New York Legal Cannabis Market: Business Opportunities of Cannabis Vape
A recent MJbizdaily report highlights that New York City Council Member Kathy Hochul is advocating for a new cannabis tax policy. This policy is proposed to fine-tune the tax system and construction within New York’s legal cannabis market. It may reduce operational costs for cannabis businesses. Kathy Hochul has proposed in her recently released executive budget the replacement of the potency taxes with a wholesale tax of 9%. This proposal will offer significant tax relief for New York’s legal recreational cannabis market.
Despite three years of legalization, the recreational cannabis market in New York still faces challenges. And the overall market situation is still generally chaotic. The longstanding black market is near saturation, hindering the legal cannabis market’s growth. From a policy standpoint, the government’s implementation of cannabis policies has experienced issues with enforcement intensity, social fairness, and tax matters. To penetrate the New York legal cannabis vape market, cannabis businesses need to choose products that are in line with the overall market trend based on understanding industry policies, market trends, and user preferences. By implying these ways, they may secure a place in the complex commercial competition of the New York legal cannabis market.
Industry Policies Boost Legal Market
The cannabis vape market, as part of the entire cannabis industry, is also influenced by the primary cannabis farming industry. A thriving cannabis farming industry will also stimulate the positive development of the cannabis vape market. According to a recent report from Ganjapreneur’s report, the New York State Senate recently approved a budget inclusive of a $128 million plan to support the state’s cannabis industry. This budget will offer tax exemptions for cannabis farmers who have suffered economic losses due to the slow promotion of the legal cannabis market. This policy execution will invigorate the provision of abundant cannabis products for New York’s legal cannabis market and reduce operational costs for cannabis vape companies as well, promoting growth among local cannabis vape brands.
Lauren Rudnick, director of Rudnick Law Group, commented, “Taxes are one of the largest barriers to a successful transition from the legacy to the legal market and pose the biggest disadvantage for legal operators competing with the illicit market.” Overall, New York’s new policy favors the growth of the local legal cannabis market, which will benefit future local cannabis brands in New York and impose certain limitations on the black market(largely composed of brands from other states). This change implies considerable developmental prospects for local legal cannabis brands in New York.
Furthermore, the negative changes in the nicotine vape market might positively influence the cannabis market in New York. The New York region launched a sales ban on flavored nicotine vapes in 2020, and according to the NYC government Health section, future restrictions on flavored nicotine vapes will expand. This could lead more nicotine vape users to abandon flavored nicotine e-cigarettes and consume more flavored cannabis vape products. It’s worth noting that these nicotine vape users have already gotten used to the way of nicotine vapes. After flowing into the cannabis vape market, their preferences for the form, taste, and consumption habits of cannabis vape products will be greatly influenced by nicotine vapes. This also poses new challenges for businesses of cannabis vape products in the New York cannabis market.
Substantial Growth Potential for Disposable Vape in Cannabis Market
image from Headset
The rate of cannabis usage across the US is around 13.7%, with New York surpassing the national average at 16%. Considering the dense population in New York, the area’s legal cannabis market has enormous potential. Data from Headset indicates that vape products constitute 30% of the market share across ten categories. This percentage is second only to cannabis flowers, making it the second-largest category in the New York cannabis market.
Disposable vapes appeal to Gen Z
The primary age group of cannabis users in New York is between 18-34 years old. As this demographic continues to mature, their economic status will improve, thereby increasing their purchasing power for cannabis products. Artrix had previously analyzed the consumption preferences of the young group Gen Z. It can be seen that vaping is particularly appealing to this group compared to traditional cannabis flowers due to its alignment with their pursuit of individuality and convenience. Consequently, the category share of cannabis vape in New York’s cannabis products is expected to rise further in the future.
In terms of cannabis product form, Headset’s data shows cartridges are the most popular vape products in New York. However, disposable products follow closely behind, accounting for about 35% of the market. Considering the age composition of the main cannabis users in the New York area mentioned earlier, this group of young people is more likely to pay attention to trends and the appearance design of vapes, as well as the portability and discreetness of products. Compared to cartridges, disposable vape products meet future usage needs better. This indirectly verifies that disposable products will have good growth potential in the future cannabis market.
image from Artrix Infobank
“California style” is also popular in New York Cannabis Market
According to this proportion, it is not difficult to see that a disposable product with a suitable capacity is most in line with the market demand in the New York area. In addition, some fashion-conscious young groups are deeply influenced by the cannabis vape trend in the California cannabis market. The previous Micro Bar once set off a box-shaped disposable trend in the California market. Although New York is located on the East Coast, there are still trends in following the California cannabis market.
Artrix’s Cubox is a trendsetter for box cannabis vaporization products. It is even smaller in size and easy to hold in shape. Compared to the common box-shaped vape on both the nicotine and cannabis vape market, its small and mini size makes it easier to hide. If paired with cannabis extracts that have a lighter cannabis taste, it is difficult for people to distinguish whether the user is using a nicotine e-cigarette or a cannabis vape. In addition, New York, as a big city on the East Coast, has a dense population. And many people live in high-rise apartments. Many users do not have a particularly private cannabis vape smoking environment. Concealed vape forms and cannabis products are closer to the needs of this group of users. Especially when these vapes increase sweetness and weaken the cannabis taste.
User’s Needs Showcase a Binary Trend in New York Cannabis Market
Despite the tremendous growth potential of disposable products in New York’s overall cannabis market, user demand for products exhibits a binary trend. On the one hand, young user groups do indeed prefer to use disposable products. As well as the users transitioning from the tightening nicotine e-cigarette market. On the other hand, there are quite a few experienced cannabis users in New York. This group of users is older on average and more accustomed to traditional cannabis-consuming methods, such as pre-rolls or dabbing.
However, New York’s new policy is gradually restricting these users from smoking pre-rolls in public places. For example, park benches. And, ordinary disposable vape do not meet their aesthetic needs. At this time, portable dabbing products like DabGo become the best solution for these users. The popular product from the American West Coast, DabGo, has a unique design and function. It not only makes dabbing portable, meets the needs of experienced cannabis consumers. But has other clear advantages: a high-quality ceramic tank paired with three levels of pressure regulation for great performance. DabGo allows users to adjust the voltages to adapt to the different cannabis concentrates. The sleek body design also enhances the concealment of DabGo, making it easier for users to take a puff at any time.
The diverse user demand necessitates cannabis companies in New York to continuously enrich and update their products. Through diversified product forms, they can meet the vastly different cannabis consumption needs of users.
Artrix’s 3 in 1 Service Supports the Ascent of Small and Medium Enterprises
The beneficial policies will attract many small and medium-sized entrepreneurs to join the cannabis product market. Artrix’s 3 in 1 service has proven successful in customizing for these enterprises in the California cannabis market. In the early stage of rapid growth in New York’s legal cannabis market, how to enhance market demand, improve consumer recognition of the brand, etc., will be the foundation for small and medium-sized cannabis companies to survive.
The product, market, and strategy 3 in 1 service can help these companies quickly seize the market share. Artrix’s service offers not only experience, but also professionalism, high efficiency, and low cost. In addition, Artrix’s service is not a single common product customization service. It emphasizes providing a one-stop service for small and medium-sized enterprises. From product design, and manufacturing, to marketing, strategy response, etc. Providing more opportunities for brand promotion and growth in the New York cannabis legal market.
Contact Artrix and let Artrix’s professional consultants provide robust support for the promotion of cannabis companies in the New York legal cannabis market.
