Vape pens will dominate cannabis by 2020 (and beyond)
Travis Lachner ??
Creative Director & Content Coach ?? Helping elite founders get high-ticket leads on autopilot with a custom-fit content system
Vaporizer pens and cartridges are on track to be the most popular cannabis products. Demand for vape cartridge refills quadrupled in 2016 with a 400% increase. (Eaze Insights)
By 2020, I believe over ? of marijuana retail sales will be vape pens and cartridges.
The product may be fairly new; but the business model is tried-and-true.
Vape Pens: The “razor blade model” of cannabis products.
The vape pen concept is an old-school classic.
It's a simple strategy:
- Sell a primary product for a low profit. (the vape pen)
- Sell the required refills for higher profit. (the concentrate cartridges)
It is dubbed the “razor blade model” - as a nod to the shaving industry’s profitable concept of selling individual razor blade cartridges.
Printers and ink cartridges work the same way. The business model has been around for decades. And it is popular because it works.
Convenience is catching on.
Once you own a vape pen, you are more likely to purchase refills for it. They are simple and easy to use. (ideally)
Sleek and stylish vape designs fight for the open space of pockets and purses. Companies know it has long-term ROI.
Consumers develop habits - and eventually brand loyalty. This loyalty becomes habitual spending on cartridge refills. Essentially; it is the ideal customer of recurring revenue.
Convenience is the primary selling point for vape pens. People are straying away from traditional multi-step smoking processes. (grinding, rolling, packing, debowling, etc.)
Vape pen consumers avoid the kief-dusted fingers and sticky tabletop setups. Instead, they press a smooth LED-lit button to enjoy their cannabis.
Some vape pens don’t even have a button - you just inhale; and it works like magic.
As tedious tasks of smoking are replaced with electronic one-touch (or no-touch) alternatives; we’re entering a new era of cannabis consumption.
Apparently, convenience is catching on.
2014 - 2015
Vape cartridges are the fastest growing type of concentrate (in Colorado)
(vape pen cartridges are the gold-orange color)
2015 - 2016
Vape cartridge demand jumps 400% (in California)
(vape pen cartridges are the gold-orange color)
2017 - beyond
Vape pens and cartridges will capture ? of all retail marijuana sales by 2020
Based on nationwide consumer research and cannabis data from California and Colorado; I believe vape pens will become the most popular way of consuming cannabis.
By 2020, I envision the following market share distribution:
- ~ 1/3 flower and bud products
- ~ 1/3 vape pens and cartridges
- ~ 1/3 concentrates, edibles, and topicals
Beyond 2020, I believe vape pens will capture a majority of sales in many states.
The evolution of innovation: adapt or die.
The cannabis industry evolves quickly. Regulations, products, prices, and demands shift often.
Professional agility is mandatory for survival
Companies must be mindful of modern market conditions and trends. They must use insight and foresight to adapt with the market. Otherwise, they risk mistargeting, overstocking/understocking, and reducing cashflow.
Consumer data and research helps identify market trends and insights. Rising trends (like vape cartridges) empower companies to make better decisions. And target customers more effectively.
The lesson to learn here?
Be prepared to adapt with speed and confidence.
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What do you think?
- Which type of products will be most popular in cannabis?
- What demographics/psychographics should we target?
- Will vape pens last long-term or is it just a trend?
Like, comment, and share below:
深圳市仁义和兴塑胶五金制品有限公司 - 高级销售
7 年Amazing, but I can't agree with you any more!
CEO Evergreen Buzz @ Cannabis.net | Internet Marketing, UnlovableDad Brands
7 年disposible vapes will be a massive category, think disposible razors
Infused CPG Pioneer | Founder/President CCMA | Advisor | Policy Junkie
7 年Opinions are like Priuses...
Managing Principal at BlackFox Capital
7 年A large portion of the cannabis culture prides itself on natural consumption, natural medication, health etc...from my experience vaping is misunderstood or rejected by a large demographic of smokers and considered a synthetic antithesis to natural flower. New consumers are fickle; they might make a first purchase out of curiosity, but where would the quantifiable loyalty come from? Do you expect them to reject flower and switch, combine the ways they smoke etc..? These are all strategic questions to ask when targeting the consumer. If vape companies want to dominate, it's imperative to remove this "unnatural" stigma in the consumer mind and clearly articulate the advantages. Short-term revenue spikes are fairly easy to create at this point; long-term consistency in consumer purchasing is the challenge. And with a growing saturated market, these companies should take time to think. Think unselfishly and objectively. Think about the consumer. Think long term. In my opinion, the companies that focuses on this will have a better competitive edge to garner a larger market share.