its “The Smart Choice” loyalty rewards campaign to support its Leap and Leap Go vapor products.
EAS submitted its premarket tobacco product applications (PMTA) to the U.S. Food and Drug Administration (FDA) for its Leap and Leap Go products in June of this year. The company received its acceptance and filing letters from the FDA in early July. Leap offers a wide variety of menthol and tobacco flavors in multiple nicotine levels, while Leap Go has three blends, including mint and mango.
The campaign improves on EAS’s Leap Smart Rewards program “to foster adult consumer loyalty and recurring revenue for retailers by providing adult consumers with points for purchases that can be redeemed for cash gift cards or gift cards to hundreds of choice retailers and restaurants,” according to a press release.
As part of this campaign, yellow promotional stickers on products provide extra points towards rewards, and Leap Device Kits can be found for $0.99 in many retail locations throughout the US, said Jacopo D’Alessandris, president and CEO of EAS.
Jacopo D’Alessandris
“We have already seen significant appreciation for and entry into the Leap Smart Rewards program, which was developed to provide adult consumers the kind of value they’re looking for in these times,” said D’Alessandris. “From the trial promotion price for the device kits, to the bonus offers encouraging the purchase of a second product, we are taking an aggressive position to reinforce to adult consumers that Leap products are the smart choice when making a vapor purchase. We plan to continue investing in this and other initiatives to grow loyalty, brand awareness and sales.”
Smart Rewards points can be earned through the purchase of products, taking a survey or referring a friend. Points are redeemable from codes in Leap and Leap Go packaging. For this campaign, Leap Smart Rewards point values have increased to 25 points for most Leap and Leap Go products during a time when value is even more important for adult tobacco consumers, the release states.
“Promotional inventory has already begun shipping out, and early indications are that both Smart Rewards and the $0.99 device kits are performing as intended,” said Jeffrey Brown, vice president of sales for EAS. “Our retail base stands to be rewarded on both the device kit and corresponding pod sales at store level, as we do not sell Leap products online.”
Additionally, as part of its ongoing commitment to its partners to drive business and increase visibility of Leap products, EAS will continue supporting retailers with a 100 percent product guarantee as well as regulatory and compliance expertise.
British American Tobacco (BAT) has pilot-launched its first CBD vaping product, Vuse CBD Zone.
