Puff, Profit, Prosper: How the Vaping Industry Impacts Local Economies

The vaping industry has grown from a niche market into a major economic force in the United States, creating jobs, supporting local businesses, and generating billions in tax revenue - particularly with the inclusion of the "sin tax" on nicotine products in certain states. Yet, despite its economic contributions, the industry often faces strict regulations and bans that threaten its growth. While some argue that restricting vape sales protects public health, the reality is that over-regulation leads to shop closures, job losses, and a shrinking economy, all while pushing sales into unregulated black markets. This is counterintuitive.

So, you may ask, what happens when the vaping industry is allowed to expand rather than being forced out? The answer is so simple, yet seems to be elusive in conversations on a regulatory level. Expansion means job creation, thriving local businesses, and a stronger economy.

Below, we'll break down the economic benefits of vaping, compare East Coast vs. West Coast industry trends, and discuss why brands like BLVK are essential for supporting local businesses.

Vaping isn’t just a trend at this point. It’s an industry worth over $22 billion annually, accounting for about 0.1% of the U.S. GDP. The industry directly employs more than 133,000 Americans, with workers earning a total of $7 billion in wages. These jobs range from manufacturing and logistics to retail positions in vape shops, creating economic opportunities across all levels.

When vaping businesses thrive, they fuel a larger ecosystem of suppliers, distributors, and service providers: from tech companies that create vape devices to local print shops that make store signage. The industry’s economic impact extends far beyond the checkout counter.

The West Coast, particularly California, has long been at the center of the vaping industry. Home to leading vape manufacturers, distributors, and a dense network of retail shops, California played a key role in bringing vaping mainstream.

For example, BLVK, based in Southern California, has grown into an award-winning brand distributed in over 80 countries. Their success has not only created jobs within their company but also supported thousands of independent smoke shops, distributors, online retailers nationwide that stock BLVK's high-quality e-liquids and disposable vapes like the BLVK Bar.

The success of brands like BLVK highlights how West Coast innovation fuels small businesses nationwide. When vape manufacturers expand, retailers thrive.

However, California’s regulatory landscape is shifting. Recent flavor bans and tax hikes have led to store closures and job losses, threatening the state’s vape economy. A 2022 analysis predicted that California’s flavor ban could eliminate 6,690 jobs, cut $427 million in wages, and shrink the state’s economy by $1.45 billion. Yikes.

Despite these setbacks, the demand for premium vape products remains strong, proving that consumer interest in vaping isn’t going away, even if lawmakers try to restrict it.

On the East Coast, vape shops have played a crucial role in local economies, especially in states like Florida, Pennsylvania, and New York. Many entrepreneurs opened stores in response to high demand, with some expanding into multi-store businesses.

For instance, one East Coast business owner started a vape shop in Florida in 2013 after seeing how quickly the industry was growing. Over the years, she expanded to four locations in Massachusetts, creating jobs and serving thousands of customers looking for an alternative to traditional cigarettes.

However, much like on the West Coast, some East Coast states have introduced strict vaping regulations. Massachusetts implemented a full ban on flavored vape products, which resulted in store closures and job losses. One year into the ban, Massachusetts had lost $114 million in tax revenue, with many consumers turning to neighboring states or the black market for their products ( Boston Herald ).

This highlights an important point: Banning vaping doesn’t eliminate demand, rather, it just shifts sales elsewhere, often at the cost of local businesses and state tax revenue.

Regulatory crackdowns often force small vape retailers out of business, leading to significant economic consequences:

• Job Losses: Employees are laid off, impacting families and communities.

• Decreased Tax Revenue: States lose millions in taxable sales as consumers turn to unregulated markets.

• Rise in Black Market Sales: Without access to legal vape products, many consumers turn to unverified sources, increasing health risks.

• Retail Voids in Local Communities: Vape shops often occupy vacant storefronts, helping maintain vibrant business districts.

In California, Massachusetts, and other states with restrictive laws,  these consequences have already become reality . Conversely, states that allow the vaping industry to operate under reasonable regulations, such as Florida, Pennsylvania, and Texas, have seen continued job growth and strong tax revenues.

A strong vaping industry depends on reliable, high-quality manufacturers, and BLVK is a prime example.

By offering premium nicotine salts , multiple lines of freebase e-liquids such as WYTE , BLVK , and FRZN , and a variety of tasteful disposable vapes , BLVK ensures that independent vape shops have a diverse, high-quality product lineup to keep customers coming back. The brand’s commitment to excellence and compliance makes it a trusted partner for businesses that rely on consistent, safe, and flavorful vape products.

With a reputation for quality and innovation, BLVK has been instrumental in keeping vape retailers competitive—helping them attract adult customers seeking premium alternatives to cigarettes.

When businesses like BLVK succeed, local vape shops succeed, and the industry continues to thrive.

As we’ve seen, the vaping industry has proven to be a powerful driver of economic growth, from the manufacturing hubs on the West Coast to the small-town vape shops of the East. However, overregulation threatens these gains, leading to job losses, declining tax revenue, and thriving black markets.

Rather than overreaching by banning flavored vapes or overtaxing small businesses, states should consider balanced regulations that allow the industry to grow while addressing public health concerns. Solutions include:

• Strict Age Verification: Prevent youth access without harming legal adult sales.

• Retail Licensing Programs: Ensure only reputable businesses operate in the market.

• Moderate Taxation: Keep products affordable while generating tax revenue.

• Consumer Education Initiatives: Encourage responsible vaping through awareness campaigns.

These approaches would allow the vaping industry to keep creating jobs, supporting small businesses, and generating revenue, without sacrificing public health goals.

While these elements can’t be changed overnight, some efforts can be made in the meantime by brands with a voice. BLVK, for example, is very outspoken when it comes to protecting the rights of adult vapers and ensuring continued access to alternative nicotine products. As government regulations tighten, BLVK actively fights against unfair vaping restrictions, working alongside advocacy groups, retailers, and consumers to challenge harmful policies. From opposing flavor bans and excessive taxation to educating lawmakers on the benefits of harm reduction, BLVK believes in a balanced approach to regulation, and one that prioritizes public health without destroying small businesses. Stay informed and get involved in the fight to keep vaping accessible by visiting the  Advocacy Page.

The vaping industry has become a pillar of economic opportunity, creating hundreds of thousands of jobs, filling empty storefronts, and generating billions in tax revenue. When vape businesses expand, local economies thrive. When they are restricted, communities lose jobs, tax revenue, and safe consumer options. It really is that simple.

The evidence is clear: expanding the vaping industry benefits businesses, workers, and state economies alike. The question is: will policymakers recognize this before it’s too late?

BE LOYAL, VALUED, KIND

BLVK.