The vapor market is one of the fastest growing businesses worldwide. The United States is one of the top markets in the industry. Even with new stronger regulations over the vaping industry, analysts expect to see continued growth in the market. According to MSN Money the United States is expected to continue its lead in the global e-cigarette market. Experts anticipate that the U.S. vape market will continue to grow to over $20.17 billion by 2025.
For entrepreneurs interested in investing in this market by purchasing an e-cig franchise, this is good news. The e-cig market initially found its strength with the downfall of traditional tobacco products. With the health warnings about the dangers of tobacco use blaringly loud, traditional tobacco smokers are swarming to e-cigs as an alternative. Other factors include the rapid increase in the cost of cigarettes and the ban on public smoking. E-cigs were a welcome refuge for traditional tobacco smokers. They are a tobacco-free product, and currently there are few bans on where e-cigs can be smoked. For the investor the e-cig market has a solidly growing customer base of ex-tobacco cigarette smokers and new users.
The cost-effectiveness of an e-cig store is another viable reason to invest in this market. E-cig stores can be ran in a smaller square footage than other retail businesses. With smaller stores comes lower expenses including the need for fewer employees. One up this to a franchise e-cig store outlet and you have a winning business investment.
The franchise business format is a popular investment for entrepreneurs. The start-up and running of a franchise business is easier than creating a business from scratch. When an entrepreneur invests in a franchise store outlet he is buying the use of a tradename, products, and business model. The main franchise is there to assist the outlet owner from initial set-up to the daily running of the business. With a pre-set business format and the backing of the main franchise, an entrepreneur can successfully set-up and run his business in a much shorter amount of time than growing a business from an idea. For a franchise with a well-known brand there should be a pre-existing customer base to start with.
With the popularity of vaping, e-cig stores and franchise opportunities are growing. The market is relatively new. Competition is there, but less than businesses that have been around much longer. The business model itself is changing with the growing customer base. Stores that once only sold vaping products now have e-juice bars and more of a lounge-like feel. A more diverse and higher clientele are now joining the growing numbers of vape smokers.
With the expanding vapor market there are more opportunities for investors and entrepreneurs to jump into the industry. Combine the e-cig market growth with the popularity of the franchise model and the investment opportunity grows. These are invaluable reasons to invest in both the vape market and a franchise store. The time to buy a franchise e-cig store is now.
References:
- MSN Money. “United States E-cigarette and Vaporizer Market Analysis, Estimation & Forecasts 2015-2025”
5 May 2016
