The Impact Of E Cigs On The Economy

Strip away the debate about whether e cigs are safe or not and you reveal a question of economics. How are electronic cigarettes affecting the United States economy? What positives and negatives are emerging? There are definite pros and cons, but which are there more of?

Pros of the E Cig Industry on Economy

When stocks, funds, pensions, and real estate all crashed earlier in the century, there was a void into which many consumers fell: consumers who once ran businesses which were now foundering; consumers who worked for companies that went belly-up. These individuals had to find new work and quickly, often not in their area of expertise or training. They had to be creative.

Meanwhile, you wouldn’t dare take their vices away. Cigarettes were more important than food for many individuals who needed that crutch while they suffered. And then they heard rumblings in the economic woodwork about a new type of smoking which didn’t involve smoke. The topic would require some investigation.

Out of Whisperings

Out of rumor and gossip, an industry grew. Many of the people who became involved in it recovered from financial losses by starting new businesses that did not have that much competition and were fascinating to millions of smokers all over the United States. These people were able to make the switch from smoking, share the joy of smoke-free living with other smokers, and regain their dignity all at the same time. On an individual level, the e cig industry had become financially important.

As companies have grown, they have also expanded, requiring more staff, and adding extra shops. They have added online sales and e juice lines. Meanwhile, other industries have grown for people who make e-liquid and mechanical mods. Shipping companies have gained in the exchange as well.

Financial Savings

One must not forget the money vapers save when they switch from smoking. It is thought that the minimum a consumer will save is about 40%, but that could be doubled if an individual continues vaping long term.

Cons of the E Cig Industry

There are economic losses to consider, though, especially as they relate to tobacco companies and smoke shops. Unless a firm is able or willing to adapt, e cigs threaten to reduce their share of the market substantially, and they already have. If cigarette manufacturers were unpopular before, they are doubly unpopular now that smokers have a choice.

Branching Out

Some of these businesses are branching out, however, by investing in e cig manufacturing and selling both types of products. Many smoke shops carry electronic devices alongside cigarettes, cigars, tobacco, and regular pipes.

New Vice

There is also a fear that by replacing one vice with another, customers will actually get in even deeper than they ever did with cigarettes. The electronic cigarette industry is designed so that clients’ habits can grow from using cigalikes to eGos, APVs, and eventually mechanical mods. Customers frequently turn vaping into an expensive hobby, and the e-liquids don’t help.

E-Liquid Escape

Nicotine juice (or nicotine-free e-liquid) is a lot of fun; full of diverse, tasty flavors. You could find yourself spending potentially more on e-liquid and parts for your mechanical mod than you ever spent on cigarettes, especially with so many premium brands joining the market. Though if e-juice is the only thing you restock, you can save substantially.

Money Going to China

One must also consider how much money leaves the country, bound for China, where most e cigs are manufactured. Americans can say they aren’t benefiting from the e cig business based on this fact, and they would have a point, but they are only focusing on one aspect of the industry. Besides, most of the America’s electronics manufacturing takes place in Asia.

But there are whole sub-categories of electronic cigarettes shipped over from Shenzen, especially in the dominant market (mid-level vapers using brands like Kanger, JoyeTech, and SmokTech) and mechanical mods (Philippine mods are particularly popular).

Economics Overall

But the general feeling is that e cigs are good for the economy. New business promotes competition, growth, industry, and independence. Americans who would have relied on unemployment handouts and charity now work or run businesses, pay taxes, and contribute to the economy by spending an income they were dangerously close to losing.



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