Coronavirus causing vape decline ?
Coronavirus, Vapes and China. Three words you would be surprised to learn all go together. The connection has to do with why a vape shortage may be on the horizon!
In a weird twist of fate, the coronavirus might be damaging to more than just the global health. It's also providing a crushing blow to the vaping industry.
Shenzhen, China - right outside of Hong Kong - is known as the vaping capital of the world. No, literally: it manufactures about 90% of the world's vaping products.Nearly 1,000 factories produce the majority of the world's vaping products, but how does that connect to China? Well, let's talk coronavirus for a second.
While the initial outbreak was traced back to Wuhan, it has now spread across China, as well as into over other 60 countries. With the UK having over 163 confirmed cases as of 6th March. Part of the action is making workers stay home from their job. No workers? No production. No production? No vaping products to be outsourced throughout the global market.
Granted the shortage is going to affect distributors in different ways. For someone like JUUL, the issue should stay relatively contained. Major companies have the ability to pivot for the time being, working with surplus inventory to weather the coronavirus setback. That's not the case for everyone though. Smaller companies don't have that luxury. For businesses that routinely depend on exports from China, they're facing a potential standstill.
In the global economy we operate in, coronavirus threatens to upend an industry that has just about survived every other attack against it.
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