1. A Booming Market
The U.S. cannabis vape market generated $1.73 billion in 2024, and is expected to nearly double to $3.68 billion by 2030, growing at a 13.4% CAGR from 2025 to 2030 .
Additionally, broader forecasts estimate the industry-wise vaporizer market reaching $6.29 billion in 2025, with long-term growth toward $34.7 billion by 2037, representing a global CAGR near 14.9%
2. Drivers of Growth
· Legalization momentum: As of 2025, more than 23 states allow recreational cannabis and 37 allow medical cannabis use, expanding consumer access and fueling vape device demand .
· Preference among younger consumers: Gen Z and Millennials account for over 60–70% of vape usage, preferring the discretion, portability, and potency that oil pens offer .
· Health and convenience: Vapes are seen as a cleaner alternative to smoking, offering fast onset and minimal odor—qualities appealing to medical and rec users alike .
3. Emerging Trends & Innovation
· Disposable pens dominate: Budget-friendly, pre-filled vape pens are the fastest-growing subcategory—California disposable vape sales climbed 39% year-over year in 2023, with similar growth in Colorado, Michigan, and Arizona .
· Premium extracts surge: Consumers increasingly demand live resin and live rosin tinctures for richer terpene flavor and potency, pushing hardware makers to innovate with temperature control and enhanced heating systems.
· Smart & sustainable designs: Modern devices now feature app integration, digital displays, dosage tracking, rechargeable batteries, and recyclable cartridges—all responding to tech-savvy, eco-conscious consumer demand .
4. Competitive Landscape
· The market is highly fragmented, with national brands like Stiiizy and Select gaining traction but still facing state-specific competition.
5. Regulatory & Risk Overview
· Public health concerns persist: The 2019–2020 EVALI outbreak—largely linked to illicit THC vape cartridges containing vitamin E acetate—resulted in over 2,800 hospitalizations and 68 deaths in the U.S., prompting safety warnings and tighter oversight on unregulated products .
· Tariffs and supply chain pressure: Recent U.S. tariffs on imported vape hardware (from China, Canada, etc.) are set to raise costs for legitimate companies, potentially driving price hikes and pushing consumers toward illicit markets .
6. Consumption Patterns & Seasonality
· In early 2025, while overall cannabis orders slowed in January, vape device sales grew by 21.5% in orders and 25.9% in revenue, highlighting its resilience amid seasonal dips .
· Broader retail cannabis sales hit $32 billion annual run rates in mid 2024, with consumer access expanding via new licenses in markets like New York, Michigan, and Maryland .
Demand Outlook Summary
|
Factor |
Trend/Impact |
|
Market value |
$1.7B in 2024; forecasted ~$3.7B by 2030 |
|
CAGR |
13–15% annually |
|
Consumer base |
Young adults, medical patients |
|
Segment growth |
Disposables > Premium concentrates |
|
Product features |
Smart dosing, sustainability, flavor fidelity |
|
Risks |
Health concerns, regulation, tariffs |
|
Market structure |
Fragmented, regional strongholds, brand partnerships |
