November 20, 2024
Build a Dynamic Vape Portfolio Primed for Growth in Today’s Market. Start Here.
The cannabis vape market is exploding, and competition to capture the estimated 18.1% combined annual growth rate through 2027 is fierce (BDSA Consumer Insights). If you’re an entrepreneur or product innovator, you already know that standing out is about more than just great products—it’s about offering something for everyone.
According to Headset, nearly 60% of vape consumers prioritize flavor in their purchasing decisions, particularly those in the rec space. But the spectrum of flavor is as varied as the consumers who seek it out.
That’s why diversifying your portfolio with a range of flavor profiles and price points can help you expand your reach, maximize your revenue, and increase your possibility for success.
What are the Key Cannabis Vape Customer Segments?
1. The Flavor Seeker
- Who they are: Emerging markets. Trend-driven, younger users, or people newer to cannabis
- What they want: Bold, exciting flavors like tropical fruits, desserts, or nostalgic candy shop favorites
- Product Concept:
- Distillate + Flavor-Forward Botanical Terpenes: Pineapple Whip, Strawberry Jelly, Cotton Candy, Lychee Dream, Churroz, Atomic Pop
- Consumer Price Point: $
- Business Case: Nearly 60% of consumers prioritize flavor in their purchasing decisions, particularly in the rec space (Headset). Expand your reach with products tailored to the largest and fastest-growing segments. Gen Z (21-27) + Millennials (28-43) make up 70.8% of all vape pen sales. Gen Z is the fastest-growing cannabis consumer group (Headset). Gen Z is the first group to show a preference for vape pens (Green Market Reports).
2. The Everyday Enthusiast
- Who they are: Everyday users who value authentic cannabis flavors
- What they want: Strain-specific vapes with true-to-plant profiles. OG strains are always popular. But look out for the newer trending strains that are gaining headway with this group
- Product Concept:
- Distillate + Cultivar Series Canna-forward Botanical Terpenes: GDP, Pineapple Express, OG Kush, Amnesia, Donny Burger, Gelonade
- Consumer Price Point ($-$$$$): $
- Business Case: Strain name recognition is the largest driver of consumer choice in the canna-forward vape space. Diversify with a combination of classic and trending strains to reach consumers looking for a reliable experience plus those who want something new and trending.
3. The Connoisseur’s Connoisseur
- Who they are: A small but loud group focused on authenticity and willing to pay for it
- What they want: Full-spectrum effects and top-tier flavor and quality
- Product Concept:
- Live Resin Extract + Live Resin Terpenes: Super Lemon Haze, Jack, GG#4, Permanent Marker, Gelatti, Rainbow Zelato
- Consumer Price Point: $$$$
- Business Case: Live Resin Terpenes allow you to scale across markets with a consistent flavor, all while simplifying your supply chain. You can also create multiple SKUs from the same batch of a high-yielding cultivar by dividing it into batches and adding a different strain of Live Resin to each batch
4. The Weekend Connoisseur
- Who they are: Savvy, cost-conscious consumers who want a full-spectrum experience without breaking the bank
- What they want: Live resin-infused vape with incredible flavor at a great price
- Product Concept:
- 100% Cannabis: Live Resin Terpenes + Distillate: Wedding Cake, GMO Cookies, Laughing Buddha, Kush Mintz, Horchata, Jealousy OG
- Canna-Forward: Live Resin Terpenes + Cultivar Series Strains: Gelatti + NYC Diesel; Granddaddy Purple + Pink Rozay; Kush Mintz + Amnesia
- Flavor-Forward: Live Resin Terpenes + Infused Strains or Flavors: Super Lemon Haze + Lemonade Kush; Jack + Strawberry Jelly; Papayaz + Papaya Punch
- Consumer Price Point: $$-$$$
- Business Case: Create a more premium, differentiated product to meet the demands of a growing consumer base that wants full spectrum effects and great flavor without the hefty price tag. Fight price compression by charging a more premium price with a minimal investment
Why You Need a Diverse Portfolio
- Reach More Customers: Each segment brings unique preferences to the table. By covering all the bases, you can serve a bigger audience.
- Adapt to Trends: Consumer tastes change fast—offering variety keeps you ahead of the curve.
- Encourage Cross-Selling: A flavor seeker might upgrade to live resin for special occasions, or an enthusiast might grab a fun flavor for a party.
- Protect Your Brand: Diversifying reduces risks if one segment dips while another thrives.
What’s the Takeaway?
Building a dynamic product portfolio is your ticket to growth. By understanding your customers and offering a mix of flavor-forward, cannabis-forward, live resin, and Live Resin Terpene-Infused vapes, you’ll stay competitive, boost revenue, and give your brand the staying power it needs in this fast-moving market.
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