When it comes to the vape industry, first came to our mind, it suffered a lot during the
trade war between China and the United States. Vape manufacturers are struggling with rising tariffs.
However, it also suffered from the COVID-19 directly.
Firstly the pandemic with its stay-at-home orders has impacted many manufacturers' global supply chains.
Increase in demand and no supply
What’s more, the global lockdown of the COVID-19 period, people need a tool to release their stress, Vape can take the place of a cigarette, with decreasing risk of addiction. Thus, the demand for Vape is drastically increasing.
Thirdly, COVID-19 will spread quickly when people gather. Thus, the manufacturing and delivery industry can not meet their schedule, which is the Vape industry's two pillars. There is a massive shortage in supply of vape products and hardware to the US markets due to the inability of production and delivery.
Currently, there are more than 2.5 million confirmed cases of COVID-19 in the world, and the number of infected keeps growing. The economy is already feeling the impact of this virus, and we can predict a global recession occurring soon if there is no cure or vaccine.
Vaping industry in China
Most of the vape hardware used in the United States is from Shenzhen, China, which is the vaping capital of the world. Ever since the outbreak of COVID-19, China has been on a national lockdown, putting a halt on its economy, which leads to the shortage of the production and manufacture of vape hardware.
The Chinese government is rushing between restarting the economy and continuing the lockdown to stop the spread of the virus. Besides, vaping production companies in China are not eager to be back to regular production for the anti-virus encouragement from the local government. Thus the supply can not meet the demand.
Fears of products made in China
From the beginning, in people’s minds, the origin of the coronavirus is from Wuhan, China. And according to the WHO statistics, the coronavirus lives on stainless steel/plastic for three days and on cardboard for 24hrs. Thus cause fear to people that the product made in China carrying virus. The selling amount of vape drops for this reason in a short time. As we all know, the power of MADE IN CHINA and Shenzhen, China, is the vaping capital of the world. People fear to use vape products manufacture and ship from China before the report that coronavirus can only live on the surfaces of the items for a short time comes out.
After the report, people feel relieved and continue to Vape their favorite brands. In the long term, The demand market is enormous.
In conclusion, the coronavirus causes lockdown in China and the USA, which leads to the shutting down in the factories and most people staying at home. People’s demand for Vape is incremental. However, production is decreasing. In a short time, this will spur the prosperity of surviving factories, which is still in operation. In long terms, we know that production delays in China will continue affecting the supply of vape products globally, resulting in shortages.
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