U.S. Markets for Legal Cannabis and E-cigarettes to Triple and Quadruple by 2023

Social Acceptability, Product Variety and Health Benefits Driving Growth

March 01, 2019

WELLESLEY, Mass., March 01, 2019 – While some controversy surrounds the use of e-cigarettes and legal cannabis, there’s no doubt that these markets, especially in the U.S., are not only thriving today, but are expected to grow at a rapid rate over the next four years. Major factors explaining the growth include the increase in awareness about the health benefits of cannabis, wider social acceptability, and a growing variety of cannabis and e-cigarette products, according to a new BCC Research report.

The report “North American E-cigarette and Legal Cannabis Markets” shows the U.S. market for cannabis will almost triple, from $8 billion in 2017 to an estimated $ 25.5 billion by 2023. Similarly, the U.S. e-cigarette market was worth about $6 billion in 2017 and is expected to more than quadruple by 2023, to nearly $27 billion.

Top competitors in the U.S. legal cannabis market include Americann Inc (ACAN)., Axim Biotechnologies, Inc., (AXIM) and Cara Therapeutics, Inc. (CARA).

Top competitors in the U.S. e-cigarette market include Black Note, NJOY, and Roar Vapor.

Report Highlights

  • Regulatory barrier. As of 2016, the FDA requires e-cigarette companies to submit an application for approval for all new products and prevents companies from advertising their products as safer alternatives to traditional cigarettes. This process costs manufacturers approximately between $182,000 to $2 million for e-liquids and between $286,000 to $2.6 million for e-cigarettes.
  • Customer demographics. The fastest-growing age group in the cannabis market’s customer base is baby boomers.
  • Market analysis. Canada’s e-cigarette market is expected to reach $1.4 billion by 2023, with a CAGR of 23.8%. The Canadian market for legal cannabis is expected to quadruple, from $666 million to $2.7 billion.

“The e-cigarette and cannabis markets offer many opportunities for key market players in North America due to the potential benefits of cannabis and the various types of e-cigarettes available. However, an uncertain regulatory framework and the increasing incidence of e-liquid poisoning are some of the factors that may restrict the growth of North American e-cigarette and cannabis markets,” says BCC Research analyst Kunal Somani.

Cannabis and E-Cigarette Product Varieties

Cannabis is consumed in many ways, and companies have created products such as extracts and concentrates, edibles, topicals, flowers, oils and sprays. While the nicotine in e-cigarettes is consumed in only one way, companies have created different types of e-cigarettes, including rechargeable and disposable, and mod styles, including pens, laser pointers, USB memory sticks, Coca-Cola cans and more.

Editors/reporters requesting analyst interviews should contact Eric Surber at press@bccresearch.com.