Life science company eSense-Lab (ASX: ESE) has taken a step forward in commercialising its e-cigarette liquid, known as “e-juice” after receiving an additional order from its newly-established North American distributor VaporSpec.
The new order is for 10,000 30ml bottles of electronic cigarette liquid and follows up on a previous test shipment of 500 bottles. According to eSense, the order further demonstrates its “accelerating commercialisation strategy” which has seen the company enter supply agreements with both US and UK-based entities.
The product will be sold under VaporSpec’s white label brand and distributed in the US vaping sector that is currently blooming on the back of growing demand for an alternative to tobacco cigarettes.
Vaping is considered a safer alternative to smoking and is undergoing a surge in consumption, specifically by health-conscious cigarette consumers.
After testing the first shipment of 500 bottles, VaporSpec is continuing to fulfil orders for more e-juice as per the multi-year agreement signed between the e-Sense and VaporSpec in February this year.
On a broader basis, eSense has agreed to supply VaporSpec with a minimum quantity of 450,000 bottles of e-juice in the first year and up to 5 million bottles within three years.
The US e-liquid market comprises a significant portion of upcoming future growth.
According to BIS Research, the global e-liquid market is already a multi-billion-dollar industry that will continue to see strong growth over the coming years.
The research company says the market niche could hit US$32.8 billion (A$47 billion) by the year 2021 and is expected to grow to over US$50 billion in 2025, equivalent to around 10% of the existing tobacco market.
“I am extremely pleased to update the market on the continued supply of our products to VaporSpec based on the supply agreement signed earlier this year,” said Haim Cohen, chief executive officer of eSense.
“This is a real vote of confidence and shows the satisfaction and trust that VaporSpec has in our products,” said Mr Cohen.
The company’s move into e-juice supplements its existing operations focus on extracting terpenes from plants including cannabis for medical purposes and consumer products.
According to the company, its terpene-based products have a variety of flavours, fragrances and medicinal effects. In addition to e-cigarette liquids, terpenes are used in topical treatments, beverages, medicine, cosmetics and food.