Cannabis 2.0 is dominated by vapes and gummies

While vape sales still dominate in the Cannabis 2.0 category in Canada, the gums are poised to eat up more market share as manufacturing picks up on demand. That comes from the latest data from weed-testing company Headset, which shows that vaporizers accounted for two-thirds of 2.0 product sales and 15.96 percent of total sales in July. Cannabis 2.0 products such as beverages, concentrates, topical products and vaporizer pens have been available for the regulated market in Canada since the end of December. Based on data from more mature US markets, Headset predicts that this category will eventually account for 40 percent of total weed sales. Referring to state rubber sales, Headset identifies a void in the Canadian market. A chart showing chocolate and gummy bears market share over time across the states shows chocolate with the initial lead, followed by possible dominance of gummy bear sales. A second graph shows that chocolate infusions have dominated the edible market in Canada, with an average market share of 65 percent over the past seven months - a share that the Headset did not match the initial 36 percent chocolate share of the US edible market in 2015 is dissimilar. The main reason for the initial discrepancy, according to the data firm, is that there are many more segments in the edible market in the US - 11 in the states compared to just six in Canada. Headset also points out that only two of the 12 edible brands currently in operation in Canada make gums. "To put this in perspective, there are 187 brands in the US that make chewing gum," the data report said. "All of this data taken together suggests that gums in Canada are poised to see an increase in sales share within the edible category and that there is an opportunity for new brands to break into the space." Although markets tend to move in predictable directions, the segments vary significantly from region to region. In Alberta, the flower market share declined 15.8 percent from January to May 2020, while vapes reached a market share of 15.9 percent in May. Headset numbers also show that B.C. has the strongest preference for flowers, which hold an 81 percent market share in the province. As the pandemic poses new challenges for an industry that is still breaking out of the gates, the legal Canadian cannabis market continues to grow. The introduction of new product categories, according to Headset, will significantly change the growth path of the market and the product landscape. "By using developed US markets such as \[Colorado and Washington\] as proxy for the future makeup of the Canadian market, one can expect rapid growth in sales of Cannabis 2.0 products and a more even distribution of category sales between Cannabis 1.0 and 2.0 products "says the report. "Within the Cannabis 2.0 categories, it seems likely that steam sticks and edibles will lead the growth spurt, and within edibles we expect a higher share of sales from the rubber segment, which has become a dominant segment in US markets."