TECH - US Vape Market Insights: Pricing Trends Rise of All-in-Ones And In-House Brands | Benzinga
With vape sales constituting nearly a quarter of the U.S. cannabis market, Pablo Zuanic, senior analyst and managing partner at Zuanic & Associates, explores the fundamental trends, challenges, and opportunities in this dynamic sector in his latest report.
"Vape is the 2nd largest category in the US, after flower, and 3rd largest in Canada. We estimate total legal cannabis sales in the US in 3Q23 reached $7.2Bn, at retail, which would imply legal vape sales of $1.7Bn in 3Q23 (~$6.8Bn annualized),” he said.
Vape Sales Growth And Market Position
Vape sales grew by 3% year-on-year in the third quarter of 2023, making it the second-largest category in the US cannabis market, following flower, with a 24% segment share.
Across 11 states analyzed vape sales lagged slightly behind the overall market pace, growing by 3.2% during the same period.
Price Deflation And Disposable Segment
Price deflation and the rise of disposable vapes pose challenges. Despite sales growth, prices fell significantly, with Massachusetts and Michigan experiencing the most significant drops at 37% and 33%, respectively.
The increasing popularity of disposable cannabis vape products may trigger regulatory challenges.
"The most substantial price declines occurred in Massachusetts (37%) and Michigan (33%). In other states, prices also saw significant reductions, with a 22% decrease in Illinois and Colorado, and mid to high teens drop in Nevada, ...