Consumer Research Around Cannabis Archives - Green Market Report

Jack SmithJack SmithOctober 23, 2018
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5min11410

A new study shows that 69.5% of Las Vegas residents approve of legalized marijuana. While marijuana is legal in the state, usage has now surpassed more than the 50 percent mark, implying that people are becoming more comfortable with it as time goes on.

The study, produced by Consumer Research Around Cannabis for Green Market Report, shows that 52.2 percent of approximately 1.4 million respondents approve of marijuana use for both recreational and medicinal purposes. An additional 16.7 percent approve of it for medicinal use, though they have no opinion or disapprove of recreational use, while 0.6 percent approve of recreational use and have no opinion or disapprove of medicinal usage.

Just 14.7 of respondents disapproved of cannabis in both recreational and marijuana settings and 12.2 percent did not have an opinion either way.

Marijuana became legal for recreational use at the start of 2017 and acceptance of it has jumped since late 2017, as 52% of respondents said they had used or bought it in the fall, up from 44 percent in the spring.

Who’s Buying

Cannabis consumers range all parts of the spectrum, covering a wide range of demographics. Nearly half of the adult population 21 and over, 772,000, said they were cannabis consumers. They are approximately 45 years in age, have an average household income of $53,263, and have an average home value of just over $278,000. Forty-one percent of consumers are married, while 49 percent have kids at home.

By comparison, the 1.49 million people living in the market average 47 years old, 45% are married and 46% have children, making the numbers comparable.

“The percentage of adults A21+ that are currently using cannabis for medical reasons has increased to 18.1% from 14.3%,” the study said. “Top health reasons for consuming cannabis include: treating temporary/minor pain, chronic pain management, alleviating mental health issues, to assist with sleep and to treat a non-pain medical condition.”

18% of the consumer in the greater Las Vegas area have been buying cannabis in order to treat addiction problems. This could be for alcohol or opioids. According to the most recent data, Nevada ranks in the top ten states for drug and alcohol abuse. Nevada is also the second in the country for non-medical use of hydrocodone and oxycodone. Per capita sales of oxycodone have increased 366% in the last 10 years, while sales of hydrocodone have increased 233%.

Actual Sales

For the fiscal year 2018 (July 2017-June 2018), the Nevada Department of Taxation reported that it collected $27.3 million in wholesale cannabis taxes and $42.5 million in retail taxes. Taxable sales reported by adult-use retail stores was $529.8 million.

If spring is considered April, May, and June, sales increased from $47.5 million in April to $48.3 million in June. Nevada has only reported sales through July 2018, but the numbers continue to climb to $48.4 million. If the CRAC is accurate then the state is in for a very generous fall.

The Vegas cannabis market continues to grow as big retailers like MedMen continue expanding their retail footprint and the new enormous Planet 13 dispensary prepares to open on November 1. This dispensary will cover 16,500 square feet inside a 40,000 square foot cannabis entertainment destination. A cannabis superstore is surely going to generate big sales.


William SumnerWilliam SumnerMarch 15, 2018
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3min7090

How do cannabis users in the Seattle spend their money? That is a question that many cannabis businesses would love to know the answer to. As one of the largest markets in the state of Washington, the Seattle-Tacoma Greater Metropolitan Area is a battleground for countless companies and entrepreneurs hoping to make their name in the fledgling legal cannabis market.

In the latest Cannabis Market Research Report, readers are offered a look into the Seattle-Tacoma cannabis market and its consumer’s spending habits. Today, Green Market Report will walk you through the numbers and show you some of the highlights of this report.

Out of the entire population of the Seattle-Tacoma area, approximately 3.7 million are adults over the age of 21. Of those 3.7 million, approximately 44% (1.8 million) are cannabis users. The average of a cannabis consumer is 47, compared to the average of 48 for the total market.

The average income of a cannabis consumer from the Seattle-Tacoma area is $63,592, compared to the market average of $67,605. The average home value of Seattle-Tacoma cannabis consumers is $393,718, compared to the total market average of $419,780.

On average, cannabis users spend the most per month on cannabis flower ($66), with concentrates coming in at second ($57). Trailing behind the top two is vape oil ($48), pills ($40), and vape flower ($36).

Likewise, cannabis flower has the highest number of monthly buyers with over 600,000 purchases. In second place is edibles with 422,023 purchases, followed by pre-rolls with 383,614 purchases.

Less than half of cannabis consumers are married (43%). With regards to children, approximately 42% of cannabis consumers have children at home. For the market average, approximately 54% of adults over the age of 21 are married and 41% have children at home.

Compared to the market average, cannabis users are more likely to:

  • Plan a home improvement in the next 12 months
  • Have an optimistic financial outlook
  • Have visited a casino or gambling establishment
  • Plan to buy home electronics
  • Have a car loan

A majority of adults over the age 21 in the Seattle-Tacoma area approve of legal cannabis in some shape or form. Approximately 53% of adults approve of both recreational and medicinal cannabis, 18% approve of medicinal cannabis. Only 11% approve of both recreational and medical cannabis.

This latest report seems to affirm previous data on cannabis consumers habits. As cannabis continues to become mainstream in the United States and around the world, these reports help illustrate what many have suspected all along: there is little difference between cannabis consumers and non-consumers.


Michelle JanikianMichelle JanikianNovember 9, 2017
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8min25260

Green Economics Part 5: Sports Preferences

In a new study recently conducted by Green Market Report in conjunction with Consumer Research Around Cannabis and their partner Local Sports Insights (LSI), the sports preferences of cannabis consumers around the country resulted in a win for the NFL and football overall.

Professional football beat out other sports by far with 55.1 percent of interviewees saying they regularly follow the NFL. It defeated professional baseball (MLB), which 36.2 percent of consumers confirmed watching, pro-basketball (NBA), which was chosen by 36.1 percent of consumers, and pro-hockey which raked in 27.8 percent of the vote.

According to the study, the most popular college sport among consumers was also football, which 31.6 percent of consumers watch, followed by college basketball, which 25.7 percent are fans.

“The NFL has been the most successful professional sports league over the past couple of decades – supplanting Major League Baseball. In many ways the league’s success mirrors our nation when it comes to income, age, and education,” said Vice President of Consumer Research Around Cannabis, Jeffrey Stein.

Some of the cannabis consumer averages were on par with national averages, according to a recent Gallup study. Gallup found 57 percent of the population to be professional football fans found that very close to the Green Economics average for cannabis users of 55.1 percent. The national average was also close for professional basketball (40 percent) and ice hockey (28 percent), but the rest had significant differences.

“I was surprised that football was number one,” said Co-Founder and CEO of the Green Market Report as well as recognized cannabis influencer, Debra Borchardt. “I really thought basketball would’ve been number one since it’s a sport followed by more young people and is growing in popularity, while ratings have been falling for football.”

According to Local Sports Insights, 26.4 percent of adults over 18 follow professional basketball. And 36.1 percent of cannabis users follow the NBA. So, technically LSI found that NBA popularity is indeed 37 percent higher among cannabis users than the average person.

The numbers shouldn’t be that surprising considering how much legal cannabis delivery sales increase before the Super Bowl. In 2016, Eaze reported there was a 47.5 percent increase in cannabis deliveries in California from 2-3PM, the hour before kick-off. When the Denver Broncos were in the Super Bowl in 2016, Sally Vanderveer, President of Denver’s largest dispensary, Medicine Man, told Forbes: “We saw a 30-40% uptick in sales from Thursday to Sunday [before the Super bowl]”. Interestingly, Local Sports Insights found 50.5% of Broncos fans have used marijuana in the past year.

What may be surprising is the profile of NFL fans who also consume cannabis. Green Economics found the average age is 37 with a median household income of $60,387. In addition, 33.2 percent of NFL fans are college graduates and 13.5 percent are business owners.

Local Sports Insights found that 48 percent of all surveyed women follow professional football. There were more men than women who follow the NFL that use cannabis: 65.5 percent were men and 34.5 percent were women.

This research not only kills the stereotype that “stoners” don’t like sports, but shows how Americans are choosing to relax in states where cannabis is legal. Considering the popularity of alcohol during sporting events, cannabis could be a safer alternative and help prevent drunk driving, domestic abuse, and hangovers associated with NFL games.

The NFL still doesn’t allow its players to consume cannabis, although many activists are fighting to change that, like former lineman for the Chicago Bears, Eben Britton.

“Cannabis can help NFL players on multiple levels,” said Britton. “First and foremost our federal government owns a patent on cannabinoids ‘as neuroprotectants and antioxidants’… cannabis should be at the top of the NFL’s list of substances to help combat concussions and CTE. The second way cannabis could directly benefit NFL players is as an alternative to opiates. In most cases, I believe pro football players would rather consume cannabis than opiates. Cannabis may also be used in conjunction with opiates to help mitigate negative side-effects and ease withdrawal symptoms.”

Using cannabis as an alternative to opioids for pain is becoming a popular idea. Plus, many believe cannabis can help opioid addicts wean off the powerful substance in the midst of an epidemic in the U.S.

“This study was encouraging because the most vocal advocates for allowing cannabis as an alternative to deadly pain medications are professional football players,” said Cynthia Salarizadeh, Co-Founder of the Green Market Report. “The NFL helps provide an appropriate platform for their fight with their massive visibility. Hopefully their owners will listen and allow their players the right to choose what medication they use for their pain management.”

The NFL is worth $9 billion annually, but they could still benefit from allowing cannabis brands to sponsor teams and events. Not to mention, the benefits the plant can have for its players. Considering cannabis’ popularity spreading into more mainstream communities, I wouldn’t be surprised to see a cannabis commercial during the SuperBowl this year.

 


Cynthia SalarizadehCynthia SalarizadehOctober 4, 2017
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5min37900

Coca Cola takes first place over Pepsi and Dr. Pepper as the most preferred soda brand among cannabis consumers.

In a study conducted by Consumer Research Around Cannabis and Green Market Report for the Cannabis Freakonomics series, over the last 7 days and throughout 25 Markets with a sample size of 27,503 responses, over 32% of cannabis consumers chose Coca Cola over any other brand. Pepsi came in at 23.8%, Dr. Pepper held 13%, Mountain was the favorite at 12% and Sprite had 11%.

“Coca-Cola is perhaps the most well-known brand in the world and they have tremendous distribution.  Of course regional tastes, ethnicity and cannabis legality state by state are also factors to consider.  As beverage companies add cannabis consumer research to their arsenal for branding and marketing, Coke may not always be #1.  Its not too different from what we saw with McDonald’s and fast food,” said VP of Sales for Consumer Research Around Cannabis Jeff Stein.

“Coke is the clear winner over Pepsi with cannabis consumers. That may be because it is the soda sold at McDonald’s, which we found out last week is their overwhelming choice for fast food,” said Green Market Report CEO Debra Borchardt. “The choice of Red Bull over diet drinks may be because of the company’s sport sponsorships. Red Bull backs athletes from sports like BMX racing, snowboarding, surfing and skateboarding. Many of these sports are less formal than traditional sports and some of the athletes are open about their cannabis consumption.”

This could all be good news for struggling soda revenues as the build their non-soda brands and bring healthier beverages to people around the globe.

Throughout the press these days, soda brands such as the ones cannabis consumers surveyed were asked to stake their preference in continue to try and move toward being understood as companies that include more than just soda, which is largely agreed to be a far less healthy option for beverage consumption compared to water or organic juices.

Soda sales continue to fall throughout the United States, and Coca-Cola (NYSE:KO) is actively pursuing a perception that indeed positions them as more than just a soft drink company. Coke now wants to be known as a “total beverage company”. They now offer non-soda brands that include Odwalla juice, Smartwater and Honest Tea, however most of their revenue still comes from soda.

Pepsi (PEP, +0.14%) just claimed that their North American business took a hit and lost market share in its most recent quarter because the company began to focus marketing efforts away from their key soda brands of Pepsi and Mountain Dew and moved them toward the healthier option of its LIFEWTR. This proved to be a decision that hurt initially.

These changes will continue to hurt in the beginning as the market calibrates. But, water should also not cost more than soda. These brands will have to push forward as people require something healthier and accept that it will take time to adjust.

“Consumers are looking for products that are more natural,” explained the new Coca Cola CEO, James Quincey, “At times with less sugar. Sometimes with more benefits.”

Coke hopes to reduce sugar in more than 500 of its drink by the end of 2017. “We’ve begun our journey toward that goal,” Quincey said.

In the meantime, cannabis consumers have reviewed the available soft drink brands and Coca Cola wins.


Cynthia SalarizadehCynthia SalarizadehSeptember 27, 2017
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4min104464

Cannabis Freakonomics Part 2: Fast Food Preferences 

In a new study we have conducted in conjunction with Consumer Research Around Cannabis, we found that 43% of people who bought legal marijuana chose McDonald’s as their go-to place to eat fast food when experiencing the munchies.

The study was conducted over several marketplaces across the United States with a base population of 55 million.

The study also dove deep into people who purchased cannabis from a legally authorized dispensary, which was 4.7 million or 8.5% of the population.

In the past four weeks alone, 43% of those marijuana customers said they ate at McDonald’s. The second most popular place to eat was Taco Bell, accounting for only 18% of the cannabis consumers.

Wendy’s came in third place with 17.8%, just barely beating Burger King at 17.6%. Subway ranked in fifth at a tiny 8.7% compared to the previous four spots. Kentucky Fried Chicken hit the list at number six with only 5.5% going to eat there over the past four weeks.

The additional fast food names in the top ten list were Arby’s, Chick-Fil-A, Jack-In-The-Box and Carl’s Jr. (in that order).

“McDonald’s wins by virtue of the sheer number of locations – by default really,” said Jeff Stein, Vice President of Consumer Research Around Cannabis. “Those competitors which better understanding cannabis users and their consumer habits can certainly close the gap by integrating what they learn through their marketing efforts.”

As cannabis is known for its appetite inducing side effect, which is one of its most beneficial qualities for those suffering from diseases that hinder appetite or take medication that make it difficult to eat, understanding the spending habits of consumers is critical.

The new report is part of a series of research market snapshots called “Cannabis Freakonomics” that covers data collected by Consumer Research Around Cannabis.

“The data that we have collected has unveiled a ton of interesting findings that we would like to share with the industry,” said Jeffrey Stein CEO of Consumer Research Around Cannabis. The data reinforces some stereotypes of cannabis consumers, but also reveals some surprising findings.

As we continue to unveil the consumer economic behavioral secrets of cannabis users, we will provide the updates here on Green Market Report. In the meantime, consume wisely and spend responsibly!



About Us

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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