With medical and recreational use constantly on the rise, the colossal cannabis industry has created a bounty of side markets. One such booming business is the vaporizer industry – and the discreet and arguably healthier option to smoking is only gaining popularity as more states launch their legal marijuana markets.
A study done by Dartmouth researchers in 2016 concluded that “those that preferred vaping reported it to be healthier, better tasting, produced better effects, and more satisfying.”
It’s healthy because it doesn’t combust the ganja, therefore harmful toxins don’t get released into one’s body. And a lovely little bonus? More THC is released than if you simply smoked your weed in a bowl or joint.
Vaping devices are small and portable, capable of being as tiny as a ballpoint pen. The vapor released is nearly odorless, allowing users to be less conspicuous with their use.
With all the upsides to using vaporizers, getting into this industry can be a highly profitable venture—plus, these businesses are truly improving people’s lives, especially for medical patients that need the cleanest high.
“The vaporizer industry is one of the most profitable and fastest growing sectors within the cannabis space, due to a variety of factors ranging from rapid technology growth to the trend towards cannabis vaping. Given that vaporizers don’t fall under the umbrella of federal illegality, the space is largely looked at as one of the safer entry points for would-be cannabis entrepreneurs as well,” says Pantelis Ataliotis, President of Dr. Dabber, a vaporizer company that has produced the first portable electronic rig.
The ganjapreneur also advises that anyone interested in getting involved in the vaporizer industry “should be sure to do their due diligence and be willing to work at a fast pace—a wide range of opportunities lie in store for anyone that’s willing to put in the necessary effort.”
Business is booming! And many people are scrambling to get into the industry and make a profit.
“Within the cannabis industry, the vaporizer segment is definitely a very crowded area,” advises Mike Bologna, CEO of Dipstick Vapes, a popular vaporizer company that develops high-end, innovative products for the ever-expanding market. Dipstick Vapes created the Dipper, a vapor tip atomizer that allows for dabbing without a rig and torch or any loading required.
Bologna says companies looking to succeed with new or existing vaporizers should focus intently on improving the consumer experience. “By ensuring the sales cycle is transparent, the consumption experience is simple and enjoyable, and any product issues are resolved quickly and politely, a company can have a positive impact on their customers and their own corporate bottom line,” he said.
Unfortunately, there is a downside to this industry; because cannabis is still illegal in many places, advertising can be tricky. Richard Huang, Co-Founder of Cloudious9—a high-tech vaporizer company that developed the first-ever vaporizer with a built-in water filtration system that allows the user to burn or vaporize their product—explains:
“While the perceived profit margin is high for vaporizers, that is directly due to the difficulty to advertise in this space. Ad platforms are lagging behind the state of the vaporizer acceptance zeitgeist. Google and Facebook don’t allow vaporizer advertising. Because of this, advertising is costly, is hard to do with direct response, and is difficult to scale. Costs for both advertising and physical product would fall if advertising were on major platforms—because more units would be moving.”
Over time this issue should resolve itself, as more and more states legalize medical and recreational cannabis, further legitimizing the industry.
Richard Huang encourages those that want to get involved in this volatile market to be innovative and to constantly aim to give the user new and better experiences. “My advice is to make a cool product, find a good PR firm, and explore sponsored content or limited ad networks,” he recommends.
We are living in a very exciting and novel time, as a market that was completely illegal not long ago begins to become increasingly mainstream. More and more people are demanding high-quality technology to improve their cannabis experience, and the vaporizer industry is hugely helping fill that demand.