There is no doubt that the vape crisis is affecting our industry.
And while the Center for Disease Control recently put out a bulletin stating that Vitamin E acetate is the problem because it turns dangerous once heated and inhaled, we regrettably expect the number of people harmed to only continue to grow.
Unfortunately, the illicit market will continue to flourish – and those parties that produce illegal cartridges will not suddenly change their ways, nor will consumers stop using illicit vapes when legal options are not readily available.
In states like California, where the number of legal, compliant shops is way too low to support the population, and cities have banned cannabis even when their voters have approved it, the illicit market will continue to thrive. In fact, the state’s illegal market, valued at about $9 billion, currently dwarfs the legal marketplace.
Accordingly, the vaping crisis can only be solved when legislators not only vote to legalize cannabis, but also establish sensible regulations that ensure access and reduce high taxes, in order to help dry up the illicit market.
Against this gloomy backdrop, there is plenty of room for optimism.
At Hippo, we are seeing many clients move into new product categories with enthusiasm and vigor. Some manufacturers and brands are starting to increase production of pre-rolls.
There will also be opportunity for vaping companies that weather the storm and are able to demonstrate that they produce a safe product. As the market matures, the companies that are committed to safety will be left standing.
Additionally, some companies are working on developing new types of vaping devices, including one that uses a laser to heat the oil, presumably to lessen the risk of health concerns.
While we are not yet convinced that this Darth Vader Vape will be the answer to the current crisis, we are certain that the legal cannabis industry will ride out these heavy storms, aided in some ways by these new spotlights placed on the illicit market and the critical importance of a safe and regulated system.