“Eat, drink, and be merry” is becoming an increasingly common mantra for cannabis consumers.
It’s also a refrain that speaks the evolving demand picture for cannabis in a post-legalization environment, as it becomes clearer what products consumers want to see coming from the sector.
Today’s infographic comes to us from The Green Organic Dutchman, and it dives deeper into the profound investor potential in cannabis retail products, like edibles and concentrates.
The Allure of Retail Products
As the business of cannabis matures, several trends are directing its course. Consumer spending in North America is ballooning overall, but growth largely depends on the product type.
|Trend||↓ 14pp total share
(from 50% to 36%)
|↑ 2pp total share
(from 12% to 14%)
|↑ 13pp total share
(from 23% to 36%)
|↓ 1pp total share
(from 15% to 14%)
Source: Arcview and BDS Analytics
While seasoned consumers prefer smoking cannabis, other consumers are actually drawn to alternative forms that the plant comes in. Proprietary research from New Frontier Data reveals the products that most appeal to potential U.S. cannabis consumers:
- 69% solid edibles
- 54% liquid edibles
- 44% topicals
- 36% joints or blunts
- 32% vaporizers (vapes)
- 29% tinctures
- 21% concentrates
- 19% pipes / water pipes
The rising popularity in retail cannabis-derived products is being directed by consumers – and they’re using products for everything from relaxation to pain management.
Variety is the Spice of Life
Food and beverages, along with wellness products, are proving to be a huge draw.
Food & Beverages
Most people are aware of pot brownies, even if they haven’t tried them. The best known cannabis edibles are baked goods, and these days they’re also found as candy and chocolate.
Cannabis-infused drinks are also growing in popularity, in both alcoholic and non-alcoholic forms. Cannabis-infused water, juice, tea, coffee, and even kombucha are legally making their way onto grocery store shelves.
Of course, before edibles can become fully mainstream, there are a few considerations: stricter regulations for product consistency, not to mention appropriate packaging and labeling to keep them away from children. As an example, Canada will start allowing edibles and other products in October 2019, as they iron out these kinks a year after full legalization.
Health & Wellness
Cannabis has been treasured for its medicinal and therapeutic properties for centuries. In the present, it has re-emerged in an intersection with the wellness industry. In fact, many consumers are already using CBD-infused products in their daily life:
- Relieving anxiety
- Enhancing sleep
- Managing pain
- Personal care
Importantly, retail cannabis products are also helping consumers reduce their dependence on medications, and to kick unhealthy habits.
A Consumer-Driven Future
Consumers are not just eating cannabis up, but they are also drinking, vaping, dabbing — and the list goes on.
For these reasons, investors should keep an eye on the fast-changing multitude of products and trends within the sector, as they provide some of the best opportunities going forward.
In the final part of this series, we’ll dive into the role that the cannabidiol (CBD) compound plays in the cannabis market.