In rise of U.S. vape shops, owners eye new marijuana market. When Matt and Jen Osmun vape opened his shop in Bethel, Connecticut, last December, hoping not get a boost from the takeover of the local medical marijuana.
“Sales are going very well, and getting better every month,” said Jen Osmun, who started the business with her husband, a former plumber, after being injured in an accident. Most customers in Grassy Plain Vape and smoke buy electronic cigarettes to help quit snuff, but a growing number are referred by the curators of medical marijuana in the neighborhood – the closest is about five miles away.
The experience of Osmuns’ is becoming more common as the number of Americans vape rises shops and shop owners looking to capitalize not only on trend vaping, but the most widespread, and legal use of marijuana medicinal.
Since 2008, the number of Americans vape stores has grown to about 8500, and the sale of cigarettes and electronic supplies climbed to $ 3.5 billion, according to Wells Fargo Securities analyst Bonnie Herzog. She hopes Us Use of electronic cigarettes and vaporizers to overcome fuels cigarettes in 10 years.
Marijuana is an additional lucrative market. IBISWorld a market research firm, projects sales of cannabis for medical purposes to increase to $ 13.4 billion in 2020 from $ 3.6 billion in 2015, largely due to the demand of an aging population with conditions such as arthritis, Alzheimer’s disease and glaucoma.
GreenWave Advisors, a research firm in the industry, estimated that marijuana sales could reach $ 35 billion by 2020 if all 50 states legalize marijuana for medical and recreational uses.
Use of medical marijuana is allowed in 23 states and the District of Columbia for a number of conditions, including cancer, multiple sclerosis, pain and HIV / AIDS, according to the Marijuana Policy Project. 15 other states allow patients – often with severe seizure disorders – use a few strains of cannabis for treatment. Recreational use is legal in Colorado, Washington, Oregon and Alaska.
In many vape shops, new customers are typically nonsmokers elderly suffering from serious illnesses, according to vape store owners, customers and industry experts.
Patients and groups of medical marijuana say they prefer the device vaping instead of smoking marijuana because they believe that there are minor risks. Some states, including New York and Minnesota prohibit patients from smoking cannabis. In a steaming device, cannabis leaves or concentrate is heated to a temperature which is less than that required for combustion.
Vaping devices, which can be as small as a pen, also provide medical marijuana users more privacy, as the steam released by the heating device is almost odorless.
“Vaporized cannabis is a very significant trend in both the medical and adult use,” said Christie Lunsford, a consulting firm based in Colorado, which focuses on issues related to cannabis. “It is consistent, is almost instantaneous, and is suitable for a wide variety of consumers.”
A FLOCK NO SMOKING
Headquartered in Tulsa Oklahoma, Palm Beach vapors has opened 14 stores and is in the process of starting eight said Chip Paul, CEO and co-owner. He told Reuters that 90 percent of franchisees finally hope to profit from sales related to marijuana.
Individual stores pay a franchise fee $ 25,000 and $ 50,000 for the initial half, while Palm Beach vapors helps train workers and set up shop. Franchisees are grossing average about $ 20,000 a month, Paul said.
“We believe the cannabis market will mimic and mirror the market for snuff,” he said. “We are going to see this (vapor) as a safer alternative.”
Patients need the approval of a doctor for marijuana, which is typically available in clinics approved by the state, private producers, and – in some cases – their own plants if they can not afford the cannabis, which is not covered by the Most insurance plans.
At the same time, vaping devices have gone mainstream as the industry pushes as an alternative to snuff. Marijuana dispensaries in some states also sell electronic devices.
But vape stores, with its greater selection of devices, have seen an uptick in sales, especially to consumers who do not want to buy snuff shops or head shops, catering more to recreational use.
“We try to guide our patients to someone who will explain the different models and find them that is right for them,” said JoAnne Leppanen, executive director of the Coalition of Rhode Island Patient Advocacy. “I do not necessarily want to go oriented to people who want a shirt stained place.”
The process can be daunting for someone who is seriously ill and struggles to keep even a device to cause tremors, arthritis or other medical conditions.
Leppanen said medical marijuana patients “do not want to be associated with recreational use.” They also want their privacy. Some patients even not “want their cars to be seen in a clinic parking lot,” he said.
Most investments in the future of legal marijuana have focused on growth, brand and technology companies, especially those already producing medical marijuana. A subsidiary of Scotts Miracle-Gro Co., for example, bought General Hydroponics Inc., which is popular indoor marijuana growers.
A small number of investment funds and private coverage have invested in companies that produce and sell cannabis. Billionaire Peter Thiel’s Founders Fund, for example, has invested in Privateer Holdings, which has raised $ 82 million. The portfolio includes companies such as Tilray Privateer – a company of medicinal cannabis in Canada – which has applied for a license in New York.
Privateer Leafly has also invested in a technology company that helps consumers find information on cannabis, doctors and shops.
By contrast, the shops are still primarily vape operations mom and dad. VaporFi, one of the biggest franchises in two years has grown to 52 stores.
Kevin opened Cintorino vaping high to sell equipment and snacks in Providence, Rhode Island, where medical marijuana users can meet to vape. He came up with the business plan during a college class.
“Why not open a place where we could get the whole community of patients together?” he said.
John Avey and his father, Dillard, opened in May, a franchise of Palm Beach vapors in rural areas of Council Bluffs, Iowa, to supplement the income of their cement business season. Sales have been so good that already are planning more stores.
“It’s like the icing on the cake,” said John Avey, 25, on sales of equipment for cannabis.