The sale of hashish drinks continues to movement with a specific leaning in the direction of macrodosed drinks. • Weddings

A new report from the cannabis market data analyst, Headset, shows that cannabis beverage sales in North America continue to grow and new trends suggest the sector may be prepared for market share gains. Headset’s March industry report, focusing on cannabis drinks, was released last week and is available online as a free download.

In the report, Headset notes that many analysts in the cannabis industry have expected big profits for the beverage space since the company began collecting and reporting data from the legal marijuana industry in 2015. However, the sales data showed that the bold predictions were unsuccessful.

“Over the past five years, the beverage market share has held approximately 1% of total recreational cannabis sales, with sales in this category growing at about the same rate as the overall market,” wrote Headset in the report’s introduction.

“But today, for the first time in a long time, our headset analysts are bullish on beverages,” the report continues. “Between advances in THC infusion technology and a host of new brands targeting the casual, low-dose consumer, there are many reasons to believe in the growth potential of this category.”

In Canada, beverage sales rose to 1.5% of market sales in little more than a year, while in the US, cannabis beverages accounted for a more modest 1% share. Cannabis beverages actually saw a decline in the US in 2020, but have rebounded to just over 1% of the market this year. Headset notes that some trends in sales data could mean cannabis beverages are poised to gain more market share.

After remaining relatively constant for about two years, the percentage of baskets (cannabis retail stores) that contained a cannabis beverage rose from about 2% in March 2020 to nearly 3% in February 2021. After debuting in Canadian pharmacies In January 2020, baskets of cannabis beverages rose rapidly to around 4.5% in six months, which the metric has been hovering around since June.

“While market share has not increased dramatically, beverages are getting into more and more baskets each month, indicating that more customers than ever are trying THC-infused beverages,” wrote Headset.

The report also shows that cannabis beverages are popular among all population groups, although women tend to spend more on the products than the average consumer. The authors also note that cannabis beverages appear to fall into two general groups – those that offer the maximum allowable dose of THC per unit (usually around 100 mg) and those with potency of 10 mg or less.

In five markets in the west, consumers showed great affinity for products containing 100 mg of THC or more. Overall, these “macro-dosed” drinks account for almost 60% of sales this year. However, in Washington state, cannabis beverages containing 100 mg of THC claim an overwhelming market share (more than 90%), leaving few consumer dollars left for the sale of lower potency alternatives. Or, as Headset points out, a huge opportunity for Washington’s cannabis beverage brands.

California can’t

The Headset report looked at the sale of cannabis beverages in California and noted that market conditions can vary from state to state. The data shows that California consumers lost $ 15.5 million on weed beverages in January 2021, more than six times since legal recreational sales began in January 2018.

Californians have been keen to embrace “sedentary” dosage cannabis beverages with lower THC levels, with options of 12 mg or less making up more than a third of the market. Two of the state’s top three brands have had success with “microdosed” products designed to replace alcohol. At the top is Cann Social Tonics, which had sales of nearly $ 2 million in January 2021 alone.

“There are many people who want to incorporate cannabis into their lives in their spare time without worrying about getting too high,” said Luke Anderson, Cann co-founder, in a recent press release. “Can’t get you to rewrite the ‘bad edible experience’ you had in college while changing your social drinking routine.”

Cann’s popularity and growth in the California market have drawn the attention of larger industry players to the brand. In early March, the company announced a partnership with multi-state operator Green Thumb Industries. The deal will bring the company’s formulations to GTI’s home state of Illinois first, with plans to expand to other markets, including newly legalized New Jersey.

“The cannabis beverage category is about to grow. Consumers are increasingly entering the market looking for alternatives to alcohol with familiar consumption experiences, ”said Ben Kovler, founder and CEO of Green Thumb. “Cann is making the most of this opportunity, meeting consumer needs and adding to our brand portfolio by entering the beverage segment. What’s even better is that cannabis drinks can offer a superior experience, fewer calories, and no hangover. “

Jake Bullock, co-founder of Cann, said the management of GTI, which operates cannabis in 12 US markets, believes in his company’s vision of “offering a superior alternative to alcohol.”

“Social Tonics can create a refreshing, uplifting social buzz without the ill effects of alcohol. We believe cannabis drinks will change the way people drink in this country – imagine drinking a few cans instead of several beers, wine, or cocktails and waking up the next day without a massive headache, ”said Bullock . “We have a much smarter, more delicious selection.”

Will this choice lead to cannabis beverage sales finally meeting long-held expectations? Headset analysts believe the time may have finally come for the sector.

Comments are closed.