Legalization of cannabis has made consumers and entrepreneurs hungry for more than just munchies - they want new innovation!
The result? A flurry of R&D activity to bring new cannabis tech hardware devices to market. The most popular devices are vaporizers - those handheld devices that heat up marijuana flower, oil or extracts into vapor that can be consumed.
Here are three reasons driving the investment into new cannabis vape designs and why this trend is set to continue for a while.
1) Vaping cannabis is becoming more popular than smoking
As the legal cannabis market matures, health-conscious consumers are turning to vape devices as their preferred method for consumption. This choice is reflected in the vape sales of mature cannabis markets like California and Colorado where upwards of 30% of all sales are in the vape category, a trend that is forecasted to increase. The chart below shows the growith in vaporizers as the preferred method for cannabis consumption across the US.
In newer Cannabis markets like Canada, Michigan and Israel the vape market is still you young and ready to grow. Leaving lots of opporunity for vape technology.
The challenge for vape manufacturers is to continue to evolve their offerings to the growing market of cannabis vape consumers. This means moving away from the traditional e-cigarette pen like form factor and exploring new user-friendly designs.
2) Cannabis vape technology is evolving, fast
The traditional e-cigarette style cannabis vape is fast becoming a relic of the past. New vapes designs are emerging from companies across the globe. They include a host of new features including accurate dosages, disposable cartridges, bluetooth connected apps, biometric tracking and tamper-proof safety designs.
The result is a constant churn of cannabis vape tech with new devices launching often. This creates an opportunity for new vape developers to enter the cannabis market. Examples of global vape technology that are starting to take off right now include:
|Dosist||Santa Monica, USA||Disposable Vape Pen|
|Tablee Technologies||Toronto, Canada||Medicinal Cannabis Vaporizer|
|Selective Laser Melting (SLM)||Good||Expensive|
There are many more vapes in product development now as the market opportunity is huge and set to grow for years to come.
3) Cannabis vape device companies partner with cannabis producers
Cannabis regulations for device manufacturers are a work in progress. This creates a big risk for entrepreneurs and companies looking to invest in the Cannabis tech space. For example the most valuable public cannabis company in the US, Curaleaf got in hot water by going to market with disposable vape pens not approved by the FDA.
To limit risk in cannabis tech hardware development, the solution is to separate cannabis cultivation and production away from consumption devices. This allows companies to specialize in either hardware or cultivation and ease the regulatory burden.
Examples of cannabis hardware and cultivation companies who have recently partnered together include:
- Organigram Holdings (Cannabis Producer) and Feather Company (Vape Hardware)
- Pax Labs (Vape Hardware) signs agreement with 4 Canadian cannabis producers ( Aphria, Aurora, Organigram and Supreme Cannabis)
- Ace Valley (Disposable Vape Hardware) and MediPharm (Cannabis extract producer)
- Green Tank (Vaporizer Hardware) and Up Cannabis (Cannabis producer)