Brightfield Group Archives - Green Market Report

Kaitlin DomangueJune 8, 2021
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The cannabis industry’s proof was in 2020’s revenue, but Brightfield’s newest report shows consumer behavior to match exactly what the cannabis industry already knew: people consumed more cannabis during the pandemic than they were before. 

Gen Z makes up a large part of new consumers

A clear factor is stress and anxiety, and the Brightfield report confirms that. New recreational cannabis consumers made up 6% of all consumers in 2020, with 22% being Gen Z. If you thought Generation Z wasn’t old enough to consume cannabis, so did we (kidding), but many of them are now 21 which means legal access to cannabis if they live somewhere where it’s legal. 

Consumers seeking relaxation, sleep, and emotional relief from cannabis 

New recreational customers saw the heaviest consumption, specifically in Q4 2020, with 22% of new consumers reporting they utilized cannabis multiple times a day. This declined a little bit in Q1 2021, but nonetheless, new cannabis consumers are entering the market at a faster rate than pre-pandemic. The top three desired cannabis product effects are relaxation, sleep, and emotional relief. Over half, 54%, of new recreational consumers reported utilizing cannabis for anxiety, while a whopping 74% of consumers sought cannabis for relaxation. 

Women are newly consuming cannabis in droves

Also, 59% of new consumers are women, further diversifying the cannabis marketplace. Female consumers made up 51% of cannabis consumers in Q1 2021. Women consumers steadily rose in 2020, and they tend to be younger and heavier consumers than men, with 21% of female consumers reporting daily consumption. The Brightfield Report shows women and men approach cannabis consumption differently, with women focusing more on the effects of cannabis and how it benefits their mental and physical health. 

Women use more product types than men do, especially gummies (48% of female consumers utilize gummies, as opposed to 34% of men), but women select specific times of consumption. The report says 80% of women consume cannabis right before going to bed, 59% of women say before taking care of home duties, and 50% save cannabis consumption for date night with their partner. This gender balance varies by state. In Michigan, 59% of cannabis consumers are women. In California, the number goes down to 43%. 

How brands can take advantage of the new demographics

All of this means good news for cannabis businesses. The key is approaching it well. The data tells us 2020 brought a slew of new and heavy consumers to the cannabis market, with a large majority of those new consumers being women. The report further says women favor products like gummies, topicals (17% of female consumers), vape cartridges (40% of women consumers), and flower (57% of female consumers). Cannabis companies can take advantage of these new consumers and develop a brand strategy that appeals to them. 

More Americans consume cannabis than plant-based meats

More Americans reported consuming cannabis in the past three months than hard seltzer, soy milk, and plant-based meat. According to the Brightfield report, 10% of Americans reported consuming cannabis in the past three months, with 13% of total consumers being Millenials – the most likely generation to consume cannabis. Hard seltzer, soy milk, and plant-based meat were used by 7%, 6%, and 8% of Americans, respectively. Americans still consumed more granola bars and sports drinks in 2020 than cannabis though. The report shows 13% of Americans consumed granola bars in the past three months and 15% of Americans consumed sports drinks. 

Key takeaways 

What we can gather from this report, and other consumer reports like this one, is that Americans are past ready for cannabis legalization, especially after the stress 2020 brought. 

All different kinds of people are entering the cannabis market, both as businesses and consumers, so those brands who identify and aim to understand their target audience will do well as American (and global) cannabis policy reforms over time. 

Many consumers believe now that Joe Biden is the president, April 20, 2021 will be the last illegal 4/20. Currently, there’s not a bill in circulation to legalize cannabis at the federal level, but many are pushing and hoping for it under the new blue administration.  


Debra BorchardtDecember 9, 2020
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5min16320

Looking back at 2020, the Brightfield Group determined the cannabis product shelf space winners. A review of the first three quarters provided a snapshot of which products cannabis consumers wanted most. This type of information is invaluable to producers and dispensary owners alike. The producers can make sure that they have these products in their portfolio and dispensaries can make sure they stock their shelves with the items that customers want.

Increased 2020 Shelf Space:

  1. Candy
  2. Cartridges/Pods
  3. Resin/Rosin
  4. Disposable Pens
  5. Baked Goods

Candy

Brightfield’s report found that since January 2020, the candy category has captured 12% of the shelf and in August held 14% of the shelf its largest position to date. The category has grown by 41% in 2020. The report also noted that the shelves saw a shift towards luxury and premium prices.  Consumers have also been drawn to natural marketing and like options that are vegan, non-GMO, and additive-free.

Top Candy Flavors:

  1. Raspberry
  2. Watermelon
  3. Strawberry
  4. Fruity
  5. Chocolate

Top Candy Brands

  • Cheeba Chews
  • Smokiez Edibles
  • Kiva Confections
  • Wyld

Vapes

Despite the vape crisis of 2019, vape products commanded 22% of the shelf space for 2020. The report found that cartridges and pods grew shelf space by 3% in 2020. 74% of these products were in 500mg packages and a majority were marketed for relaxation and stress relief. The price preference was the opposite of candy, but that’s probably because vapes in general are more expensive. Budget-priced products saw an increase in shelf space and premium-priced products saw shelf space declines.

Top Vape Attributes

  1. Relaxation
  2. Stress
  3. Focus & Creativity

Top Vape Brands

  • Stiiizy
  • Jetty Extracts
  • Raw Garden
  • Curaleaf
  • Pure Vape
  • Alpine

Resin & Rosin

THC concentrates continue to win over new consumers. The product packs a bigger punch than vapes or traditional flower that typically deliver 15%-35% THC. These concentrates can provide doses of 60%-90% THC. While dabbing shatter, wax, or crumble has been the predominant concentrate method, rosin and live resin are coming on strong. Rosin is made with a solventless method that relies only on heat and pressure to extract cannabinoids and delivering a “cleaner” dab. Live resin is made with more traditional extraction methods and preserves the terpenes. This category increased its shelf space by 3%, while the shatter, wax and crumble categories fell.

Disposable Pens

Brightfield found that while disposable pens only garnered 4% of the dispensary shelf space, distribution grew by 68% in 2020. Once again, stress relief was the top choice for this consumer. The smaller products having 300mg grabbed the most space within the category and tend to be the most affordable. It’s the product of choice among the price-conscious consumer.

Baked Goods

Marijuana brownies are the OG of cannabis consumers, but the inconsistent response time for consumers make these products less desirable. Customers may react quickly or slowly after consuming a cookie or brownie and this lack of consistency is an issue. Only 3% of the distribution goes to this category. Still, in 2020 there was a 40% increase in shelf space for baked goodies.

Brightfield’s Top ten Product Launches of 2020:

  1. Care by Design – 8:1 Vape Cartridge
  2. Claybourne Co. – 501St OG Bud
  3. Kiva Confections – Midnight Blueberry Camino Gummies
  4. Stiiizy – wedding Cake Live Resin Pod
  5. Raw Garden Sleeroy G Pod
  6. Yummi Karma – YK Drops – Draft Away
  7. West Coast Cure – Venom Og Live Resin Sauce
  8. Pacific Stone – 505 Sour Hybrid Bud
  9. Heavy Hitters – Forbidden Fruit Cartridge
  10. Connected Cannabis Co. – 100% Live Resin Disposable

 

 


Debra BorchardtJuly 28, 2020
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7min24510

The passage of the 2018 Farm Bill legalizing hemp sparked a CBD rush with millions in sales and seemingly everyone starting a company using some form of hemp-derived cannabis oil.  Last year’s BDSA and Arcview Market Research, industry report estimated that CBD sales in the U.S. would surpass $20 billion by 2024. New York-based investment bank Cowen & Co forecast that the market would hit $15 billion by 2025.

A new report from the Brightfield Group, US CBD Market July 2020“, warns those numbers will be much lower as a result of the impact of COVID-19 on shoppers. Several reasons are behind the drop in sales from lockdowns causing brick and mortar store closures, to shifts in retailers making deliveries and even the job crisis that is hurting consumers’ wallets. The report stated that in 2020, the US hemp-derived CBD market is projected to reach $4.7 billion in sales, with 14% growth from 2019 sales of $4.1 billion. The market had been expected to grow by over 30%.

Stay At Home

One big problem for CBD shoppers was the request from states with big outbreaks to stay at home and only venture out if absolutely necessary.  The report noted that there would be a loss of revenue from store closures as many retailers selling CBD products had either closed temporarily during the crisis or were only offering curbside pickup and delivery. “Even for CBD specialist retailers and smoke shops that remain open, they are experiencing steep declines in sales as social distancing guidelines and consumer worries about contracting the coronavirus keep
shoppers at home.” That meant more online shopping, which worked well for established brands.

Nearly half (45%) of CBD consumers surveyed in June 2020 by Brightfield said they moved their CBD purchases online because of the coronavirus crisis. “Millennial shoppers are the most likely to have switched to e-commerce for their CBD needs, with 54% reporting switching from brick and mortar stores to online as they also increase their
usage and spending during this stressful time. CBD market leaders have seen online sales increase dramatically in the first half of 2020 but are still making efforts to expand in brick and mortar retailers to set up for future success and broader brand awareness.”

Brightfield said well-known and trusted brands that already had a strong DTC (direct-to-consumer) model already established benefited from the online move. “New CBD companies though found it difficult to enter retail channels as in-person sales calls have been paused and major trade shows such as Natural Products Expo West and NoCo Hemp Expo had been canceled.”

No Job, No Money

Anyone who has purchased quality CBD products knows they don’t come cheap. “With Americans facing high unemployment levels (11.1% in June 2020 compared to 3.8% in February 2020) year 2020 retail sales are
not expected to reach levels anticipated prior to the emergence of the COVID-19 pandemic.” Over 30 million Americans were receiving unemployment benefits as of July 14, 2020. The report also said that high unemployment rates and a reduction in disposable income are causing prices to fall in the US CBD industry sparking a domino effect felt at the beginning of the hemp chain. Hemp farmers have seen the price of their crops drop sharply due to the increase in supply. According to data from Hemp Benchmarks, the aggregate assessed price for hemp CBD biomass declined by 79% from April 2019 to April 2020, from $38.00 per pound to $8.10 per pound.

Ultimately the prices will fall for consumers as producers adjust their models accordingly. Brightfield also found that price was the second biggest factor for consumers when making CBD purchase decisions. Consumers are really trying to make sure they can buy the most effective CBD product for the best price.

So Stressed

Without a doubt, this has been a stressful time for many. The pandemic, Black Lives Matter protests and continuing climate change worries are causing an increase in consumption of CBD. Heavy users have increased their consumption. “Anxiety is the number one ailment of CBD users, with 42% of them reporting it,” according to Brightfield Group’s consumer insights. “Depression and insomnia, which are likely to rise over the coming months, rank second and sixth.”

In a Brightfield Group survey of 5,000,  CBD consumers fielded online from June 2 to 24, 2020, 39% stated that they are using more CBD as a result of the COVID-19 crisis. “This sentiment was even higher among Millennials and Gen Z consumers – 47% plan on using more CBD in the months to come. Younger consumers are more likely to increase their CBD usage in response to the COVID-19 pandemic. More than half of Millennials (51%) and 48% of Gen Z have upped their CBD usage frequency, compared to only 40% of Gen-X and 17% of Boomers.”

Consumers are choosing higher dosages and pivoting away from vapes and more towards edibles. COVID-19 has been especially hard on respiratory systems. While CBD companies can’t say their products should be used to fight COVID-19, many consumers want to boost their immunity and feel CBD is one way to accomplish this.

 


William SumnerJuly 31, 2019
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It’s time for your Daily Hit of cannabis financial news for July 31, 2019.

On the Site

Brightfield Group Names Top 5 CBD Companies

The CBD industry is becoming much more saturated than it was before the passing of the U.S. Farm Bill late last year, with new products entering the market, threatening to take a slice of the CBD pie that the early producers of CBD have enjoyed until this time…Brightfield Group listed the Top 5 CBD Companies that the research group says “continue to make a name for themselves” within the growing CBD market. Here’s what we know about these various companies…

TILT Holdings

Following the market close and at the end of the evening on Tuesday, TILT Holdings Inc.  (CSE: TILT) (OTCQB: SVVTF) said that it refiled amended and restated management’s discussion and analysis for the quarters and year ended December 31, 2018, and for the three month period ended March 31, 2019, and 2018  (the YE 2018 MD&A and the Q1 2019 MD&A together.  The documents were prepared following a continuous disclosure review by the British Columbia Securities Commission of the company’s disclosure records.

CannTrust

Following the disastrous revelation that the company began growing cannabis plants in grow rooms without licenses, CannTrust Holdings Inc. (TSX: TRST)(NYSE: CTST) said that its special committee has retained Greenhill & Co. Canada Ltd. as the Special Committee’s financial advisor, to assist in a review of strategic alternatives. Those options include a sale of the company, a merger or changes to the company’s strategy. The interim CEO has said the talks are happening at only a conversation level at this time.

In Other News

Harvest Health & Recreation

Harvest Health & Recreation, Inc. (CSE: HARV,) (OTCQX: HRVSF) announced that it has entered a term sheet for a secure term loan of up to $225 million. The loan comes from an investment fund managed by Torian Capital Partners, and will be made available to Harvest in three tranches of $75 million. Harvest will use the proceeds from the loan to fund expansion initiatives. “Harvest is in a strong financial position in the cannabis industry and this growth capital, which we believe is provided at an attractive financing cost will enable us to deliver on our commitment to enhance shareholder value,” said Steve White, CEO of Harvest. “With greater financial flexibility, we are better equipped to execute our strategy to aggressively expand our retail and wholesale footprint across the U.S. into key markets, while seeking to build and acquire brands for broad distribution,” White concluded.


Anne-Marie FischerJuly 31, 2019
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According to Brightfield Group, the CBD market in the U.S. has grown over 700% in 2019.

The CBD industry is becoming much more saturated than it was before the passing of the U.S. Farm Bill late last year, with new products entering the market, threatening to take a slice of the CBD pie that the early producers of CBD have enjoyed until this time.

Nevertheless, the top 20 CBD companies still hold a majority of the even bigger pie that is CBD in the cannabis industry. 

Brightfield Group listed the Top 5 CBD Companies that the research group says “continue to make a name for themselves” within the growing CBD market. Here’s what we know about these various companies:

 

  • CW Hemp (Charlotte’s Web)

 

Earlier this summer, Charlotte’s Web Holdings (TSX:CWEB)(OTCQX:CWBHF) announced that their total acres of hemp planted for the 2019 growing season had increased 187% due to interest and demand for the products. Prior to that, the company reported its earnings for the first quarter with revenue growing 66% to $21.7 million. 

“Interest and demand for our products has been exceptional and growing rapidly. Our 2019 planting strategy ensures we will have the required raw materials to deliver on production targets for Charlotte’s Web products through 2020 and into 2021,” stated Deanie Elsner, CEO of Charlotte’s Web. “Our leading CBD hemp varieties under cultivation today are the foundation of our 2020 production plan.”

Brightfield Group remarked of the company: “By deeply understanding who they are as a brand and identifying the consumers that resonate with their messaging, they have built the foundation for potentially life-long customers and advocates.”

  1. PlusCBD Oil (CV Sciences)

PlusCBD Oil by CV Sciences (OTCMKTS: CVSI) has found success largely due to their low-dose capsule and softgel formats that Brightfield Group referred to as “a safe bet for more conservative users”. Green Market Report has been watching the steady increase in CV Science’s company value following last year’s impressive sales jump of 203% in the second quarter. 

The company is expected to announce its second-quarter results for 2019 on August 6. 

        3. Green Roads World

Green Roads offers unique, high-dose products, and have built their success on effective social strategies. With a growing employee base of over 100 the company had an estimated value of $45 million in 2018, according to co-founder Arby Boroso. 

The company sells CBD-infused products such as tinctures and balms, online and in 6,000 stores and 2,000 doctors’ offices across the country. Brightfield attributes their “values-based marketing” to their success and prominence in the CBD industry. 

  1. Medterra

Medterra’s growth is largely due to its effective SEO strategy and marketing. With a site that is full of engaging content that manages to get past the limitations of search engines, Medterra gets itself in front of the eyes of consumers.

The company recently announced a foray into the sports, fitness and golf communities, by partnering with Worldwide Golf Shops, the parent company to Edwin Watts, Roger Dunn, and some of the most well-known and established golf retail stores in the United States. 

  1. Irwin Naturals

Irwin Naturals turned heads when Klee Irwin, the founder of the company announced the company would be giving away $1M worth of CBD products to honor the passing of the Farm Bill. 

The company is concerned with making the cost of CBD products affordable, saying “Our mission is to spread health to the world through plant medicine. Our nation is on the edge. And I am worried about the future of our children. If we can make CBD affordable and accessible to the masses, it just might help our country avoid a meltdown.”

Groups of Competitors in the CBD Market

Brightfield Group laid out the different types of companies and brands that are continuing to lead the pack when it comes to innovative marketing, advanced products, and ways to stick out in the market. These companies are those who are:

  • CBD-only companies that have established brand loyalty, improved marketing strategies, and grow larger and more diverse customer bases
  • Cannabis companies including multi-state operators that leverage networks and infrastructure to build brand recognition and raise capital to expand CBD lines
  • Supplement brands existing in the natural food store and retail chain space
  • Disruptor brands that were little-known prior to this year and have risen up in the ranks as they’ve been picked up by large retail chains

As it is only still summer, it remains anyone’s game as to who will end up at the finish line in the CBD brand race by the end of the year.  


William SumnerJune 4, 2019
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4min10520

It’s time for your Daily Hit of cannabis financial news for June 4, 2019.

On the Site

FDA Holds Public Hearing on Regulating CBD

Last week, the U.S. Food and Drug Administration (FDA) held its first public hearing on regulating cannabidiol (CBD). Over the last several years, CBD has been growing in popularity as a health and wellness product. That popularity has only been amplified by the passage of the 2018 Farm Bill, which removed hemp and hemp-derived products (CBD included) from the federal government’s list of controlled substances. At stake in these hearings is a potentially billion-dollar market. According to Brightfield Group, the CBD market could grow to as high as $22 billion by 2022.

Green Growth Brands

Green Growth Brands, Inc. (GGB.CN) (GGBXF) has announced that it has executed an arm’s length definitive agreement to acquire all issued and outstanding shares of Spring Oaks Greenhouses (Spring Oaks) for approximately $54.6 million. Spring Oaks is a licensed medical cannabis provider in the state of Florida.

In Other News

DionyMed Brands

DionyMed Brands Inc. (CSE: DYME) (OTCQB: DYMEF) has announced its financial results for the quarter ending on March 31, 2019. Quarter-over-quarter, revenue rose from $5.5 million to $14.4 million. Adjusted EBITDA was a loss of $6 million, which the company attributes to increasing platform costs to support its continued growth activities. The net loss for the period was $1.03 million. “Our continued growth, both financial and operational, is a direct result of our ability to deliver today’s leading cannabis brands to consumers through the industry’s most efficient cannabis brands platform. Our first quarter financial results demonstrate the success of our efforts to scale our Direct-to-Consumer and retail distribution businesses through organic growth initiatives,” said DionyMed CEO Edward Fields.

Fire & Flower

Fire & Flower Holdings Corp. (TSXV:FAF) announced that it has entered into a letter of engagement with Eight Capital, pursuant to which Eight Capital and GMP Securities L.P. will purchase, as co-lead underwriters and joint bookrunners, 15 million convertible debenture units of the company for $15 million. A single unit consists of one $1,000 principal amount unsecured convertible debenture and 278 common share purchase warrants. Each warrant entitles the holder to purchase one common share of the company, for up to 24 months following the closing period, at a price of $1.45 per share. The company will use the proceeds from the offering for working capital and general corporate purposes.


Video StaffJune 4, 2019

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The Economics of the New Hemp Market is a panel that was held on May 7 at the Green Market Summit in Chicago. The legalization of hemp is so new that the regulations are still being written. Data will be key to unlocking this industry and industrial grade price assessments will be needed over the next few months to support futures trading on a major commodity exchange sometime early 2019. This panel was led by moderator Peter Vogel, CEO Leafwire and he was joined by Jonathan Rubin, Founder – Cannabis Benchmarks, Kevin Pilarski Chief Commercial Officer – Revolution and Bethany Gomez, Director of Research – Brightfield Group.


Debra BorchardtOctober 10, 2018
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The typical cannabis consumer has been portrayed as mostly male and scruffy. Think Shaggy from Scooby Doo, Cheech & Chong or even James Franco’s Saul Silver in Pineapple Express. The only suburban mom ever shown as smoking marijuana was probably Mary Louise Parker’s Nancy Botwin in the HBO show Weeds.

As more data is compiled on cannabis consumers, the demographic profiles are proving to be pretty surprising. Brightfield Group pulled data from a survey combined with the social listening of over 6,000 individuals and growing (located in California, Colorado, Washington, Oregon, Nevada, and Canada). Its portal gives users the ability to drill up and down consumers’ core with a magnifying glass and the results are revealing.

“Our personas were developed using a mixed-method approach of machine learning and cluster analysis supported by content and qualitative expertise applied with scrutiny,” said Director of Research Bethany Gomez. “A taste of our cannabis consumers include Boomerangs (Baby Boomers who are returning to cannabis in their later years), Divorced Dads, Microdosing Mamas, and the Liberal Elite.”

Divorced Dads

As the name implies, Divorced Dads are divorced men with children. These guys are overwhelmingly white (97%), and nearly half are between the ages of 57 and 79 (47%). The second largest group of Divorce Dads is the 46 to 55 age group with 25%. Approximately 15.69% of Divorced Dads are between the ages of 36 and 40.

Roughly 41% of Divorced Dads are daily cannabis users. Another 33.3% use cannabis 2-4 days per week. 37.25% of Divorced Dads have used cannabis consistently, another 33.3% have used cannabis on and off.

More than three-quarters of Divorced Dads spend less than $150 a month on cannabis (78.45%). Approximately 17.65% of Divorced Dads spend between $151-$250, and only 3.92% more than $250 a month. Regarding product spend, roughly 62% spend less the $30. 19.61% spend between $31-$50. Only around 17% of Divorced Dads spend more than $50.

Approximately 74.47% of Divorced Dads use cannabis to relax at home. Aside from relaxing at home, the most popular activities for Divorced Dads to use cannabis is home duties (48.94%), outdoor activities (44.68%), concerts or music (38.3%), and with friends at home (36.17%). They are also not very brand loyal.

Roughly 43.14% of Divorced Dads suffer from chronic pain. Another 37.25% suffer from anxiety and/or insomnia, with another 21.57% suffering from depression. Sounds like these sad dads need some cannabis.

Microdosing Mamas

Microdosing Mamas are mothers with children at home, who regularly use cannabis in doses of less than 100 mg. Many companies like Satori are now making edibles products with dosages that drop to as little as 1 mg of THC or Mr. Moxie’s Mints with only 5 mg of THC. Petra Mints by Kiva Confections are sold with only 2.5 mg THC and these are just a small sample of the types of microdosing products available.

Approximately 28.46% of Microdosing Mamas have used cannabis consistently, while another 27.08% have used cannabis on and off throughout their life. Another 19.37% are returning users that are medical patients, while another 7.31% are returning users that are recreational users. Roughly 9.29% of Microdosing Mamas are new medical users, and another 7.91% are new recreational users.

These are young mamas. Age wise, nearly half are between the ages of 21 and 35 (49.22%). 25.88% are between the ages of 36 and 45; another 23.9% are between 46 and 79. Regarding usage rates, 35.77% of Microdosing Mamas are daily users, while roughly 21.54% only use cannabis a few times a year. Mother’s little helpers.

Most Microdosing Mamas prefer to use cannabis while relaxing at home (74.25%), followed by home duties (63.81%), outdoor activities (51.51%), before or after a workout (48.72%), with friends at home (44.78%), and during a meal (43.85%). On average, 46.83% of Microdosing Mamas spend $50 or less a month on cannabis.

Approximately 21.54% spend between $51-$100 a month on cannabis. Nearly a quarter (24.51%) spend between $101-$250 a month. In terms of product spend, 88.74% spend $50 or less, and 11.26% spend more than $50.

Microdosing Mamas often suffer from a combination of medical conditions. The most common of these conditions are anxiety (61.46%), depression (43.87%), and chronic pain (39.33%). Although they use cannabis in lower dosages, Microdosing Mamas spend more money per month on cannabis than any of the other previously discussed groups.

Unlike the sad dads, Microdosing Mamas display indications of being confident and joyful. They also tend to be loyal shoppers.


Video StaffOctober 4, 2018

1min15830

At the recent Green Market Summit on September 14, 2018, a group of top cannabis industry professionals discussed The Economics of the Cannabis Consumer. David Dancer, Chief Marketing Officer at MedMen, Jeff Stein Managing Partner at Consumer Research Around Cannabis and Bethany Gomez Director of Research at Brightfield Group talked about which consumers were the most loyal cannabis consumers and what they bought.

Understanding who is using cannabis can help businesses gain a significant advantage over
competitors. According to a recent research study from DIG Insights, approximately 25% of
Americans have used cannabis in the past year. At present, the majority of current cannabis
users are men under the age of 40, with roughly 86% of all cannabis purchases nationwide
being illegal purchases. Read more in the Economics of Cannabis Consumers report.


Anne-Marie FischerSeptember 12, 2018
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Brightfield Group, which has established itself as a thought leader in the CBD space, just announced projections for the hemp CBD industry to become a $5.7 billion market by next year, with a projection of growth by nearly 40x to $22 billion by 2022.

These projections come in anticipation of the passing of the 2018 U.S. Farm Bill, which would fully and unambiguously legalize hemp and its extracts across the country.

“We believe that blowing market sizes and growth figures out of proportion would do our customers and market a great disservice,” said Brightfield’s Senior Analyst Jamie Schau, “This year’s hemp CBD forecasts might seem like a departure from that view, but I assure you they are not. These numbers reflect the substantial changes we anticipate will follow full federal legalization of hemp-derived CBD.”

There has been a long-standing industry-wide confusion on the legal status of hemp in the United States. The 2014 U.S. Farm Bill has been misinterpreted for years in leading people to believe that hemp is legal. The legalization of hemp in this context only permits the growing of hemp under a state pilot program or for the purposes of academic research. As of now, hemp, and CBD are deemed illegal, a fact supported by the Drug Enforcement Administration (DEA).

The 2018 U.S. Farm Bill is anticipated to be a “game changer” for the hemp-CBD market, as it will fully and unambiguously legalize hemp and its extracts.

Brightfield Group anticipates that hemp-derived CBD will “become the next major nutraceutical phenomenon.”

Vote Hemp said that since the passage of Section 7606 of the Farm Bill, “Legitimacy of Industrial Hemp Research,” hemp cultivation in the U.S. has grown rapidly. The number of acres of hemp grown across 19 states totaled 23,343 in 2017, more than double the number of acres from the previous year.  The group also said that state licenses to cultivate hemp were issued to 1,424 farmers; and 32 universities conducted research on the crop.

The Hemp Industries Association (HIA) reported that in 2015, retail sales for hemp products reached $600 million, which is much lower than the $5.4 billion for marijuana sales in 2015 as reported by ArcView. HIA says that hemp sales on average grow by 15% each year and that most of that growth can be attributed to more people buying hemp-based body products and supplements.

Most of the hemp for these sales was imported from China and Canada. Hemp imports for 2015 were nearly $78.2 million according to U.S. trade statistics. However, there is no trade data for products like hemp-based clothing or construction materials, paper products or even carpet made from hemp. Thus, it’s difficult to determine what exactly the hemp market is in the U.S.

This report comes on the heels of a research study that Brightfield conducted in partnership with HelloMD, which showed the potential for CBD products to help users cease use of traditional medicines.

Brightfield Group’s 2018 Hemp Derived CBD Study, can be found for purchase at https://www.brightfieldgroup.com/plans/hemp-derived-cbd-report.

 


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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