The Vaping Crisis in the United States and its effects on the cannabis market

The growing number of cases of respiratory illness linked to vaping products has triggered a health crisis in the United States. Some states have temporarily banned the sale of these products, and Trump has even suggested a federal ban. These measures have a negative impact on the legal cannabis industry.

The Vaping Crisis

According to the Center for Disease Control and Prevention In the US, spray products are implicated in around 1,888 cases of respiratory illness in 49 states, and 37 deaths in 24 states. According to the agency's director, However, these cases are just «the tip of the iceberg». The products involved are mainly cannabis products from the black market and containing hazardous additives.

In response, the governors of some states have decided to ban these products via emergency measures. As a result, flavored e-liquids (whether containing nicotine or cannabis) are now banned from sale. in Michigan, at Rhodes Island, in New York State, Washington State, in Montana and in Oregon. In Oregon, however, the ban does not apply to full-spectrum cannabis extracts containing only terpenes.

Massachusetts has indiscriminately banned all spray products. However, a judge recently authorized flower vaporization for medical cannabis patients. In several states, these bans are being challenged in court by consumers and manufacturers. Bans in Montana and New York have been temporarily suspended.

Impact on US markets

In legal cannabis states, these bans concern vaporization products containing CBD and THC. They therefore directly affect the legal cannabis industry. Indeed, as can be seen from this graph produced by analysts at Headset and published by Marijuana Business Daily, the share of vaping sales in the legal cannabis market has been falling since the first reported death.

In these states, the market share of edibles increased almost constantly between August 23 (the date of the first reported death) and October 6. So it seems that consumers are turning to other products. At the same time, Headset's analyses show a downward trend in the share of public companies whose business is focused on vaping. That said, the figures are not alarming.

On their side, manufacturers protest on the fact that these bans target the legal industry and will only reinforce the real culprit, which is the black market. They suggest legalizing and regulating cannabis to prevent further intoxication.