U.S. Vapor Sales Outlook: Growth Concentrates in MI & CA, New States Rising Fast
Over the past three months(from July to September 2025), overall cannabis vapor sales in the United States continued to climb. The biggest story in the data is the significant divide between states:
Michigan (MI) and California (CA) jointly contributed over 50% of total national growth, cementing their roles as dominant drivers of demand.
New York (NY) and Ohio (OH) emerged as the fastest-growing markets, marking them as key regions to watch in the upcoming year.
This divergence signals a reshaping of regional consumption behaviors — and new opportunities for brands ready to adapt quickly.
Market Insights: Where Growth Is Coming From
1. Mature Markets: MI & CA Continue to Lead
Two states stand out as stable, high-volume engines of the U.S. vapor market.
Michigan (MI): Price-Driven Volume Expansion
MI’s rapid growth is fueled by ultra-competitive pricing, with retail prices in some areas even dropping below wholesale price levels in other states. This has positioned MI as a critical battleground for brands focused on volume-based strategies.
California (CA): High Consumption Backed by Strong Economy
CA maintains high sales supported by a mature consumer ecosystem and strong buying power. While growth remains steady, competition is intense and profit margins are under pressure.
Key takeaway:
Mature markets deliver volume — but brands must manage tightening margins due to pricing pressure and heavy competition.
2. Emerging Markets: NY, OH, MO Show Explosive Potential
Several states with relatively smaller historical market bases are now seeing rapid expansion.
New York (NY): Fastest Growth Nationwide
NY recorded a 76.9% year-over-year increase, the highest in the country. Easing regulations, early-stage consumer education, and a still-forming retail landscape have created a favorable window for new entrants.
Ohio (OH) & Missouri (MO): Early-Stage Expansion
These markets benefit from flexible regulatory environments and newly developing distribution channels, making them attractive targets for brands willing to invest early.
Key takeaway:
Emerging markets offer first-mover advantages, with strong upside potential for brands that act now.
3. Declining Markets: CO & NV Face Downward Pressure
Not all states are moving upward. Some previously strong markets are now showing signs of stagnation or decline.
Colorado (CO): Slight Downtrend
CO sales slipped 3.13%, reflecting market saturation and competitive pricing challenges.
Nevada (NV): Sharpest Drop Among Mature States
NV saw a 6.67% decline, influenced by a rising black market presence and ongoing price wars.
Key takeaway:
These markets require cautious investment strategies and close monitoring of consumer shifts.
Strategic Solutions: How Brands Can Win Across Diverse States
In response to these shifting dynamics, tailored strategies are essential for achieving strong ROI. Our product offerings have been optimized to match the varying needs of different state environments:
Value Line – For Price-Sensitive Markets (e.g., MI)
Designed to compete in markets where affordability drives volume. This line maximizes value without compromising reliability.
Premium Line – For High-End, Mature Markets (e.g., CA, NY)
Crafted for consumers seeking advanced performance, refined design, and elevated experience.
Customized Solutions – Regional Differentiation & Branding
We support fully customized product strategies, including:
State-specific flavor portfolios
Regional compliance adaptations
Tailored packaging and branding options
Partnering with us enables:
Faster state-level product fit
Reduced trial-and-error cost
Higher ROI across diverse market types
For a deeper dive into state-by-state performance, download our complete U.S. Vapor Sales Trend Report.
Simply contact us or send the keyword “State Analysis” to receive the full report instantly.
