The Gateway For Cannabis Edible Businesses Into The Vape Market

Vape is one of the best options for cannabis edible brands to expand their business and now is the best time for them to introduce vape product lines. The argument is not told by a certain industry expert or institution but rather by data and information. Backed by substantial data and market insights, this article delves into why now is the opportune moment for cannabis edible businesses to diversify their product lines with vape offerings.

Vape Market Outpaces Edibles

The vape industry stands as a dynamic force, boasting twice the potential of its edible counterpart. According to Headset data, in 2023, category sales for Vape and Edible reached $4.1 billion (23.6% market share) and $2.0 billion (12.1% market share) respectively. Notably, the unit sales data illustrates an interesting data relationship, with vapor pens achieving a remarkable 162.3 million units sold, closely rivaled by edibles at 150.2 million units. This signifies underscores the higher average order value and lower operational costs associated with vapor pens.

Based on that, the vape market's allure lies not just in its substantial revenue figures but also in the efficiency and profitability afforded by the unique dynamics of vapor pen consumption.

40% of Matured Cannabis Edible Brands Venture into Vape

In a comprehensive analysis backed by Headset data, the statistics of the top 30 cannabis edible brands across 10 states in the United States (AC, CA, CO, IL, MA, MD, MI, NV, OR, WA) reveal a notable market trend. Among these leading brands, 40% of them have strategically incorporated vape products into their offerings.

Additionally, the data analysis exposes a compelling truth – edible companies with vape offerings experience faster growth (13%) and more resilience (5%) against market downturns compared to those exclusively in edibles. Engaging in vape production not only ensures more rapid growth but also contributes to a steadier revenue stream, fostering diversification that proves invaluable for risk mitigation.

As cannabis market dynamics continue to evolve, the infusion of vape offerings into the product portfolio stands as a significant move for edible brands striving for sustained success. However, not every vape category aligns seamlessly with edible businesses. Based on its variable product design and use portability, disposable vaporizers are the ideal product solution for cannabis edible brands.

Disposable is the Fastest-Growing Cannabis Vape Category

As the cannabis legalization momentum accelerates, disposable products emerge as the fastest-growing segment, boasting a compound annual growth rate of 35.72% from 2021 to 2023, while 510 products languish at -2.7%. The disposable category continues its ascent, with new standout brands constantly entering the market, making it an ideal product sector for emerging brands.

Further validation comes from the more mature nicotine vapor market. In 2021, disposable nicotine e-cigarettes claimed a 25% market share, surging to an impressive 42% in 2023, far surpassing other vape hardware categories including pod-system categories.

Successful Practices from Kushy Punch & Flav

The power of disposable vapes is supported not only by data but also by the compelling success stories of cannabis edible business leaders like Kushy Punch and Flav.

Facing challenges in 2020, including illegal product manufacturing impacting sales, Kushy Punch ingeniously rebounded in 2022 by introducing a range of disposable vape pens. This strategic move swiftly catapulted Kushy Punch's sales, nearly surpassing pre-scandal levels. Following suit, Flav adopted a similar product strategy, finding success by unveiling a series of uniquely designed, vibrant disposable vapes that resonate with a younger, fashion-forward audience. Initially, the vape category was counting only 20% of Flav's revenue, by the end of 2023, it had grown to approximately 80%.

The key to the successful transformation of Kushy Punch and Flav lies in their vaporizer strategy, focusing on the introduction of disposable vapes and the selection of flavored oil. Both companies opted for personalized and meticulously designed disposable products, notably unique vape pens rather than conventional styles, earning them user favor.

Noteworthy is the fact that both companies replicated popular flavors from their cannabis edibles into their vaping products. Flavored oil has emerged as a major trend in cannabis vapor consumption since last year. Flavored vapes rank in the top 20 products in 10 states where recreational cannabis is legalized. Compared with companies exclusively on vapes, edible brands have more advantages in introducing "flavored oil" vapes.

ArtrixDemo — An Edible You Can Vape

Demo, the world's smallest cannabis vape, draws inspiration from travel-size perfumes, with a capacity of only 0.1mL, producing at least 10 aromatic puffs. It stands as the best device to bring popular edible flavors into each puff.

Impressively compact and versatile, it is ideal for creating vibrant mini cannabis vaporizer sets or serving as a promotional travel-size for a delightful vaping experience. Whether for loyal customers or new consumer segments, ArtrixDemo is an excellent product solution for entering new markets and building brand trust for cannabis edible businesses.

This post was authored by an external contributor and does not represent Benzinga's opinions and has not been edited for content. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice. Benzinga does not make any recommendation to buy or sell any security or any representation about the financial condition of any company.