After experiencing major disruptions being the subject of the first public health crisis in the cannabis industry, vape has solidified its place as a top cannabis product category. As concern grew over the E-cigarette and Vaping Associated Lung Injury crisis in the fall/summer of 2019, monthly vape dollar sales across BDSA-tracked markets dropped over 10% between August 2019 and November 2019. This drop signaled trouble for this fast-growing segment of the industry. However, BDSA-tracked legal cannabis vape sales rebounded after this low point in November 2019 as news spread that EVALI was linked to Vitamin E acetate additives in illicit vapes.
While vape sales slowed slightly during the early months of the pandemic, the category is once again seeing strong performance, making up ~25% of total dollar sales across BDSA-tracked markets (AZ, CA, CO, FL, IL, MA, MD, MI, MO, NV, OR, PA) in Q4 2021. In some states with regulations that restrict other cannabis form factors, Vape holds an even more dominant share of total dollar sales. In the PA medical market, which does not allow sales of most edible products, Vape accounted for ~35% of total dollar sales in Q4 2021.
BDSA’s most recent round of Consumer Insights supports the strength of this category, as consumers claim that ease of use (~55%), portability/convenience (~40%) and discretion (~35%) are their top reasons for choosing vapes, product benefits that few other inhalable product categories provide. These benefits give the Vape category broad appeal amongst Inhalable Consumers (the largest segment of Consumers), so it is not surprising that Vape products played a huge role in deciding the top brands across several markets in 2021.
- Two of the top five brands by dollar sales for 2021 in fast-growing AZ market and the massive CA market were brands with a heavy focus on Vape products.
- Timeless Vapes
- Four of the five top brands across all BDSA-tracked markets (AZ, CA, CO, FL, IL, MA, MD, MI, MO, NV, OR, PA) have vape products as part of their product portfolio.
- Rythm, Stiiizy, Cresco Cannabis, Select
While some concerns about the health risks of vaping linger, as evidenced by an October 2021 study suggesting that cannabis vapes may carry the risk of heavy metal exposure, BDSA expects the vape technologies will adapt further to mitigate health risks and that vape products will continue to hold a 20+% share of sales in legal cannabis markets.
Here Are Some of the Vape Brands to Watch in 2022
- Timeless Vapes: The number one ranked brand in the AZ market and a top ten ranked brand across all BDSA-tracked markets, Timeless Vapes has fully capitalized on the sales boom brought on by the launch of Adult-Use sales. Timeless Vapes brought in ~$75 million in sales in 2021, and has used their brand dominance in AZ to launch a successful “house of brands,” including Prerolled brands JOILO and Tumble.
- Stiiizy: The number one ranked brand overall in the CA market and the number one ranked Vape brand across all BDSA-tracked markets in 2021, Stiiizy has shown how a strong vape brand can dominate even the most competitive legal cannabis markets. Stiiizy has even been able to expand on their success as a vape brand to launch Flower, Dabbable and Edible product lines, a successful lifestyle brand, and open a string of Stiiizy retail storefronts across CA.
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