The Vape Market Is Driving Serious Growth For Tilray In Canada

Although there has been a slowdown in news that is related to the vape market, the industry has been recording impressive growth so far this year and this is a trend that we are closely following. 

From California to British Columbia, cannabis retailers have been reporting increasing revenue from the sale of vapes and this is a trend that we are bullish on. Today, we want to provide an update on the vape market and highlight a few companies that are levered to this burgeoning vertical of the cannabis industry. 

Canada’s Cannabis 2.0 Market is Benefiting the Vape Industry 

In late 2019, Canada’s recreational cannabis market expanded the type of products that are available to consumers to include cannabis infused products as well as vape products. If you were to compare the amount of vape sales in the first quarter to 2020 to 2021, you will notice that British Columbia recorded a more than 125% increase in sales (according to GreenTank). 

Going forward, we expect Canada’s recreational cannabis market to support the vape industry and are favorable on how the vertical has been generating traction. There are several Canadian Licensed Producers (LPs) that are highly levered to the vape market and we are most excited about the opportunity for Tilray, Inc. (TSX: TLRY) (Nasdaq: TLRY), Canopy Growth Corporation (TSX: WEED) (Nasdaq: CGC), and Aleafia Health Inc. (TSX: AH) (OTC: ALEAF). 

Ontario reported even more impressive growth than British Columbia. When compared to the first quarter of 2020, the province recorded a more than 220% increase in sales in the first quarter of 2021. We are favorable on the province due to the size of the population and will continue to monitor how the vape industry performs. 

A Burgeoning Vertical to be Aware of

Although we are bullish on the Canadian vape market, we consider the opportunity in the US to be more significant due to the large population and the length of time that vapes have been allowed to be sold to consumers. From California to Colorado, there are several states on the west coast of the US with a large vape market. 

Over the next year, we expect to see additional multi-state operators (MSOs) in the US to acquire leading vape brands and expect this to prove to be a long-term catalyst for growth. In the US, there are a variety of expensive and cheap vape brands and this provides the consumers with more options when compared to Canada. We believe the diversity of the US vape market to be an attractive aspect of the vertical and will monitor how the industry continues to evolve.

If you are interested in learning more about the North American vape market, please send an email to support@technical420.com with the subject “North American Vape Market” to be added to our distribution list. 

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Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

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