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TOBACCO BUSINESS INTERNATIONAL
MAY/JUNE 2015
Retail Landscape Report
T
here’s no denying it. The world
of vaping is revolutionizing the
tobacco landscape—which means
your business needs to adapt to thrive in the
evolving world of tobacco retail.
Vying for the VTM Market
As you probably know, the new vapor
market is becoming known as the VTM
market, which stands for vapors, tanks and
mods. That includes e-cigarettes (e-cigs)
or cig-alikes, vaping devices that are more
mechanical in nature, and the world of
e-liquids.
Wells Fargo Securities projects that this
new market will generate $3.5 billion in
annual sales in 2015, up from $2.5 billion
in 2014, and that it will grow to to be a $10
billion market by 2018. By 2025, the VTM
market could exceed conventional tobacco.
What’s more, profit margins on hardware
are excellent, and the margins on e-liquids
are even better.
Already, vape-only shops are springing
up across the country, competing with
traditional tobacco outlets and smoke
shops for nicotine consumers. Though the
industry lacks metrics due to its newness, it
is estimated that there are 6,000 to 8,000
brick-and-mortar locations nationwide.
That’s a huge jump from an estimated 1,500
to 2,000 shops in 2013. More and more
outlets and smoke shops are also finding
success pursuing the category, as evidenced
by the two examples to follow.
Pursuing Profits
In 2014,ChadLove bought aWytheville,
Virginia-based smoke shop that had been
a staple in the community for years. After
rebranding the shop to Blue Ridge Smoke
and Vapor, he investigated his options to
Get Your Vape Game On
Are you ready to get your share of the VTM market?
By Norm Bour