The Department of Health and Human Services reports marijuana smokers increasing at a rate of about 6,600 new users each day. However, if you are in most urban areas, you are not going to be sharing second-hand smoke of any kind. This presents an interesting opportunity for the vape pen market. This smokeless delivery system will aid the treatment of medical marijuana recipients, and eventually become widespread as recreational use becomes mainstream.
There are many vape products that incinerate marijuana and produce a high potency vapor. However, the discretion and portability of vape pens is where many see the market headed.
There are two kinds of smokeless pens:
- Vape pens keep the marijuana in the pen chamber and heat it to 350 degrees. This releases THC and CBD particles. There is minimal smell and a cigarette-like experience.
- Oil pens are more like fountain pens using cartridges filled with concentrated oil. This delivery method is virtually odorless, and because of the concentrate, more potent.
Existing ECig companies are poised to take advantage of the vape boom. With New York and Florida restricting use to non-smokeables, they might even have an unfair advantage. According to Seeking Alpha, “The ECig industry has been gaining interest from much larger firms like MO and RAI giving more opportunity for smaller companies to take a piece of the market share.”
Two publicly traded companies are producing the pens. MCIG was early to market and is developing a second generation pen. The first generation pen sold out and the company is reported to have experienced trouble keeping up with demand.
PLPE (Vape Holdings) is run by former Growlife President Kyle Tracey. The word on this newer company is a high market cap relative to actual sales. However, it appears that the market opportunity is vast enough to continue to attract investors.
Other competitors that are not publicly traded are multiplying in a rush to market.
O.penVAPE, manufactures a pen that heats a cartridge filled with purified cannabis oil as an alternative to smoking the plant matter in a cigarette. O.penVAPE, which operates in Colorado, California and Washington, sells about 270,000 pens per month.
mCig sells an e-cigarette-style product for marijuana that is a hybrid between an e-cig and a joint. You can put in dry weed and heat it to the edge of combustion. The mCig is rechargeable and sells for the relatively low price of $10. It’s made in China. MCig also owns Vapolution, a firm that has developed a pure glass vaporizer.
Pax is a high-end vape product that markets itself on sleek design and variable heat settings. Low is 375 degrees Fahrenheit, the medium setting is 390, and the high setting is 410. It sells for around $250.
The benefits of a smokeless delivery method versus a traditional smoking method will no doubt have businesses and corporations inventing innovative ways to consume. As with many companies at the start of the marijuana boom, real profits and stable financial indicators remain as invisible as the smoke from vape pens.