Should You Open a Vaping Business in Canada?

The vaping industry has experienced significant growth in recent years, with many entrepreneurs seeing it as a promising business opportunity. If you’re considering opening a vaping business in Canada, it’s important to weigh the pros and cons before taking the plunge.

In this article, we’ll explore the factors to consider when deciding whether or not to open a vaping business in the Great White North.

The Pros:

High demand for vaping products: With an increasing number of people switching from traditional cigarettes to e-cigarettes, there is a growing demand for vaping products in Canada. This trend is expected to continue as more individuals seek healthier alternatives to smoking.

Supportive regulatory environment: Health Canada has taken a balanced approach to regulating the vaping industry, aiming to protect public health while allowing for continued innovation. This relatively supportive regulatory environment can be beneficial for those looking to enter the industry.

Expanding market: As public awareness of the potential benefits of vaping grows, so does the market for related products. A well-researched and executed vaping business has the potential to carve out a significant share of this expanding market.

The Cons:

Intense competition: The vaping industry is highly competitive, with numerous players jostling for market share. As an entrepreneur, you’ll need to differentiate your offering from the competition and find a unique selling proposition to stand out.

Changing regulations: While the current regulatory environment in Canada is relatively supportive of vaping businesses, there is always the possibility of future changes. The industry has faced scrutiny in recent years, and tighter regulations could impact the viability of your business.

Health concerns: Despite the many people who have successfully quit smoking through vaping, there are still concerns surrounding the long-term health effects of e-cigarette use. As new research emerges, public opinion may shift, affecting the demand for vaping products.

What About The Tax?

In Canada, all tobacco products are subject to excise taxes. This includes cigarettes, cigars, chewing tobacco and snuff—and e-cigarettes as well. Vape tax in Canada varies depending on the product type and it is best to consult with an experienced lawyer before making any business decisions.

The tax on e-cigarettes is a significant factor in their cost, and it also affects consumer choice. If the price of vaping products increases due to increased taxes, it could have serious implications for your business.


Opening a vaping business in Canada can be a potentially lucrative opportunity, given the growing demand for vaping products and the supportive regulatory environment. However, it’s crucial to consider the risks and challenges involved, such as intense competition and future regulatory changes. A thorough understanding of the market and a well-thought-out business plan can help you make an informed decision about whether or not to embark on this entrepreneurial journey.

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