• April 17, 2024

Cannabis And Nicotine Vape Markets Diverging

 Cannabis And Nicotine Vape Markets Diverging
Photo: Seth Michael

The cannabis vaping and tobacco vaping industries in the U.S. are on contrasting paths, largely shaped by regulatory dynamics, according to an article published by Bloomberg. While tobacco vaping faces increased restrictions on nicotine levels, flavored products and youth usage, the cannabis vape sector benefits from limited regulation, making it a significant player in the marijuana market.

The U.S. Food and Drug Administration’s ban on flavored vape products in particular has been detrimental to the nicotine vape sector, impacting prominent brands like Vuse Alto, which was recently the subject of an  FDA marketing denial order.

In comparison, cannabis vapes are growing rapidly, with an estimated $6.8 billion in sales for the year. These numbers might underestimate the market due to the influence of illicit cannabis sales, which are hard to track. However, as cannabis legalization progresses state by state, questions arise about when this sector might face more regulations.

Some suppliers to the nicotine vape business see substantial potential in the cannabis sector, as the U.S. vape parts market alone is estimated to be a $700 million opportunity. Meanwhile, the rise of disposable vapes also poses a challenge, as concerns about waste and youth appeal lead to potential regulatory hurdles.