headset Archives - Page 2 of 5 - Green Market Report

Julie AitchesonDecember 10, 2021
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5min3560

In the cannabis industry, branding (which includes packaging, product makeup and thoughtful analysis of the target consumer among other things) has proven to be a major factor in promoting customer loyalty across a wide range of products. Headset’s latest report, “Cannabis Brand Loyalty: A Look At California Vapor Pens”, leads off by invoking the archival image of a plastic baggy full of musty weed traded off in parking lots and clubs. But today’s cannabis product packaging runs the gamut from the utilitarian to the wildly creative. With the horizons of the cannabis market constantly expanding, it is crucial for companies to identify the ideal consumers for their products and how to market towards them for maximum profits. 

The report defines brand loyalty as the tendency of a customer to continue to purchase from one brand loyalty is the tendency of a customer to purchase from the same brand over time. To this end, using California Vapor Pen brands as a model (a product sector that sees a high amount of brand loyalty), Headset’s report investigates three different ways to measure brand loyalty. Using real-time sales reporting, Headset’s data comes directly from partner retailers. This specific report looks at purchase patterns (or how a customer shops over time) and uses the results to paint a picture of customer loyalty. The report is careful to note that both high and low brand loyalty have their merits, citing companies who have the goal of reaching new customers in the market as those with a deliberate low brand loyalty strategy that can still yield solid profits.

Chart provided by Headset

Headset’s first strategy for measuring brand loyalty was looking at repeat purchase rates or the percentage of customers that repurchase a brand in a set time period. In California, 45% of customers re-purchase their products after 6 months. 12.6% of these customers will only re-purchase from a particular brand while 32.6% will purchase other brands in addition to their previously chosen brand. The report highlights this as significant given that people have such varied tastes and there are so many products to choose from. STIIIZY and Plug Play two vape pen brands with markedly high brand loyalty hardware are highlighted here as they both have proprietary hardware that pushes customers to repurchase their brands. However, over 50% of both brands still purchase from other brands even if they have to purchase different batteries, reflecting the aforementioned desire for variety among consumers.

Next, the report measures brand loyalty by looking at switching behaviors, which is when a customer chooses to buy a product from a brand similar to the initial brand chosen. This is a valuable metric as it helps businesses understand their own brands, how they are perceived by their, who their greatest competitors are and why. Headset’s report looks at Legion of Bloom customers and what other brands they are purchasing. The analysis showed that nearly a quarter of Legion of Bloom’s customers purchased a STIIIZY product- valuable information for both brands when considering branding strategies and how to make themselves more competitive. 

Finally, the Headset report sought to measure brand loyalty by exploring wallet share across product categories, which is the percentage of a customer’s cannabis spending that goes towards a specific brand. Nearly 40% of the average Vapor Pen consumer’s wallet share is spent on their top brand, which reinforces the high rate of brand loyalty in this product category and may prompt vape pen brands to consider strategies like proprietary technologies to capitalize on this particular market dynamic.

 


Julie AitchesonDecember 2, 2021
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The numbers are in and it’s official—Green Wednesday 2021 was a big one for the cannabis industry, while Black Friday fizzled in comparison. Green Wednesday saw cannabis sales increase across the U.S. Black Friday did not have the sales growth seen in previous years, though some data (Flowhub) showed larger order values and bigger discounts than Green Wednesday. Data from market analytics and cannabis companies like Headset, LeafLink, Lantern, Glass House Brands, and others show common trends regarding most popular products and year-over-year sales numbers. Using this data, companies extrapolate some possible variables affecting this year’s numbers, including a decreased emphasis on Black Friday door-buster deals targeted towards packing stores with bargain-hungry shoppers, focusing instead on online sales spread out over the holiday season (Springbig).

Headset’s Green Wednesday 2021 data showed a 33% increase in total retail sales compared with the four previous Wednesdays, with a marked trend of customers taking advantage of promotions on offer to receive discounts on holiday shopping, with the average discount up 29 percent. This was in contrast to a slight decrease in sales (-4.6%) on Black Friday relative to the previous four Fridays, despite the fact that average Black Friday discounts increased by 56% from the previous four Fridays.

Flowhub’s data showed an average Green Wednesday discount of $9.57 (up from $8.94 in 2020) and an average Black Friday discount of $11.09. Notable in Flowhub’s findings was the conclusion that while Green Wednesday was a big sales day, Thanksgiving weekend as a whole had lower pre-tax sales than a typical Wednesday through Sunday. Jushi Holdings (OTC: JUSHF) didn’t seem to notice, however, experiencing its best online sales day in the company’s history on Green Wednesday 2021 with an 80% uptick in sales during Thanksgiving week and online ordering up 200% on Green Wednesday. Eaze saw a 135% increase in deliveries compared to a typical Wednesday in 2021, making it their second biggest day this year by both numbers of deliveries and sales after 04/20/21.

Edibles Most Popular For Green Wednesday

Headset’s data on category winners by sales numbers showed edibles leading the pack with 67% growth on Green Wednesday and 11% on Black Friday. Topicals and tinctures took second and third place while beverages saw a whopping 86% growth. Leaflink showed flower holding the top spot for most popular category in the month leading up to Green Wednesday making up 33% of sales with cartridges coming in second up 24.9% from the previous month. Jane Technologies saw its biggest category sales increases in edibles (94%), vapes (84%), and flower (73%) compared to the previous three Wednesdays, with chocolates and disposables leading subcategory sales by increases of 126% and 100% respectively. For Glass House Brands (OTC: GLASF), flower, carts, and edibles were the big winners.

LeafLink’s data measured the growth of sales (10.61%) during the month leading up to Green Wednesday compared to October, with the biggest sales increase (16%) coming during the week of November 14th over the previous week. The run-up to Green Wednesday broke records for cannabis company Lantern, with a 44% rise in average daily sales leading up to Green Wednesday, though there was no significant change to daily Average Order Value.  As the cannabis economy continues to transform to meet a shifting retail environment and shopping behaviors adaptive to these uncertain times, market analysts and retailers will continue to keep an eye on Green Wednesdays and Black Fridays to come as annual bellwethers for the market.

 


Debra BorchardtNovember 29, 2021
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A new report from Headset has found that Americans aren’t as into pre-rolls as Canadian consumers. Between August 2020 and August 2021, the market share of pre-rolls in Canada averaged 18.6%, while in the US, the market share of pre-rolls only averaged 9.5%. The only exception it seems is the Massachusetts market. Apparently, they really like pre-rolls in that state. 

Cooper Ashley Senior Data Analyst at Headset said he could think of two reasons that could partly explain why the pre-roll market share is higher in Canada than in the US.
  • Firstly, PreRolls were one of the few product formats that have been available since the beginning of Canada’s cannabis market. A regulation change, dubbed ‘Cannabis 2.0’, allowed previously-prohibited product formats (such as vapor pens, edibles, and concentrates) to be sold in Canadian cannabis retailers at the beginning of 2020 – more than a year after the market originally launched. Most product categories that were introduced in ‘Cannabis 2.0’ still have significantly lower market shares in Canada than in the US. For example, over the previous 90 days, edibles made up about 11% of sales in the US, but only 5% of sales in Canada.
  • Secondly, Canadian Pre-Roll products tend to be larger. By that, I mean that there tends to be more total cannabis in a single Canadian pre-roll product than in a US pre-roll product. For example, over the previous 90 days the highest volume package size of pre-roll in the US was 1g, but 1.5g in Canada. A tendency towards larger package sizes unsurprisingly pushes up the average price of these products as well. Eg. Over the previous 90 days the average price of a pre-roll product was about $11 in the US and about $18 in Canada. That difference in size and price could cause consumers to think of a pre-roll more as a primary purchase, rather than a low-cost add-on item.

When Americans want to buy pre-rolls, they typically choose the connoisseur/infused segment, which makes up 32.4% of sales. Canadians aren’t as picky and this same segment makes up only 0.1% of sales. Pricing is a possible reason for the large difference in Connoisseur/Infused market share between the two countries. In Canada, they are priced 57% higher than the average item price of the other segments, while in the US they are priced only 18% higher than the other segments.

However, pricing might not be the only reason that Americans are choosing the infused joints.  Andrew DeAngelo, Cannabis Industry Consultant, and Strategic Advisor said, “The quality of legal cannabis in the U.S is better in full flower form not in pre-roll form motivating consumers to roll their own rather than getting a subpar pre-roll.”

Scott Grossman, Vice President of Corporate Development at Turning Point Brands (NASDAQ: TPB) (maker of ZigZag rolling papers) agrees with DeAngelo on the perceived quality of cannabis in pre-rolls. He said, “In the U.S., the old pre-rolls were historically viewed as a lower quality flower which may have capped sales—in addition, these items are typically additions to the basket versus the main intent of purchase.” Grossman thinks that Americans prefer to roll their own so that they can control the quality of the product. Despite that, he thinks the perception is slowly changing. 

Innovation

“Companies like Old Pal, Space Coyote, etc. have innovated to create shareable pre-roll packs which make a lot of sense, especially during the pandemic—no one wants to pass around a single joint,” said Grossman.”Nearly 30% of the U.S. pre-roll market is driven by infused pre-rolls—ie. flower either dipped in Kief, but more recently, pre-rolls with hash concentrates within (a better form factor).” 

More companies are producing mini-pre-roll packages so that people can have the social aspect of smoking joints together but without the passing around of a joint. The smaller size also means fewer unsmoked joints that the consumer now has to store without it falling apart or making a mess. For example, Green Thumb Industries (OTC: GTBIF) sells a package of five mini-pre-rolls called Dogwalkers. The idea is that the little joint is small enough to be enjoyed walking one’s dog. 

Cones could be another reason why Americans are rolling their own versus buying pre-rolls. The innovation of selling a cone-shaped empty joint with a small plunger to tamp down dry herb can turn those without joint-rolling skills into a master. Grossman said, “Without question for the consumer. Not only does it make it easier to roll, but new innovation at the cultivation/manufacturing facilities allows the production of pre-rolls at scale (which, to be clear, is still much more labor-intensive than tubes). In addition, a conical joint versus a straight tube/joint actually makes the burn better due to the “Venturi Effect” — because there’s more material on top, it produces a more consistent flavor because you’re burning more in the beginning (and less in the end). This creates less resin and because of increased pressure, it tends to burn smoother. Punchline—a more concentrated hit. Cones also tend to produce less waste (because there is less material near the tip).”

Joint burning performance is also a key issue for these consumers. DeAngelo said that rolling joints at home avoids the joint running problem (burning unevenly) associated with almost all store-bought joints in the US. “A joint that is stuffed by a machine runs like crazy compared to a joint rolled by hand. The way the fibers intertwine works better with a hand roll so the joint burns evenly. Americans are more sensitive to this perhaps. I know I am.” 

More Pre-Roll Differences

Headset also determined in its report that market shares of the Indica and Sativa Single Strain segments in Canada were more than double the size of their market share in the U.S. where Hybrid – Single Strain has more category share than Indica and Sativa combined. “We also find that the Cannagars/Blunts segment owned 4.2% of the Pre-Roll market in the US, while it only held 0.1% within Canada. 

While Americans haven’t been big buyers of pre-rolls to date, that could be changing. It seems companies have learned that tossing the crummy trim into a pre-roll isn’t going to sell. Social media accounts have shown various people buying these pre-rolls and then unwrapping them on camera to expose the insides. That exposure may have turned the tide on poor-quality pre-rolls. As consumers spread the word of an improved product, sales are likely to grow and could make this an improving category.

 


Julie AitchesonSeptember 21, 2021
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Cannabis data and analytics specialist Headset just released its latest report comparing US medical and recreational cannabis market development, bearing results that reveal sales patterns and unifying trends across the industry.  The report’s findings are grounded in the context of the predominant pattern of a three-step process in cannabis market development, including prohibition, medical access, and adult-use legalization. 

Though there are exceptions to this evolution where markets leapfrog medical use and go straight from cannabis prohibition to adult-use legalization, flagship states like California, which approved medical use in 1996 but took another twenty years to allow adult-use cannabis, follow a more predictable pattern. The report compares California’s slower rollout to Illinois accelerated process, evident in its shorter six-year span between medical and recreational legalization. 

The Medical To Rec Jump

Due to the time-tested predictability of this market pattern, industry analysts are using it to make sense of the past, paint a clearer picture of the present, and forecast future sales patterns in states such as New York, New Jersey, and Montana, which will all be transitioning to recreational use this year. Headset’s report also looks at cannabis markets in Illinois and Michigan, which made the medical-to-recreational transition fairly recently, and Colorado and Oregon, which jumped on that bandwagon much sooner. Overall, analytics show significant growth when markets first transition to adult-use, as illustrated by Illinois’ 226% gain in the period between the January 2020 launch of their recreational market to July 2021. Michigan’s recreational use program may have had a more sluggish start, but its total adult-use sales still saw a whopping increase of 1077% over the same period.

The impact of adult-use legalization on the medical market is less predictable and more state-specific. While Illinois medical use sales initially held steady once adult-use legalization passed, Michigan saw 75% growth in medical sales between January 2020 and July 2021. Still, the proportion of total cannabis sales to medical patients in Michigan has steadily declined since the introduction of the recreational market, and Illinois saw a steady decline over the first quarter resulting in an all-time low of 20.9% in July 2021. However, Colorado and Oregon, two of the most mature recreational markets in the country, offer some evidence that adult-use legalization is not necessarily a death knell for medical use. Oregon’s medical sales have held steady at 8-12% since the beginning of 2020 with Colorado topping that over the previous twelve months at between 18-20%.

Medical Patients Spend More

Buying behavior differences between recreational and medical use consumers can impact the market as well. Headset data shows that medical consumers tend to purchase more product at one time (a metric they refer to as “basket size”) than recreational consumers, giving Oregon as a prime example, where pre-tax average basket size for medical patients over a 90 day period was a staggering 99% larger than that of recreational use customers. Consumer differences carried over into preferred consumables as well, with medical patients trending higher in concentrate consumption versus the recreational user predilection for edibles and pre-rolls. 

In the end, lower taxes, higher potency THC products and more knowledgeable staff and sales experience give the medical use market enough of an edge that it shows some promise of holding its own, even with the advent of adult-use legalization. Given the astronomical growth spurt of new adult-use markets, however, Headset’s latest findings suggest that medical cannabis will be lucky to maintain its ten to twenty percent of total market share.

 


Debra BorchardtSeptember 8, 2021
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Cannabis consumers flocked to dispensaries on the Friday of this past Labor Day weekend resulting in the third-largest day for cannabis sales in 2021. Unfortunately, that was the only good news for cannabis retail. Overall, sales dropped in 2021 versus 2020 for the last weekend of summer. Analytics firms Headset and Flowhub both reported that sales dropped for the regions they cover. While  LeafLink the B2B wholesale e-commerce marketplace company saw an early jump in orders for the holiday, orders seemed to taper off as the weekend got closer.

Headset

According to cannabis data and analytics company Headset, Labor Day weekend (Friday 9/3 through Monday 9/6) actually saw a slight decrease (-3.2%) in average daily sales in comparison to the previous four weekends. On a positive note, though on Friday 9/3/21 alone, we see a different story. Sales on September 3rd, 2021 were up 10.3% over the previous four Fridays and drove this day to be the third-largest day of total US cannabis sales so far this year. All data for the US is from the following markets: CA, CO, MI, NV, OR, PA, WA.

Beverages For The Win

Headset said that for the full holiday weekend, the only categories to see sales growth over the previous four weekends were Beverages (+8.4%) and Edibles (+4.2%). “When we look at only Friday, September 3rd instead, all categories saw positive growth with Edibles (+15.1%), Capsules (+13.3%), and Vapor Pens (+11.2%). The category with the lowest sales lift was Concentrate with +2.8% growth over the previous four Fridays.”

Coupon Clippers

Dispensaries must’ve had an inkling that sales might be down because there was a slight increase in discounting over the entire holiday weekend. Headset said that the average discount over Labor Day Weekend 2021 was 13.7%, up from 12.3% over the previous four weekends – a relative increase of 11.8%. While Friday, September 3rd was the highest sales day of the weekend, Labor Day itself (Monday 9/6) had the highest average discounts of 15.1%, up 27% over the previous four Mondays. 

LeafLink 

On the wholesale side of the business, it seems dispensaries were planning ahead for a busy holiday. LeafLink said that sales increased 4.33% during the month leading up to the 2021 Labor Day holiday versus a 2.39% increase across the same period in 2020. Leaflink also said that the most significant GMV (gross merchandise value) percentage increase came during the week of 8/15, increasing 4.5% over the previous. Sales then leveled off for the rest of the weeks leading up to Labor Day.

Leaflink outlined the category demand as follows for the holiday:

  • Flower remained the most popular category in the month leading up to Labor Day, driving 36.33% of GMV compared to 35% of GMV in the month prior to Labor Day 2020 and 35.37% in the previous month. 
  • The second most popular product category leading up to Labor Day 2021 was Cartridges, which made up 22.29% of GMV (about a 1% increase over the previous month). This is a slight drop over 2020 when Cartridges made up 24% of GMV in the month before Labor Day. 
  • Flower saw significant growth during the week of 8/15, increasing 23% in GMV compared to the week before then grew another 9.9% in the following week. This could signify an increase in dispensaries stocking up on Flower in advance of Labor Day 2021. 
  • Packaged Flower was the most popular subcategory, making up 17.47% of total GMV in the month before Labor Day, with Bulk Flower coming in second at 16.29%

The most popular products in the month leading up to Labor Day in 2021 were: Slurricane Packaged Flower – MUV (FL) 

Gelato Cake Packaged Flower – District Cannabis (MD) 

Wedding Cake Packaged Flower – Pacific Stone (CA) 

Blueberry Indica Gummies – MUV (FL) 

Moon Rocks Concentrates – UBaked (MI) 

The most popular Cartridges in the month leading up to Labor Day 2021 were: Biscotti – Platinum Vape (MI) 

Sour Jack – MUV (FL) 

Double Bear Honey Cart – Terrapin (PA) 

Pink Lemonade – MUV (FL) 

Pie Driver – Platinum Vape (MI) 

Flowhub 

Flowhub provides point-of-sale, inventory, and other dispensary analytics. That company found that on average, Labor Day normally outperforms the typical Monday by 17-27%. Unfortunately, Flowhub’s data agreed with Headset as this year’s Labor Day 2021 was right on par with (actually slightly less than) a typical Monday. Flowhub said that there didn’t appear to be any holiday bumps in sales or transactions for Labor Day Monday and sales dropped by 9% versus the 2020 holiday.

Maybe the pandemic lockdowns of 2020 caused consumers to buy more last year? Labor Day’s Monday 2020 sales increased around 10% versus 2019. Just one year later as more people were able to get out and return to a less restrictive lifestyle, Labor Day weekend sales dropped 35% compared to 2020. On average, Labor Day weekend outperforms the typical (median) weekend by 15-21%. Flowhub said that Labor Day weekend 2021 sales were 27% less than sales on a typical summer weekend.


Debra BorchardtAugust 24, 2021
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Michigan is on fire when it comes to cannabis sales. While the state is relatively new to legal adult use sales, the market is quickly becoming a force to reckon with. A new report issued by cannabis data collection firm Headset digs deeply into where the sales are coming from and what Michigan consumers like the most.

Watch Out Colorado

Headset noted that from January to July 2021, Michigan has recorded $970.4 million in sales, exceeding both Washington and Oregon markets. Michigan is only $145 million behind Colorado. At this rate, Michigan could give Colorado  run for its money. Headset said that adult-use sales continue to grow at an average of 10% month over month. In May, Michigan’s cannabis sales ($148.9M) were less than $8.5 million short of overtaking Colorado’s sales ($157.2.7M)

Chart provided by Headset

“When we break down Michigan’s medical and adult-use cannabis markets, we find that in January, Michigan’s medical sales made up 38% of total sales but decreased to 27% of sales in July.” The report did caution that growth in both portions of the market were slowing down slightly. That could be a sign that the market is beginning to stabilize. Headset also pointed out that Michigan is following the same month over month growth as other more mature markets.

Michiganders Love Edibles

Like most cannabis markets, flower is the top category for consumers. Michigan flower represents 50% of the market share, second only to Nevada where flower takes a 55% market share. Vape pens are second place taking 19% of the market share. However edibles are the big category winner in the state. Edibles have captured a 13.8% market share – the most of any state. The state’s cannabis consumers are less inclined to buy pre-rolls and concentrates. 

Headset wrote that California has sold more edibles so far in 2021 than Colorado and Michigan combined. However, Michigan has sold more edibles than Colorado by 416K so far this year. “Michigan is selling their Edibles at an average item price of $14.48, which is 11% lower than California’s average item price of $16.23.”

While gummies are usually the biggest edible winner in most states, Michigan consumers actually have a high preference for Caramels, Chews, and Taffy. Gummies do command 71% of the state’s edible sales, but 10% of the sales to go to the “chews” category. By comparison, only 5.8% of the California market goes to the “chews” category and in Colorado only 5.6%. 

 

 


StaffMay 3, 2021
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Cannabis data firm Headset has raised $1.825M in a round led by Silverleaf Venture Partners, a private equity investment manager. the company said that this additional funding will accelerate expansion into legal markets and support new opportunities across the growing cannabis industry. Headset said it will deploy capital which will allow the company to quickly expand its market intelligence platform.

“The cannabis industry continues to expand at a significant rate, with new markets legalizing faster than ever before,” said Cy Scott, CEO, and Co-Founder of Headset. “With this new round of capital, Headset can better support these emerging markets while continuing to deliver the innovative analytics Headset is known for.”

Since its launch in 2015, Headset has been the leader in powering advanced and unparalleled analytics services for growing customer bases within cannabis, supporting retailers and dispensaries in over thirty territories, with market projections in the U.S. and Canada. They continue to elevate the caliber of the cannabis industry providing precise data-driven insights to brands, dispensaries, retailers, and organizations in the financial services and consumer packaged goods sector.

Other participating investors are WGD Capital, L.P., a cannabis-focused venture fund, and Poseidon, a leading investor in the legal cannabis and hemp industries. Poseidon was founded by Emily & Morgan Paxhia in 2013, making their first fund one of the longest-running dedicated cannabis investment funds.

“We are thrilled to be investing with the industry’s leading market intelligence platform,” said Douglas Hannah, Co-Founder of Silverleaf Venture Partners. “Silverleaf’s brand and dispensary partners consistently advised us that Headset’s information was clear and accurate, which gave managers confidence in making key business decisions.”

“As a former Chief Technology Officer, I can confidently say that Headset’s platform is unrivaled in any industry,” said Andre Haroche, Co-Founder of Silverleaf Venture Partners. “What CTO Scott Vickers and the Headset team have achieved is truly remarkable; they have created usable, actionable information from an entire industry’s data-set in real time.”


StaffApril 27, 2021
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Pennsylvania has only legalized medical marijuana, but the numbers make it look as if it is adult use cannabis driving the sales. Cannabis data company Headset recently expanded its reach into Pennsylvania and published its first full market report based on consumer insights and real-time market data. The report found that over the past twelve months, Pennsylvania’s medical cannabis sales have escalated, and between April 2020 and March 2021Pennsylvania’s medical markets brought in $909.4 million. Medical sales grew 120% in the first quarter of 2021 to $267.8 million from last year’s $121.5 million for the same time period.

The report also determined that Pennsylvania stands out among other U.S. markets with the largest average basket sizes so far this year, at $123.88 per basket. In addition, Pennsylvania’s average basket size was 2x as high as Michigan’s and 1.5x as high as Oregon’s.

“With close to $1B in sales in the last 12 months and growing at an incredible pace, we are thrilled to bring unprecedented insight into this exciting market, ” said Cy Scott, Founder and CEO of Headset. “As cannabis operators continue to make significant investments into Pennsylvania having access to extensive analysis, forecasts and a comprehensive understanding of this complex market as it continues to grow will be critical to success.”

Provided by Headset

Flower Is The Winner

Like most cannabis consumers, flower is the form factor of choice – despite being medical patients. It is even growing in market share. Flower was 38% of the market in March 2020 and is now 45% as of march 2021. Vape pens have dropped in market share, but still remain in second place taking 35% of the market. Concentrates had the highest average item price at $61, and tinctures, flower and vapor pens followed closely behind with an average item price of more than $50.

Legalization Outlook

Pennsylvania is the 5th largest state by population and is expected to be a big market with rapid growth. A new survey from Muhlenberg College’s annual public health poll found residents want full legalization.

“The trend on public support for legalization of marijuana in Pennsylvania is clear, with support growing for the eighth year in a row,” Chris Borick, director of the college’s Institute of Public Opinion, said in a statement accompanying the survey results. “As the state government considers this policy option, the public is increasingly coming to the conclusion that they support legalization.” A record level (58%) of adult Pennsylvanians support the legalization of marijuana in the Commonwealth, marking the 8th consecutive wave of this survey that support for legalization has increased in the state.

 


StaffDecember 4, 2020
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Data from both Akerna (Nasdaq: KERN) and Headset agreed that Green Wednesday (the day before Thanksgiving) sales in 2020 easily beat Black Friday sales for the first time. Cannabis consumers clearly wanted to make their purchases in advance of Thanksgiving and were less inclined to go shopping afterward.  

Business intelligence from Akerna found that cannabis consumers spent approximately $238 million during the 2020 Thanksgiving weekend (11/25 – 11/28).  Green Wednesday was the single biggest sales day of 2020 with an 80% increase in daily sales. The average basket size for medical consumers was $122.64, representing a 5% increase over the daily average. Adult-use consumers spent, on average, $78.14, which is an increase of approximately 12%. 

This also marks the first time in four years that Green Wednesday has beat out Black Friday, which also saw a 75% increase in sales. 

“Once again, Thanksgiving ranks in the top 5 cannabis sales days of the year,” said James Ahrendt, Business Intelligence Architect, Akerna. “As we have noted throughout the year, daily sales averages have increased over the last year as a result of COVID. Since average days show such notable year-over-year growth, the percentage of growth during the holidays doesn’t seem as large. However, this is because more people, in general, are purchasing cannabis.”

Additional Insights

Sales by Product Category

  • Flower – 46.8%
  • Cartridge/Pens – 30.2% 
  • Concentrates – 13.9%
  • Infused Edibles – 7.4%
  • Other – 1.7%

Sales by Age Group

  • Under 30 – 29.2%
  • 30-40 –30.6%
  • 50 – 19.3%
  • 50-60 –11.9%
  • Over 60 – 9%

Sales by Gender

  • Female – 36.7% 
  • Male – 63.3% 

Headset Green Wednesday 

Here are the sales totals across all Headset Insights Premium Markets for Green Wednesday, Thanksgiving, and Black Friday 2020, plus the relative growth over last year’s totals for the same days:

 

Total Sales (CA, CO, NV, OR, WA)

  2019 2020 YoY Growth
Green Wednesday $29.4M $33.2M 12.9%
Thanksgiving $9.7M $11.2M 15.2%
Black Friday $31.4M $31.1M -0.9%

 

Headset noted that that overall sales increased this year on Green Wednesday and Thanksgiving, but sales on Black Friday were actually slightly lower this year than last year. The company said, “This is big news because this would be the first time we’ve seen a year-over-year decrease in such an important retail holiday in cannabis.”

Also very notable, this is the first time that total sales have been higher on Green Wednesday than on Black Friday. Headset fans may remember that data analyst Cooper Ashley predicted this in his recent interview on Cheddar TV. “

 

Sales Increase vs Previous 4 Weeks

  2019 Sales Lift 2020 Sales Lift
Green Wednesday 59.5% 40.2%
Black Friday 16.3% -4.7%

 

“Here we can see that this year both holidays had less of an increase in sales versus the previous four weeks. Green Wednesday’s relative increase dropped from around 60% last year to 40% this year, whereas Black Friday had 16% growth in 2019 and actually had about 5% fewer sales in 2020 versus the previous four Fridays. Both of these decreases could be related to the recent uptick in COVID-19 cases and increased lockdown measures in many recreational cannabis states.

 And lastly, we can see that on both holidays average basket size was much larger in 2020 than in 2019, which is something we’ve seen throughout the COVID-19 pandemic.”

 

Basket Size

Date  2019 2020 Growth
Green Wednesday $38.84 $48.38 25%
Black Friday $41.85 $50.56 21%

StaffNovember 25, 2020
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6min820
Predictions for 2020
Headset

Headset forecasts an even larger than usual uptick in recreational cannabis sales on Green Wednesday this year for several reasons:

–  In all adult use cannabis states tracked by Headset, the total market has grown by at least 20% in total revenue over last year (when comparing October 2019 to October 2020).

– During the COVID-19 pandemic we have seen significant changes in consumer behavior. In March and April 2020, when many states were enforcing stay-at-home orders, the cannabis market saw a decrease in total transaction volume, but a significant increase in average basket size. This makes sense because customers were likely trying to minimize their trips to the dispensary, so they bought more per trip.Through the summer and into Autumn, average baskets have stayed significantly higher than they were pre-COVID, but transaction volume has crept back up to nearly the same level it was at in February. These two trends combined indicate a ‘new normal’ in the cannabis industry driving the highest monthly revenue totals since the beginning of the legal sales.
– Additionally, with many states reinstating COVID-19 lockdown measures, and advising against travel and social get togethers, Thanksgiving 2020 will be unlike any in living memory. With millions of Americans being asked to stay at home for the holiday, frankly, what else is there to do?
– Edibles have performed well throughout the COVID-19 pandemic. That along with their usual strong sales lifts during the holiday season leads us to predict Edibles and Beverages to again be the categories with the biggest sales lifts on Green Wednesday this year. Both product formats are conducive to indoor consumption (for those that don’t want to smoke or vape in their homes), and THC infused Beverages are often associated with celebration, as they are increasingly seen as a substitute for alcoholic beverages.
Akerna

“On average, Thanksgiving tends to be one of the Top 5 sales holidays of the year, and we expect that trend to continue this year,” said James Ahrendt, Business Intelligence Architect, Akerna (NASDAQ: KERN). “In the past, we’ve seen huge spikes in sales on Wednesday and Friday since most dispensaries are closed on Thursdays.”

Akerna anticipates that the average order total will be around $82.30 for adult-use customers and $128.46 for medical consumers, representing an increase of approximately $13 compared to the average order total on any other given day of the year.

Additional Thanksgiving Holiday Predictions:

Sales by product type:

  • Flower – 42%

  • Cartridge/Pens – 37%

  • Concentrates – 11%

  • Infused Edibles – 8%

  • Other – 2%

Sales by Gender

  • Male – 64%

  • Female – 36%

Sales by age group:

  • Under 30 – 28%

  • 30-40 –30%

  • 40-50 – 19%

  • 50-60 –12%

  • Over 60 – 11%

LeafLink
The cannabis industry, as measured by cumulative wholesale transaction volume growth through the LeafLink marketplace, increased by 40% between the start of the pandemic in March and October 2020. Overall, cumulative wholesale transaction volume is up 60% through the end of October compared to the start of the year, and we expect the growth trend to remain healthy through the end of the year. – Alex Feldman, General Manager of LeafLink Insights

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