Pods, Mods, Carts, and More

Arizona’s Vape Market Heats Up

Vaping technology has come a long way since Hon Lik developed the first commercially successful electronic cigarette in 2003. Vapers can customize their devices and purchase a huge variety of cartridges, from pre-filled and flavored to refillable or even artificially intelligent pods that report user data to an app. As Arizona residents develop a taste for vapes, manufacturers will have to find ways to keep up.

It’s a sector that’s growing quickly. Dataanalytics firm Headset reported a 20% increase in recreational vapor pen sales from 2019 to 2020 in California, Colorado, Nevada, Oregon, and Washington state. Credence Engineering President Jim Ellis said he has expanded his inventory to meet the demand from Arizonans and the larger cannabis marketplace. “Our dispensing pump is the most accurate in the industry and our filling systems have the shortest path from vessel-to-cart.” His equipment is also set up to switch rapidly between different oils. “Changeover from one lot to the next is the quickest in the industry at under three minutes,” Ellis said.

The global cannabis vaporizer market is expected to expand by 3.5 times its current size by 2031, according to Fact Market Reports. Brands will need to find high-volume processors who can keep up with large orders. Ellis told Cannabis & Tech Today Credence already offers higher volume solutions for its most assertive clients. “We are offering several throughput levels, from 1,000 per hour up to 18,000 per hour.”

Vape users often prefer the discretion of vaping, which produces less “smoke” and odor than other forms of combustion. With Arizona’s social scene picking up again since the pandemic, it’s a good atmosphere for vapes. Data analytics company Zenreach found foot traffic to Arizona bars and nightclubs has increased 33% since January 2021.

It’s also a popular method of consumption among college students. A 2019 study from Monitoring the Future found 14% of college students had vaped cannabis in the last 30 days, along with 17% of their non-college-attending peers. The state is home to 48 colleges and universities and nearly 700,000 students — a prime demographic for vape sales.

As retailers work to meet the demand, it will be brand variety that gives dispensary owners an edge. Lilach Mazor Power, founder and managing director of the Giving Tree dispensary told Phoenix New Times the shop is working to expand its retail footprint. “Our way to expand and grow is through brands,” Power said.

There are 123 active dispensaries in Arizona, according to the Cannabiz Media license database. With so many retailers looking for products, brands need ample inventory and established manufacturing relationships to outsupply their competition. Ellis also advises brands to look for partners with exceptional customer service. “At Credence Engineering we are continually developing new features, so we give free upgrades to Credence owners. We provide loaner machines in the event that a customer runs into problems and needs the seamless throughput.” In Arizona’s competitive climate, reliable partners and strong contingency plans could be the difference between profit or loss. ❖

The Credence Engineering Team