*When you buy through our links, we may earn a commission at no extra cost to you. Learn more.

Starting a Vaping Business: Top 3 Aspects to be Aware of

vaping business

Vaping has become a popular alternative to smoking these days, especially for people who want to switch from cigarettes to a less intoxicating and harmful substance. In 2022, the e-cigarette and vaping global market clocked in at about $22.45 billion. This figure is expected to increase to $40.25 billion by the year 2028.

A lot of smart entrepreneurs are recognizing the potential of the vaping and e-cigarette market in order to make big money. However, starting a business in this field can be tricky.

The competition and the many laws and regulations that exist make the vaping business quite a complex affair. Today, let us look at three important aspects that entrepreneurs need to keep in mind before entering this field.


#1. Create a Solid Business Strategy

Every business requires a comprehensive business plan and strategy. Just like how great articles require a good outline, great businesses also require a sort of executive summary that contains your long-term vision, goals, business structure, location, types of services that will be offered, target market, and more.

Conducting thorough industry analysis before investing even a single penny. Analyze trends in the vaping scene, the opportunities that exist, the areas of expansion, and possible threats in the form of new regulations that can disrupt future business.

Operating with a good strategy would also include having clear objectives about the types of advertising and digital marketing that would be involved, the budget to be allocated, and whether or not to hire an in-house team or contract work out to 3rd party services.


#2. Acquire Partners for Supply, Logistics, and Funding

These days it is possible to operate a successful business without even needing to invest heavily in real-estate operating spaces. Many entrepreneurs have successfully run e-commerce businesses in which warehousing requirements were outsourced.

Such an approach works well with trendy online businesses where you don’t want to go into the brick-and-mortar dynamic. However, if that is what you have in mind, there are several options, such as Vape Lounges and Vape showrooms.

Regardless of the approach taken, you will find the need for partnerships to be extremely important. Being able to procure vape cartridges and other vaping and e-cigarette components is crucial, so you can check them out for wholesale carts.

Finding a reliable wholesaler is key to maintaining the sustainability of your business. Without a proper line of supply of products and accessories, such as Delta 8 cartridges, it is incredibly easy to run into stockout issues. This is the easiest way to start stagnating or worse, as it eventually leads to the collapse of a business.

Similarly, you want to prioritize finding proper funding ASAP. In the early stages, this can be via Angel Investors. As your business grows, both venture capitalists and corporate investors will also need to get involved.

The last thing you want is to find yourself stretched thin and end up with poor or non-existent cash flow. This is an often overlooked dynamic by new entrepreneurs who tend to believe that raw profit is all that matters. A lack of proper cash flow has the power to bring any business to a grinding halt.


vaping industry


 #3. Ensure Compliance with Laws and Regulations

There are a number of important laws that anyone thinking about starting a business in this market needs to be aware of. If you are unsure where to learn about this, the Public Health Law Center has compiled a pretty comprehensive list of e-cigarette regulations across 50 states.

This is a great resource, but you should still every aspect of the business with a legal consultant.

The Food and Drug Administration (FDA) also has specific regulations revolving around virtually every aspect that goes into the vaping or e-cigarette business. These regulations cover everything from importing or manufacturing to packing, promotion, and distribution.

In addition, e-liquids, cartridges, atomizers, and more are all regulated components. Complying with these regulations seems to involve the same process that those dealing in Tobacco related products are required to obey.

Some had hoped that the FDA wouldn’t consider vaping hardware as belonging to the same category as tobacco products, but the FDA clarified that it most certainly does.

There is also the matter of specific taxes that are applicable for vaping, which can be quite high. States like California, for instance, require 61.74% of the wholesale cost of vaping products that contain nicotine. Others states can also be similarly high.

While it can seem annoying to deal with these heavy taxes and regulations, it is better to oblige them than try to skirt laws and end up being heavily penalized.



Given the optimistic market projections revolving around the e-cigarette and vaping industry, starting a business in this field can be extremely profitable.

With many cigarette companies making moves into the vaping scene, it makes sense to establish a strong presence as soon as possible. Developing a clear business strategy along with effective marketing is critical.

Having good legal advice can also be invaluable in navigating any rules that are specific to your particular location.

Skip to content