Industry Insight By Crystal Lan|02 May 2024

Invest Once, Benefit for Long-term: Exploring the Possibility of Topop Pod System

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In recent years, the legalization and acceptance of medical and recreational cannabis have been increasing globally. With the continuous expansion and growth of the global cannabis industry, the cannabis vape pod market has seen significant growth. This growth is mainly reflected in the continuous expansion of the total market volume and the increasing number of vape brands. The competition within the cannabis vape market is intensifying, with new products and brands emerging constantly.


In this market, some traditional cannabis companies used to only focus on flowers and pre-roll cannabis products. Nowadays, they have also begun to enter the cannabis vape field, launching their own vape products. At the same time, some recently emerging vape brands have also begun to stand out. They are attracting consumers through innovative product design and marketing strategies. Overall, the growth and intensified competition in the cannabis vape market provide more choices for cannabis consumers. And they are bringing more opportunities and challenges to relevant enterprises.


1. The Cannabis Market Has A Broad Prospect




The pod system is a high-threshold category in the cannabis vaporizers market. It requires strong financial, high cannabis extract quality, marketing, and strong channel sales. However, if operated properly, the cannabis pod system will bring substantial long-term benefits and brand benefits. In recent years, the pod vape market has grown robustly. Many cannabis brands, in addition to top pod system manufacturers like Stiiizy, Pax, and Plug&play, have launched Pod system products. It can be foreseen that the sales prospects of the pod system are broad.


According to Headset’s analysis data on the North American market, the pod system’s share in the cannabis market is still lower than traditional cannabis flower or pre-rolls. This means that the pod system still has room for growth in the future cannabis market. Moreover, the cannabis pod system overall presents a good growth trend, and the growth rate is faster than that of disposable vape.


The popular trend of the cannabis vaporization market has been very similar to the development trend of the nicotine vaporization market. It can be boldly inferred that the future cannabis vaporization market also produces a trend similar to the nicotine market’s move away from disposable vape. Then pod products are very likely to become the next popular trend product to replace it.




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2. Cannabis Pod System: The Potential Stock 




The cannabis vape on the current market can be simply classified into three different forms: 510 cartridges, disposable vape, and cannabis pod vape. Disposable vape is convenient and easy to use, with a low price per unit. But it is not environmentally friendly, and the taste and variety are single. If want to try a new flavor, consumers must buy a new vape with a battery.


Compared to disposable vapes, 510 cartridges, and cannabis pod systems are more cost-effective and environment-friendly. By buying different cartridges and pods, users can use one battery to enjoy different cannabis extracts. However, 510 cartridge products were launched early and developed steadily. The cartridges’ loading and unloading methods are not convenient enough. Also, the product appearance is relatively single and not cool enough due to product form limitations. The pod system combines the advantages of disposable vape and 510 cartridge, with lower prices, convenience, and more portability, becoming an increasingly popular cannabis vape product.


Since STIIIZY launched its first cannabis pod product in 2018, the pod system has gradually become popular. From the cannabis market in California, and across multiple recreational cannabis legal states in the United States. The pod system category does not account for a large share of the sales volume in the overall cannabis vaporization market. However, it has been showing a growth trend in recent years and even exceeds disposable vapes in certain periods. At the enterprise level, in addition to STIIIZY, Pax, Plug&play, and other successful companies with pod system products. Some large cannabis brands have also launched their brand’s pod system products in recent years. This shows that pod system products still have room for development in the future cannabis market and are an indispensable category in the future cannabis vape market.


3. The Pod System Brings Diversified Benefits




The pod system is a unique category in the cannabis vaporization industry. It requires a high entry threshold and high requirements for the capital turnover and quality of cannabis extracts of cannabis brands. Moreover, after introducing cannabis pod system products, cannabis businesses also need to carry out high-standard operations in various aspects. Such as product marketing and channel sales promotion. However, if a cannabis business can launch a pod system product well. It will continuously bring long-term profit and brand benefits to the cannabis business. In the long run, cannabis enterprises can gather a certain number of loyal users through pod systems. The future development prospects of the enterprise will be quite optimistic. The loyal users brought by the pod system will bring continuous profit and brand benefits through continuous repurchasing of pod consumable items.




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3.1 The Cannabis Pod’s Long-term Economic Value



Overall, the pod has a higher product premium than the 510 cartridge. Even if the initial investment is large when setting up the product line. It can bring longer-term and more stable income through continuous pod repurchases. The market’s overall situation of the pod system is also relatively stable. In the current pod system category market, the market share is mainly monopolized by STIIIZY Pod, Vfire Pod, and Dart Pod. And maybe other low-priced imitation cannabis pod vape. In the main cannabis legal states in the United States, the pod vape market is firmly occupied by these brands, and consumers can hardly buy pod products other than these brands.


This means that consumers can only access homogenized pod vape. Cannabis consumers need new pod system products to provide differentiated products. According to the data from Artrix Infobank, the pod category market size in four states in the United States (including California and Nevada) is approximately 30 to 35 million. STIIIZY (30 million/year), CLAW (more than 5 million/year), PLUG&PLAY (2.4 million/year), Trulieve (more than 6.42 million/year). The stable market demand means the pod system will bring continuous long-term economic benefits to the brand.


3.2 User Loyalty Increases Quickly



With the help of the cannabis pod system, the cannabis business can gain more in-depth, more loyal users. The first benefit that continuous purchases bring is indeed economic value advantages. However, the cannabis business needs to analyze the repurchase action deeply. Cannabis brands then can find that when users get used to buying from the same brand, it gradually converts these users into word-of-mouth users. It is beneficial for the brand to obtain more deeply loyal users and can attract higher-end users.


The cannabis pod system is also the product form that can best guarantee user loyalty and has a high user retention value. If a user buys a set of pod systems, after the pod is used up, because there is still a battery in hand, there is a high probability that they will continue to purchase the same pod. And because the battery is expensive, users will not throw it away after using it once.


In contrast, disposable vapes will be thrown away after use, 510 cartridges have realized industry compatibility, and the cost for users to switch to other brands is almost nonexistent. The pod system has only realized partial compatibility between certain specific brands, setting a certain threshold for users to change brands. Under the premise that the quality of the battery and cannabis extracts can be guaranteed, a pod system is the best way to improve the user retention rate.


3.3 Increases Brand Value by Cannabis Pod System



Cannabis pod system products help deepen brand image and brand influence. And they also help establish long-term interaction and contact between the cannabis business and customers. In the cannabis market, pod vape products are still in the rising period. The future share of pod products will likely continue to rise. Pod products often look more fashionable than 510 cartridges. From an environmentally friendly perspective, they are more environmentally friendly than disposable vapes. From a consumer perspective, the long-term cost of a pod vape is less than a disposable vape. With a pod vape, users can swap cannabis extracts or flavors at any time.


From an enterprise perspective, the pod products will bring high value-added effects to the brand. Referring to the development mode of a pod in the nicotine market, this product mainly has two development directions. One is to add more functions besides vaping. Some of the new products of top brands have Bluetooth functions, increased indication functions, usage monitor functions, and other auxiliary functions. Another direction is category integration, that is, to launch cannabis pod products with price advantages. This is the track for small companies with relatively weak sales channels, brand power, and user loyalty.


4. Choose the Right Product




If the MSO cannabis business wants to enter the pod-prevalent state, the right product can attract consumers with a lower price and stable quality in the early stage. Topop is a pod system product that can be easily introduced without high investment. As a pod product, its vape device cost is similar to the investment cost of disposable products.


In addition to helping MSO cannabis businesses save the cost of new market expansion, cannabis pod vape also expands their product category and increases their profit space. At the same time, Artrix is providing vape hardware, business consulting, and marketing support for cannabis businesses. Cannabis businesses can get these comprehensive services for free (after ordering Artrix products). Eliminate the extra concerns of cannabis businesses about developing the pod system product category. It solves the sales bottlenecks encountered and keeps up with market trends. And effectively compete with other competitors for cannabis vape market share.




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Topop: Disposable Vape Cost and Pod Vape Advantages



Topop combines the convenience and price advantages of disposable vape with the reusability of the Pod system. It provides users with an affordable and high-quality vaping experience. The price of Topop Pod is comparable to most disposable vape products, providing users with a cost-effective choice. This means that users can enjoy the advantages of the pod system without adding too much cost. It allows users to save vaping costs while conveniently changing pods for a better vaping experience.


Topop uses high-quality food-grade materials and ceramic atomization cores to ensure consistent vaping taste. Plus the design is lightweight and portable, convenient for users to use anytime, anywhere. It can be easily put into a pocket or handbag, without imposing any additional burden on cannabis users. And its use is very simple, just insert the pod into the battery, and then consumers can start vaping. No need for any complicated settings or operations, even a novice can easily get started. With its low investment cost, pod system advantages, and high-quality vaping experience, Topop has become the best cost-effective product solution for enterprises. Whether for individual users or enterprise customers, Topop is a wise choice. Contact Artrix and enjoy the convenience and pleasure brought by Topop.

Author: Crystal Lan

Crystal Lan, an Artrix content contributor, works with a keen interest in delving into the cultural and business aspects of the cannabis vaping industry. She closely follows industry news and trends, providing a compelling mix of research and practical insights to illuminate and engage.