Leveraging Market Insights to Build a Successful Vape Brand
Introduction
The following insights are based on data and analysis provided by BDSA, highlighting the competitive landscape of the cannabis industry in 2024. Brands and retailers constantly seek innovative products to boost sales and gain market share. While flower products remain the largest category, vape and edible products continue to show significant growth. One notable trend is the rapid expansion of disposable vape products, which have seen a dramatic increase in market share over the past two years.
Understanding Disposable Vape Dynamics
Market Growth and Consumer Preferences
Between Q1 2022 and Q1 2024, the market share of disposable vape products grew by 92%, now accounting for 25% of vape sales across BDSA-tracked markets. The primary drivers behind this growth are ease of use (cited by 56% of consumers) and convenience (cited by 44%). These factors make disposable vapes appealing, positioning them for continued strong growth.
Product Category Differences
While distillate products dominate both the cartridge and disposable subcategories, there are some key differences. Vape cartridges see a higher share of sales from Distillate, Oil, and Rosin, whereas disposable vapes have more products labeled as fruit-flavored or "blends" rather than strain-specific. This distinction is crucial for brands that tailor their product offerings to meet consumer preferences.
Top-Performing Disposable Vape Brands
Fuzed
Rapid growth in California, Maryland, and Ohio.
Sales increased by 1944% from Q1 2023 to Q1 2024, reaching over $4M in Q1 2024.
Known for fruit-flavored vapes.
Cake
Strong presence in Arizona and California.
Sales grew by 1091% from Q1 2023 to Q1 2024, reaching $6.4M in Q1 2024.
Offers "designer distillate" products with unique fruit-forward flavors.
Select
Number one best-selling disposable brand in BDSA-tracked markets.
Sales increased by 577% from Q1 2023 to Q1 2024, totaling $32M in Q1 2024.
Available across 11 markets, with significant sales in Illinois and New Jersey.
Gold Flora
Fifth best-selling brand in California.
Sales increased by 471% from Q1 2023 to Q1 2024, reaching $3.5M in Q1 2024.
The portfolio includes strain-specific products, fruit-flavored products, and rosin disposables.
Bloom
Fifth best-selling disposable brand across all BDSA-tracked markets.
Sales in California increased by 324% from Q1 2023 to Q1 2024, reaching $12M.
They are known for strain-specific distillate disposables.
Implications for Vape Brand Development
Leveraging these market insights can help clients build or adjust their vape brand portfolios effectively. Understanding consumer preferences, such as the demand for ease of use and convenience, is critical. Additionally, recognizing the success factors behind top-performing brands can guide strategic decisions in product development, marketing, and distribution.
Strategic Recommendations
Focus on Convenience: Emphasize the ease of use and portability of disposable vapes in your marketing strategies.
Diversify Flavor Offerings: Incorporate a range of fruit-flavored and blended products to appeal to a broader consumer base.
Data-Driven Decisions: Utilize BDSA’s data tools to fine-tune pricing, promotions, and product assortments.
Market Expansion: Consider expanding into new markets with high growth potential, following the example of successful brands like Select and Fuzed.
Consumer Insights: Apply anthropological insights to understand and anticipate consumer needs, ensuring your product offerings align with market demand.
Conclusion
The rapid growth of disposable vape products presents a significant opportunity for brands looking to expand their portfolios. By leveraging data-driven insights and understanding consumer preferences, cannabis consulting firms like Anthropologist can help clients navigate the competitive landscape and succeed in the evolving cannabis market.
