Vaping Propels Cannabis Concentrates Market To $3 Billion
Consumer spending on cannabis concentrates in the United States is projected to reach almost $3 billion in 2018 according to a report by Arcview Market Research in partnership with BDS Analytics. That’s an increase of 49% over last year’s sales. The only larger marijuana product category is smokeable flower. According to Arcview, by 2022, U.S. concentrate product sales are estimated to hit $8.4 billion and nearly match the $8.5 billion in flower sales forecast for that year.
Vaping is the main driver of concentrate sales and 58 percent of concentrate spending in 2018 will come from prefilled vaporizers. Linda Gilbert, BDS Analytics’ Managing Director of Consumer Insights says the two main reasons vaping is popular is that it is discrete and portable. Vaping emits less odor than bongs or marijuana cigarettes.
Vaping can also be less intimidating for new users said Brandon Wiegand, director of operations at The+Source, a pair of Nevada dispensaries. Vaporizers are pretty simple to use he said, and it's easy to control intake. Joints and bongs need to be lit with a match and then extinguished after use.
In 2014, concentrates made up about 10 percent of legal cannabis sold, according to the report. Now that number is up to 27 percent. Troy Dayton, CEO of the Arcview Group predicts other cannabis categories will soon grow rapidly as well. The jump in concentrate sales are “just the beginning of a revolution in how cannabis is consumed, now that it’s becoming legal around the world,” he said.
Arcview Market Research has published over 20 reports analyzing and forecasting the legal marijuana market, including the annual report, The State of Legal Marijuana Markets. The 26-plus page report on concentrates details the product sub-categories fueling the growth in concentrates sales.
One downside of vaporizer portability and its ability to be used discretely is that vaporizers can be used surreptitiously by underage consumers. Recently the FDA expressed concern over teenagers vaping flavored nicotine pods. Whatever changes come to vaporizer sales Gilbert said, protecting children from vaping is the right thing to do. It will be also good for the cannabis industry. “Anything that shows the industry has integrity is good for its long-term growth,” she said.
Original Article by Julie Weed at Forbes