What Startups Can Learn From the Vaping Industry

The vaping industry grew fast, under conditions that most businesses would see as blockers. Regulations changed all the time. Payments were hard to set up. Public opinion swung back and forth. Still, companies in this space figured out how to move quickly, adapt, and keep their products on the market. If you’re building a startup—especially in a space that’s a little messy or hard to define—there’s a lot you can take from how this industry handled complexity. Not as a model to copy, but as a set of decisions that made forward motion possible.

Startup

Via Pexels

Navigating Regulatory Complexity

Vape companies deal with a tangle of compliance obligations. Some regions restrict flavours, others restrict devices. Labels, age verification, marketing—every part of the customer journey touches regulation. There’s no single standard. Rules change with almost no notice.

Startups in finance, healthcare, or anything subject to government oversight will see something familiar here. Many vaping companies designed their compliance processes to adapt. Instead of building one product for a single market, they created frameworks that could adjust across borders. Some ran parallel regulatory playbooks. It wasn’t elegant, but it kept products legal and available. Fast-moving teams need systems that absorb regulatory churn without grinding to a halt.

Speed-to-Market with Differentiated Products

New devices and formulations hit the market quickly. Disposable formats, pod systems, synthetic nicotine—all launched before major competitors could respond. Iteration cycles were short. Launch, listen, adjust. Some products faded, others stuck.

Startups often try to predict everything before launching. The vaping sector moved differently. Trends were tested in-market, not just in strategy decks. Feedback loops were fast. Even the large players behaved like test-and-learn machines. This helped them stay ahead of both regulators and competitors. Not every release worked. But there was always a next step.

Supply Chain Ownership and Distribution

A number of vape companies began owning or closely managing their manufacturing. Others forged reliable long-term contracts with known factories. Distribution networks were stitched together quickly—wholesalers, storefronts, direct-to-consumer channels, even affiliate programs. None of it was especially coordinated. That wasn’t the point. The focus was on reach and reliability.

Startups reliant on third parties for physical production or fulfilment face similar issues. Timelines slip. Costs climb. Demand shifts. Control matters, even partial control. Several vape brands were able to pivot during shortages or customs delays because they weren’t waiting for someone else’s schedule. This kind of infrastructure isn’t visible to the customer. But when it breaks, it shows.

Strategic Use of High-Risk Financial Services

Vape merchants are often locked out of mainstream payment gateways. High-risk classification puts them in a separate bucket—one with higher fees, lower trust, and frequent shutdowns. To operate at scale, many rely on partners who specialise in this category. Vape merchant accounts became a backbone service, not an afterthought.

Any startup building in a space considered fringe, nontraditional, or legally grey might need a similar path. That might mean working with payment processors outside the Stripe-Playbook. It might mean custom onboarding with banks or risk-tolerant legal teams. None of it is standard. But it’s necessary to function when you’re flagged by default.

Leveraging Community Without Overexposure

Before restrictions tightened, vape brands built followings through word-of-mouth, niche forums, and small influencer networks. They didn’t rely on traditional ads. The communities were self-sustaining. Content was often user-made. Loyalty ran deep, even when product lines changed or companies rebranded.

For startups, it’s a reminder that not every audience needs to be massive. Engagement beats reach. Several of the most durable vape companies were never household names. They just had customers who returned and referred others. That was enough.

Adapting Brand Strategy Under Scrutiny

As the public conversation shifted, so did the messaging. Packaging changed. Websites removed colour. The tone turned functional. Not because brands changed their core product, but because they adjusted to the environment around them.

Reputation management isn’t only about crisis control. It’s often quiet changes, made before the heat rises. In the vaping world, the brands that lasted weren’t the ones who fought the headlines. They were the ones who stepped sideways, stayed available, and kept shipping.

No Finish Line

The vaping industry didn’t build a blueprint. It made a set of moves that helped it continue. For startups navigating unstable markets, unpredictable rules, or hard-to-find infrastructure, these patterns might be more useful than polished case studies. They show how to keep operating when the rules aren’t stable, and when the tools aren’t set up for you.