Investors are always looking for big opportunities and great trends. They want to capitalize on emerging industries and make quick money. That’s one of the reasons why many investors have turned to the CBD vaping industry, which experts believe will reach $50 billion by 2025. This industry is still under $10 billion so the time is right to grab some stocks from CBD vaping companies.
Why is this Industry Growing?
Awareness campaigns and government programs warning people about the dangers of smoking cigarettes have worked. The volume of cigarette sales have gone down and it seems like the downward trend will continue.
CBD vaping helps smokers quit the habit and is a much healthier alternative to a cigarette, which has caused many people to switch over from cigarette smoking.
The companies in this industry are also trying to introduce their IQOS devices that heat but don’t burn tobacco. They claim that this smokeless method of consuming tobacco has a much lower risk and will help people kick the cigarette habit.
The IQOS devices tested in different markets like Japan have proven to be very popular and might be released in the US markets when they have FDA approval. When these devices do what approval, the companies making them will experience a boost in revenue.
Big name tobacco companies have read the writing on the wall and are preparing for the global shift towards less cigarette consumption. Most have focused on CBD vaping and are buying up small companies or competitors in this industry.
Big brands have also come up with IQOS devices to keep the tobacco consumption alive. Investors have the option to invest in big companies or smaller CBD vape brands that don’t provide anything but CBD vaping devices.
1. Big Tobacco Companies
Big tobacco companies aim to recover lost cigarette business by delving into the CBD vaping industry. They’re some of the best investments you can make because they’re well-established businesses. The best stock options for big tobacco companies include:
Phillip Morris International – This is the company that manufacturers Marlboro, Chesterfield, and Parliament. It is also spearheading the IQOS movement and encouraging people to consider heat-not-burn devices to consume tobacco. With the FDA approval, Phillip Moris’ stock will rise in value considerably. The company has already introduced IQOS devices in 30 markets to date and seen a great deal of success with it. You’re looking to invest in a steady stock, this option is suitable.
Altria Group – This group is going to be responsible for the US domestic distribution of IQOS devices as a part of their deal with Phillip Morris International, which means they will get a big piece of the pie. They already have a successful e-cigarette device in the market. The MarkTen is widely available throughout the US and is popular in the CBD vape industry. The company has a minor stake in the Avail Vapor chain of vape stores. They’re a strong choice for investment.
British American Tobacco – BAT is the owner of popular Fuse and Vype lines of e-cigarettes, so they already have a strong presence in the industry. Their glo product line is a direct competitor to IQOS in the heat-not-burn market. With three successful product lines and a well-established customer base, BAT is a good investment. They own a big market share in both the no-smoke cigarette and the CBD vaping industry.
Imperial Brands – This company isn’t as well-known or popular as the two options mentioned above, but it does have a strong customer base. They acquired blu e-cigs, a very popular and well-known company in the vaping market. Their e-cigs are highly recommended, especially to new CBD vapers who are just trying to quit smoking.
These brand are established entities with a great plan for the changes in the cigarette market. An investment portfolio with most of this stocks will provide good returns on your money.
Just Vaping Stocks
Some investors don’t want to invest in tobacco companies and would like to focus purely on the CBD vaping market. Unfortunately, this can be a challenge. Vaping companies are smaller and often privately-owned. Investing in them is difficult because you need to reach out to the owners directly and negotiate a deal. There are a couple of open options available and they include:
Turning Point Brands – TPB is a growing and thriving brand with a steady customer base. They don’t delve into the traditional cigarette market but have a strong enough presence in the CBD vaping industry to make up for it. The company has a strategic partnership with V2 Electronic cigarettes and has acquired Vapor Beast, which is a large and successful e-commerce site for this industry.
Vapo Holdings – This company only sells vaping products and nothing more and is new to the market. They currently have only one product line and that is Hive Ceramics, which makes ceramic elements for different CBD vaping products. This is an emerging brand so investors need to take care while investing in it.
Investing in a newly emerging industry is always a risk, but if you play your cards right, you can gain a lot of profits. It’s all a matter of making sure you pick the right stock. Take time to conduct research into every company or consult with a financial advisor before making a decision.
If you’re willing to invest in CBD vaping products that are related to marijuana, other investment opportunities like Aphria, Aurora Cannabis, and Canopy Growth Corporation are available.