Chapter 1:
Cannabis Market Trends
Cannabis Shopper Insights
Once a cannabis consumer purchases from a brand, they are likely to revisit that brand. Establishing brand loyalty early on is crucial in the saturated dispensary marketplace.
In-store merchandising, and educational materials are highly motivational for Gen Z/ Millennials and Gen X shoppers. Similar cannabis market trends arise across the in-store category: generationally, Boomers can be swayed to shop in-store by value, Gen X by the immediacy of not having to wait or pay for delivery.
More educated consumers are analyzing the product from a holistic view; shoppers are looking for potency and innovation when deciding on a product. This means that shoppers are evaluating more than just the qualities and effects of the product itself (like you would in the case of a medical substance), but rather the package as a whole – considering the aroma, aesthetic, etc.
Cannabis packaging research is important when understanding various sensory responses to product offerings. The shopper’s knowledge and sophistication point toward greater innovation from a retail marketing perspective.
Social Gatherings & Cannabis Products
A significant cannabis market trend is the easing of pandemic restrictions which opened the doors to cannabis consumption at social gatherings. This represents a major purchase occasion for Gen-Z and Millennial customers, who on average purchase $122 per purchase occasion. To attract these high-value customers, a variety of innovative and portable products, such as THC beverages, and CBD coffee should be offered.
Cannabis consumption lounges may open the doors to new marketing segments. Cannabis market trends indicate that they may become as popular as bars and breweries, leading to new marketing strategies and product diversification.
Alcohol and cannabis are also complementary goods in social settings, which could drive sales and reveal new marketing opportunities. Consumption lounges represent a future driver along the path to purchase and exciting opportunities within the cannabis space.
Quality Information
Consumers insist that labels clearly prove the legitimacy and safety of their cannabis products (similar to an FDA-approved label for nutrition content). This is especially important when attracting new customers that are interested in trying cannabis, as it can let them know what strain is best for their needs.
Providing a detailed breakdown of the terpenes and types of cannabis products allow customers to make educated decisions. More accurate labels will allow customers to choose the right strain and increase brand loyalty.
