BOULDER, Colo.--(BUSINESS WIRE)--According to “Cannabis Vaping: Opportunities in an Uncertain Future,” released today by Arcview Market Research and BDS Analytics, cannabis vape sales plummeted from a peak of $160 million in August 2019 by $41 million in two months, following the U.S. Centers for Disease Control and Prevention (CDC) report of the first death attributable to e-cigarette, or vaping, product use associated lung injury (EVALI). The EVALI crisis grew quickly, with 2,290 cases of illness in 49 states, and 47 deaths in 25 states and the District of Columbia, from Aug. 23, 2019, to Nov. 20, 2019.
BDS Analytics’ GreenEdge® data indicates that after eight months of generally upward growth in combined monthly vape sales in Arizona, California, Colorado, Nevada and Oregon, sales plummeted 21% to $126 million in September and a further 5% in October to $119 million.
In 2018, sales of legal cannabis vape products in the U.S. totaled nearly $1.6 billion and, before the emergence of EVALI, the companies forecasted the market growing to $2.5 billion in 2019 and on to $10.6 billion in 2024. At the end of September, this forecast, and the future of cannabis vapes in general, was left in doubt.
“The data in this report is incontrovertible; consumers want to vape, but want to do so safely,” said Troy Dayton, CEO of The Arcview Group. “The fear of vaping illicit, dangerous products has put a damper on this segment of the cannabis industry. It is incumbent upon both the Federal and State governments to put into place a regulatory regime that protects consumers and advocates for highly-regulated, third party-tested concentrates.”
“Vapes have not just been the legal cannabis industry’s fastest-growing major product category, but also the focus of some of its most creative product-development and marketing initiatives,” said Tom Adams, Editor-in-Chief of Arcview Market Research and Managing Director of BDS Analytics Industry Intelligence. “The popularity of vaping is central pillar of our forecasts of the future growth of cannabis sales, so it’s crucial for cannabis industry professionals to understand the impact the vape crisis will have on the market, and how to best adjust business strategies in its wake.”
Among the key points covered in the report:
- BDS Analytics GreenEdge® data shows vape sales neared 25% combined cannabis product sales across Arizona, California, Colorado, Nevada and Oregon over the first three quarters of 2019.
- In California, for example, sales of concentrates—of which vapes are the fastest growing sub-sector—eclipsed flower sales for the first time in October 2018.
- The deaths were largely the result of consuming illicit market cannabis vape products, not those from the tested and regulated legal cannabis markets. In any case, the EVALI crisis underscores the importance and urgency behind making cannabis legal nationwide and enacting a comprehensive regulatory framework that enables further elimination of the illicit market.
- Whether the trend will continue into 2020 and beyond depends on the results of the continued testing of EVALI patients, development of testing protocols for legal vapes, potential moves by state regulators and, most importantly, whether consumers who were previously inclined to purchase cheaper vapes from the illicit market will decide to purchase from legal sources.
Sponsored by Advanced Vapor Devices, the 30-page report is available for $297 or as part of the Cannabis Intelligence Briefing Series subscription service from Arcview Market Research and BDS Analytics for $1,975.
About Arcview Market Research:
Since 2011, Arcview Market Research has published over 20 reports analyzing and forecasting the rapidly evolving cannabis space. Arcview’s flagship annual report, The State of Legal Marijuana Markets has become the industry standard for market analysis and data in the sector. In 2017, Arcview Market Research partnered with BDS Analytics to add more robust point-of-sale data and consumer insights to its offerings. Arcview Market Research is a project of The Arcview Group. Founded in 2010, The Arcview Group is responsible for a number of groundbreaking ventures in the cannabis industry. The Arcview Investor Network includes more than 600 accredited investors who have put more than $235 million behind 200 companies. In 2015 Arcview became a partner in Canopy, the first seed-stage mentor-driven business accelerator. Arcview is also co-founder of Cannasure Insurance Services, the leading provider of business insurance to the cannabis industry. Forbes Magazine recently named Arcview among the top 5 financial firms in the cannabis sector.
About BDS Analytics:
Headquartered in Boulder, Colo., BDS Analytics provides businesses with comprehensive, actionable, and accurate cannabis market intelligence and consumer research. The company provides a holistic understanding of the cannabis market by producing insights from dispensary point-of-sale systems through its market-leading GreenEdgeTM platform, driving consumer research with its Cannabis Insights Group, and generating market-wide cannabis industry financial projections through its Industry Intelligence Group. To learn more about how you can utilize BDS Analytics' superior market research, please visit www.bdsanalytics.com.
Advanced Vapor Devices:
Advanced Vapor Devices (AVD), exclusively designs and manufactures vaporizer cartridges and batteries for cannabis oils. All products are manufactured in a U.S. owned and managed factory certified as ISO 9001 and cGMP compliant. AVD controls its supply chain. Raw materials are sourced from only first-rate suppliers and pass through strict quality control and safety assurance testing throughout the manufacturing process. AVD cartridges meet stringent California Cat III heavy-metal regulations. All oil touching parts are non-toxic, inert, and pesticide-free. AVD cartridges are reputed not only for industry-leading reliability but for delivering flavors true to the strain. A proprietary ceramic core design, combined with innovative battery technology, and other design features, ensure a consistent vaping experience - from the first to the last draw.
For additional information, please visit www.avd710.com