Canopy Founders Talk Growth and Portable Humidifier Launch
Since 2020, Canopy has been trying to make humidifiers cool.
Now, the beauty-tech company, which has reached $40 million in revenue since inception, according to the brand, is taking it a step further with its latest and most requested launch: a portable humidifier, $100, which is available on the Canopy website Wednesday.
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According to Canopy cofounder and head of product Lucas Lappe, humidifiers have proven to be a hot category.
“When you look at Google Trends, the search volume is higher than air purifier[s],” he said. “It’s a very heated category as well. People hate maintaining humidifiers.”
The Canopy team has worked to address key pain points, like mold growth and unaesthetic packaging, through its design. For example, the Canopy humidifier, $150, can be cleaned in the dishwasher, includes a replaceable filter to prevent mold and is designed to not only look nice on a bedside table but to be used regularly over time.
“It’s no longer this disposable product,” said Canopy cofounder and president Justin Seidenfeld. “That’s one interesting change in behavior with regards to humidifiers that most people may not think about, but it’s something that will tell the story around why this is a more sustainable evergreen approach to the category.”
Additionally, the humidifiers also feature aroma pucks, which users can drop essential oils on to diffuse a particular scent.
The portable version has been the most requested product by Canopy consumers.
“We wanted to expand this out into where people are traveling and where people spend the rest of their day which is at work or in front of their computers,” Lappe said.
According to the team, humidifiers are often a seasonal product that a user might throw away after a few months. Canopy is taking a new approach — rather than focusing on benefits for cold and flu season, it is positioned as a beauty and baby care brand that should be used all year around.
“What we’ve done at Canopy is tried to move the conversation away from, ‘You only need them when you’re sick or when your kid is sick’ to think about them as conditioning for your air that you should be doing consistently,” Lappe said (hence the version for travel).
With this mission in mind, beauty positioning has proven especially successful for the brand, which is available on Sephora.com, Violet Grey, Bluemercury and Nordstrom.
“We went head on into beauty because there was an existing trend especially in Korea, but also in the U.S., of some beauty pros using a humidifier as a beauty hack and using them year round,” said Lappe.
Beauty and wellness benefits are thought to include more hydrated skin and improved sleep. To further stake its claim in the category, Canopy has partnered with several beauty brands like By/Rosie Jane, Laneige and The Skinny Confidential, increasing brand exposure. In addition, the brand recently launched a filtered shower head, $150, entering a crowded market full of scalp and hair care brands with their own versions.
Lappe said the brand’s core customer is a Sephora shopper.
Seidenfeld added: “[It’s] very heavily skewed female over male, aged 20 to 45.”
Parents are a core customer, too, and the brand has launched a nursery humidifier, $150.
Canopy has sold more than 175,000 devices, underscoring wellness’ move into the home. Consumers have become increasingly comfortable, particularly post-pandemic, implementing technologies at home that could enhance their day-to-day health.
As the brand’s products require regular filter replacements, the subscription model has been key across channels, including the brand’s website, Sephora.com and Amazon. Subscription revenue grew 50 percent year-over-year in 2023. In addition, the model accounts for 40 percent of direct revenue and more than 80 percent of new customers opt in when making a purchase. Lappe attributes the model’s success to “surprise and delight.”
“It’s not this one transaction where we get a customer to buy in, it’s really around the idea that we need to keep them loyal,” he said. “That’s where our partnerships come into play with subscribers. They’re getting gifts with purchases.”
Canopy plans to develop even further in the humidifier space, Lappe said, with plans for retail and product expansion.
“[We’re] continuing the development of the humidifier category,” he said. “There’s a lot on the way there for specific customer bases, when we think about juvenile especially and then continuing in the bathroom.”