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State of Vape: Vaping Post-PACT Act

April 05, 2021

State of Vape: Vaping Post-PACT Act

The vaping industry has undergone a sea of changes after the PACT Act has come into effect. At the end of 2020, the eJuices.co team discussedhow the PACT Act will affect the vaping industry. This has led to a flurry of regulations ending USPS vape mail (which has not taken effect as of this writing), requiring registration with the FDA and ATF, among other regulations. Nationwide, adult signatures are required to receive vaping products which can add at least $7 to your vape mail delivery, as well as additional taxes per state (you can find out what it is in your statehere). What does this mean for the vaping industry?

Vaping Isn’t Dead

First and foremost, as long as there is a demand for alternative nicotine products, vaping isn’t dead. Manufacturers are always looking for ways and means around this, such assynthetic nicotine, which is currently not regulated by the FDA or any other government agency. The vaping industry is currently finding alternative methods of delivery, as national and international carriers such as the USPS, UPS, FedEx, and DHL all prohibit the delivery of vaping products.

Expect Vaping To Be More Expensive

When the cigarette industry was undergoing regulation through taxes, the prices of cigarettes skyrocketed. Since vaping products are now considered tobacco products, expect prices of vaping products to also be more expensive. As previously mentioned, the demand for such products continues to exist. In other highly regulated industries, such as firearms and alcohol, there is less sensitivity towards price versus less regulated industries.

While the price of your vape products will increase by at least $7 (depending on the shipping price and adult signature cost) plus applicable taxes, it is still unknown how much more expensive vaping will become due to the regulations put forth by the PACT Act. One of the major questions involves whether or not the cost is passed onto the consumer or absorbed by the manufacturer, retailer, or distributor. Many other variables also come into play, such as the cost of shipping by regional carriers as well as other expenses. Your shop may choose to deliver vaping products and that will also be another expense your business might incur.

To have a more clear example, theaverage pack of cigarettes cost only $0.80 40 years ago in 1981—in 2021, that same pack averages $6.65. State-by-state, New Yorkers pay the most for cigarettes at close to $13 a pack. While regulating vaping may change as time goes along, seeing the demand for alternative nicotine products and their role in harm reduction could completely change the narrative around how much more expensive vaping will become.

That’s all for this edition of State of Vape. Have any questions, comments, or concerns? Feel free to contact your eJuices.co account manager or sales representative. We’re looking forward to speaking with you and helping your business succeed.

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