CBD Vapes Market Report

The growth of the CBD vapes market can be attributed to several factors, including the legalization of cannabis for medical and recreational purposes in several countries has led to an increase in demand for CBD products, including vapes. Growing awareness about the health benefits of CBD, many people are turning to CBD as a natural remedy for a range of health issues, including anxiety, pain, and insomnia. CBD vapes are easy to use and provide a discreet way to consume CBD, making them appealing to many users and companies are continually developing new and innovative products, such as disposable vape pens, that cater to the preferences and needs of different consumers. Overall, the CBD vapes market is expected to continue to grow in the coming years as more people become aware of the potential health benefits of CBD and the range of products available in the market expands. However, it is important to note that the regulatory environment around CBD remains complex and may impact the growth and development of the industry.

Some significant barriers hamper the growth of the CBD vape market. Initially, severe regulatory restrictions and the high price of chitosan products pose significant challenges. Furthermore, the prevalent issue of black-market or counterfeit THC-containing products masquerading as chitosan is a serious concern, severely hampering market growth. This change challenges consumer trust poses serious health risks. For instance, as of Feb 2020, the US observed tragic consequences due to synthetic cannabis consumption, with over 68 fatalities and more than 2,800 hospitalizations attributed to vaping-related lung damage (EVALI). These events have strengthened regulatory scrutiny and public incredulity towards CBD vapes, reducing consumer demand and market potential. Overcoming these concerns needs rigorous enforcement of quality regulatory measures, strong regulatory oversight, and heightened consumer education.

The CBD market is rapidly expanding, with companies focused on increasing its product offerings and entering new markets to attract new consumers. This high competition in the global market is driving innovation, with various companies launching new and innovative products to differentiate themselves from other competitors. For instance, in July 2024, CBD Life Sciences Inc., via its subsidiary The CBD Vault Inc., a leader in the CBD sector, had introduced its latest innovation, Delta 8 CBD Vape Cartridges. Furthermore, British American Tobacco plc, launched its first CBD vaping product ‘VUSE CBD Zone’ in Jan 2021, the new range is available in three flavours: mint, mango and berry; and two strengths – 50mg and 100mg. Despite the potential for high profits, the CBD market is fragmented due to the presence of a large number of players, ranging from small start-ups to established multinational corporations. The CBD market is highly competitive, with a large number of players focused on expanding product offerings and entering new markets to attract new consumers. To remain competitive, companies are increasingly partnering with other companies to expand distribution networks, increase consumer base and launch innovative new products. As the market continues to evolve, it will be essential for companies to stay up-to-date with changing consumer preferences and regulations to succeed in the long run.

The increasing awareness of CBD's potential therapeutic benefits has led to a rise in demand for CBD products, including CBD vapes. North America region will hold a considerable market share over the forecast period, as the rising acceptance of various vaping devices among millennials and Gen Z will drive the expansion of the CBD vapes market. According to the NCBI, CBD vaping products, a cannabis-derived component used in wellness products, are available in all 50 US states. CBD vaping among high school seniors in the United States increased from 5.0% to 14.0% between 2017 and 2019. The presence of large number of manufacturers, as well as the approval of the United States Farm Bill in 2018, are two major reasons driving the regional market. North America is often regarded as the most progressive region for cannabis and its derivatives, including CBD.

European region is anticipated to witness significant growth as the UK Parliament legalised various cannabinoids, including CBD and CBDa, in 2018. Sales of CBD vapes have increased in UK, Germany and France. In Europe, CBD products containing 0.2% THC or less are legal in most countries, making it easier for people to access these products. However, each country in Europe has its own set of rules and regulations. In Luxembourg and Australia, CBD products with 0.3% THC content are allowed, that is slightly higher than the legal limit in most other European countries. Switzerland, on the other hand, permits CBD products with a THC content of 1% or less, that is comparatively higher than the limits set by other countries. Despite the varying legal limits, the use of CBD products is generally accepted in most European countries.