Cannabis Vaporizer Market Trends

Growth Drivers

• Rise of cannabis tourism: The rapid rise of cannabis tourism is a major driver to boost sales of cannabis vaporizers. The footfall of tourists is increasing in places where cannabis consumption has been legalized. Cannabis tourism hotspots such as Amsterdam, Ohio, California, etc., are investing in cannabis-friendly spaces to leverage the rising tourism and to allow visitors to experience cannabis-based products such as vaporizers in cannabis cafes. This creates opportunities for manufacturers to position their products in the cannabis tourism spaces for greater sales.
  
  In June 2024, the California Department of Tax and Fee Administration reported USD 259.9 in cannabis tax revenue in the first quarter of 2024, with USD 107.4 million in sales tax from Cannabis products, indicating the surging sales of products such as cannabis vaporizers. Furthermore, the advent of tourism is leveraged by offering cannabis centric activities to support increased spending. For instance, in October 2022, Emerald Village (West Hollywood) celebrated a high year of activity as a new and premier cannabis travel destination and launched the West Hollywood cannabis dispensary.
• Increase in recreational marijuana sales and usage in medical settings: The cannabis vaporizer market size is positioned to expand owing to an increase in recreational marijuana sales, and growing usage in medical settings. The expanding legalization of cannabis in North America and Europe has led to a surge in sales of recreational marijuana, boosting the adoption of cannabis vaporizers due to the ease of marijuana delivery. For instance, in October 2024, the recreational sales of cannabis in Ohio were reported to be USD 131.8 million as per the Ohio Department of Commerce Division of Cannabis Control, with licensed dispensaries selling more than USD 11.5 million in adult-use sales.
  
  Furthermore, integration of cannabis vaporizer in medical settings for efficient delivery of the strain is poised to increase adoption rates. This positions the market for greater potential for expansion as nations are more bullish on medical use of cannabis rather than recreational. Companies can leverage the trends by positioning advanced vaporizers for medical use.
• Growing demand for cannabis concentrates: The increasing popularity of cannabis concentrates such as oils, gummies, distillates has created a parallel demand for vaporizers that can effectively handle these products. Concentrates offer higher potency and require controlled consumption. For instance, in December 2022, the King Palm brand released new weed and concentrate vaporizers, i.e., the Burj, the Giza, and the Noir. Additionally, dual-use vaporizers that can handle dry herb and concentrates expand the versatility of cannabis vaporizers and add to consumer appeal. With improvements in vaporizer manufacturing boosting their ease of use and versatility, the sector is poised to continue its growth.

Challenges

• Limitations in market expansion due to lack of cannabis acceptance: Despite growing acceptance of recreational cannabis, numerous countries have not legalized the use of cannabis and some are mulling curtailing the recreational use. In September 2024, the Ministry of Public Health of Thailand drafted a new bill to regulate the cannabis industry. Earlier, recreational use was legalized in the country but new bills such as this can cause barriers for the cannabis vaporizer market to expand. Manufacturers in the industry can face further challenges, owing to not being able to leverage the complete potential of the market due to regulatory hurdles.
• Competition from counterfeit and low-quality products: The market is plagued by the proliferation of counterfeit products in unregulated markets. Counterfeit and low-quality products can pose health risks to customers, depleting consumer trust and adoption rates. Furthermore, counterfeit products are sold at significantly lower rates creating undue competition for the established brands.