Cannabis vape pens have become a commodity, with limited opportunities for LPs to differentiate their products. Both the hardware and the filler pose challenges in standing out from competitors.
Hardware, specifically cartridges, is controlled by specialized manufacturers, making it difficult for LPs to distinguish their vape pens from others on the market. Current hardware mechanisms are also similar, and revolutionary vaporizing mechanisms are lacking.
The filler, including live resin, live rosin, cannabis extract with captured terpenes, and non-cannabis terpenes and diluents, can be effortlessly replicated by competitors. LPs have attempted to differentiate their products by offering strain-specific extracts or unique flavors. However, this is challenging since flavors’ preferences change quickly, and LPs do not have control over the genetics or flavor formulation.
Despite the challenges of product differentiation, there are risks associated with the vape pen market. The NNCP’s passing in Canada does not provide safety endorsement for vape pens. While vaping is often considered safer than smoking, adding non-cannabis-originated chemicals can pose legal risks for LPs. Toxicity analyses are often based on chemicals added to the formulation rather than the vape’s actual chemical composition. The higher the vaping temperature, the greater the pyrolysis and oxidation products concentration, increasing potential health risks for consumers.
LPs can focus on branding and marketing efforts to overcome these challenges and risks, such as offering unique packaging or partnering with reputable hardware manufacturers. However, the reality is that the vape pen market is highly competitive and challenging for LPs to distinguish themselves, and the price will continue to drop.