“Nobody smokes marijuana anymore, they vape it.” - New York Times
That's not quite true. But it will be soon.
Vaping is set to up shake-up the booming marijuana industry and its still in the earliest stages of growth.
Traditional smoking of dried marijuana flower is currently the dominant consumption method. It makes up most of all cannabis sales.
Alternative consumption methods, including vaping and edibles, are less than half of the market today.
That's changing fast and industry is hitting a point where vape pens and marijuana extracts make up a huge share of the marijuana consumed and legal marijuana sales.
Just look at the tobacco industry. Smoking is in steady decline. Meanwhile, electronic cigarette smoking has soared.
Now the same conversion is set to sweep through the marijuana industry.
In the short term, 2019 is the year vaping marijuana will really take off and takes over a sizeable market share of the legal marijuana industry.
In the long term, the growth prospects are even higher.
The market data shows the turning point for vaping marijuana is here now.
According to ArcView Research, vaping accounted for just $200 million of all legal marijuana sales in 2015.
Since the marijuana industry was much smaller then, that meant that vaping accounted for just 4.2% of the total legal marijuana market.
Vaping has steadily increased since then. It has grown in both total revenue and total market share within the industry.
For example, last year the vape segment grew five-fold to a total of $1.1 billion. That’s 12.9% of the overall legal marijuana industry.
That’s huge growth for just a couple years. But its only the beginning.
Looking forward, the market share of vaping is only going higher.
ArcView projects record growth years indefinitely into the future for vaping.
By 2020 (which is just next year!) ArcView expects the vape segment of the legal marijuana industry more than triple to $3.9 billion.
As a result, vaping’s market share of the entire industry to climb to 21.9%.
By 2021 ArcView predicts vape sales surging by another $2.3 billion to a total of $5.2 billion which will account for 25% of the entire industry.
At that point, one in every four dollars spent on legal marijuana in the United States will be in vaping.
There's no getting around it. Vaping is going to make up a massive and ever-growing part of the legal marijuana industry.
The reasons are for the rise of vaping are many. Vapes can offer better taste, more convenience, more portability, and varying levels of strength. All of which are highly important to marijuana vape users.
The rise of vaping is a fundamental transformation all investors must be watching now.
There aren’t many products with sales which have tripled in the last few years. There are even less products with the potential to triple again.
Marijuana vaping is – and will be – the hot growth segment within the surging legal marijuana industry.
That's why we said the New York Times was technically wrong when it said, "Nobody smokes marijuana anymore, they vape it.”
But the rate at which the marijuana vaping is growing right now, the statement will be true in due time.
[Editor's note: the cover photo from this article was originally sourced from Flickr. This image was originally produced by https://vaping360.com/]