The FDA has spoken. As of August 8, 2016, e-cigarettes and vaping products have been classified “tobacco products”. As a result, e-liquids and other e-cig products require extensive and expensive testing before getting approval. The effect on businesses is likely to be huge, so the Electric Tobacconist is here with an infographic guide on that very topic.
We currently stock hundreds of products from brands such as Mark Ten XL, Vaporin, Vuse and Mt Baker Vapor. The cost of testing is likely to reduce this range massively, with the FDA estimating a $330,000 cost per product. Others guess that it is likely to cost closer to $2 million per e-cigarette product, rendering small businesses unable to survive. Companies like Juul, who have been highly innovative, will face a challenge to remain open.
The reduction in products will be passed onto the consumer, who will be left with just a few e-liquids to choose from. The price of e-juice will also go up, as supply struggles to meet demand. This is good news for the biggest brands, such as Vuse and Vaporin, who are owned by big tobacco companies. They will probably survive the application process, and will be able to dictate the prices they charge.
As consumers fight back against the rising costs and reduced choice, a black market will emerge. People will find recipes for Mt Baker Vapor e-juice and mix it up themselves. The economy will take a hit once the industry goes underground, with millions of dollars in lost taxes hitting the country hard. The e-cigarette industry was worth around $2.9 billion in 2015, but you can be sure that the FDA’s regulations will bring this number to the floor.
As a supplier of e-cigarette brands including Vaporin, Mt Baker Vapor, Vuse and Mark Ten XL, the Electric Tobacconist will continue to stock brands that follow the FDA’s regulations. Check out our huge range of e-juice and start vaping before the industry takes the hit.