Cannabis Vape Sales Overtake Flower in California

For the first time in California’s regulated cannabis market, cannabis vape sales overtake flower in California. This shift was not driven by a temporary pricing anomaly or a promotional spike. It reflects a structural change in how cannabis is consumed, particularly by younger and more convenience-oriented consumers.

In 2025 alone, California consumers spent more than $1.2 billion on vape products, pushing the category ahead of traditional flower. What is remarkable is not just the growth, but that it occurred less than five years after "vapegate" nearly collapsed the category altogether.

The recovery of cannabis vapes tells a broader story about consumer behavior, manufacturing infrastructure, and where future cannabis M&A and cannabis real estate value are increasingly concentrating.

A Generational Shift Away From Combustion

The preference for vaping over smoking flower has become increasingly clear, especially among younger consumers and professionals who prioritize discretion and consistency.

The reasons are practical rather than ideological:

• Improved flavor profiles driven by terpene preservation

• More predictable effects in regulated and tested products

• Greater strain and format variety without combustion

• Convenience and discretion compared to burning flower

• Efficiency, with a single one-gram cartridge often delivering hundreds of puffs depending on draw size

From a consumer standpoint, a vape cartridge represents concentrated flower delivered efficiently, without the friction of rolling, grinding, or lingering odor. As legal markets mature, those advantages compound.

What Is Actually Inside the Cartridge

The durability of the vape category is tied directly to improvements in extraction and processing. Not all vapes are the same, and consumers increasingly understand the difference.

Distillate vapes remain the most common and affordable option. These products use extracted cannabis oil refined into a consistent base and often reintroduced with terpenes. Distillate dominates on price, consistency, and scalability.

Live resin vapes, produced using hydrocarbon extraction under California’s Type 7 manufacturing licenses, use fresh frozen flower to preserve volatile terpenes.

These products deliver stronger flavor and more strain-specific effects, supporting premium pricing.

Live rosin vapes, produced by washing fresh frozen flower into kief and then heat-pressing it without solvents, sit at the top of the quality spectrum. While more operationally intensive, live rosin reflects the category’s maturation and consumer willingness to pay for solventless formats.

The key takeaway is that vape growth is not just volume-driven. It is segmented, and that segmentation supports long-term resilience.

Cannabis Vape Sales Overtake Flower in California and Continue Growing

According to California Department of Cannabis Control data, vape cartridges generated approximately $1.27 billion in sales in 2025. For the first time, cannabis vape sales overtake flower in California by total category revenue. Unit volume and price-per-unit trends confirm this was not a one-year anomaly.

This mirrors broader national momentum. As outlined in Pac Garden’s analysis of record cannabis sales nationwide, demand is consolidating around categories that combine efficiency, branding potential, and scalable manufacturing. Those dynamics favor vapes over raw flower.

The Comeback Story Five Years After Vapegate

The resilience of the vape category is especially notable given its recent history.

In 2019 and 2020, vaping faced existential scrutiny following the outbreak of EVALI-related illnesses. At the time, many predicted long-term damage to the category. Instead, subsequent research suggests consumers learned to distinguish regulated cannabis products from illicit ones.

A National Institutes of Health indexed study examining vaping behavior before, during, and after the outbreak found that regulated markets recovered as testing standards, transparency, and enforcement improved. Rather than disappearing, the vape category professionalized, and the data now reflects that shift.

Manufacturing Is Where the Value Is Concentrating

As vapes gain share, manufacturing and extraction facilities are becoming strategic assets rather than simple operational back ends.

Facilities capable of continuous extraction, cartridge filling, post-processing, and distribution, particularly those with proper zoning and licensing, are increasingly central to cannabis M&A conversations.

A clear example is this Santa Cruz industrial manufacturing and distribution facility, where operators can legally produce extracts and vape products at scale in a compliant environment. Properties like this sit at the intersection of cannabis real estate for sale and category-driven demand growth.

As flower margins compress, infrastructure that supports higher-value formats becomes harder to replace and easier to underwrite.

Implications for Cannabis M&A Under Schedule III

As Pac Garden has explored previously, Schedule III is already reshaping cannabis M&A by improving capital access, underwriting assumptions, and deal feasibility.

Durable categories like vapes benefit disproportionately from these changes:

• More predictable demand

• Stronger brand leverage

• Manufacturing efficiency

• Better margin profiles relative to flower

For buyers, this shifts diligence away from storefront count alone and toward licenses, extraction capability, and facilities. For sellers, it reframes value around operational depth rather than retail footprint alone.

Why Vapes Look Structurally Durable

Vapes did not simply outperform flower for a single year. They survived regulatory scrutiny, public health backlash, and consumer skepticism.

Instead, the category adapted.

For investors, operators, and property owners, the message is increasingly clear. The most durable cannabis categories align with how consumers actually live, discreetly, efficiently, and on their own terms.

As capital becomes more selective, categories supported by infrastructure, compliance, and repeatable demand are the ones that continue to attract attention and transactions.

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FAQ

Q: Why did cannabis vape sales overtake flower in California?

A: Cannabis vape sales overtook flower in California due to shifting consumer preferences toward convenience, discretion, consistency, and value. Improved extraction technology, better flavor preservation, and scalable manufacturing also contributed to sustained growth.

Q: Are cannabis vapes a durable category or a short-term trend?

A: Vapes appear structurally durable rather than cyclical. The category recovered after vapegate, continues to grow across price tiers, and aligns with long-term consumer behavior rather than novelty demand.

Q: What types of vape products are driving growth?

A: Distillate vapes drive volume, while live resin and live rosin vapes support premium pricing. This segmentation allows the category to serve both value-oriented and quality-focused consumers.

Q: How does vape growth affect cannabis M&A?

A: Vape growth shifts cannabis M&A focus toward extraction licenses, manufacturing capability, and compliant facilities. Buyers increasingly value infrastructure that supports scalable production rather than retail footprint alone.

Q: What does this mean for cannabis real estate?

A: Manufacturing and extraction properties are becoming more valuable as vapes gain market share. Facilities with proper zoning, licensing, and buildout directly influence valuation in cannabis real estate transactions.