StaffJanuary 3, 2023
Cann offers “social tonics” in trendy flavors with only 2 milligrams-5 milligrams per can. It was hot on the trend of microdosing cannabis when it hit California shelves in 2019.
However, the brand has been able to gain more awareness in less saturated markets it’s entered – such as Illinois – than in its home-state’s market.
Source: Brightfield Group, U.S. Cannabis Product Brand Health, Q3 2022
John SchroyerNovember 28, 2022
Among the smallest of cannabis product niches are infused beverages, a sector that garners just over 1% of the entire U.S. marijuana market as the sixth most popular product category, compared to flower, which holds the lion’s share of consumer loyalty with over 40% of product sales and is easily the most popular category.
At the same time, the infused beverage market is one of the fastest-growing sub-categories of marijuana products, Seattle-based data firm Headset found in a new industry report that highlighted “triple-digit year over year growth” in Michigan, one of the newest U.S. recreational markets.
“Beverages have the potential to attract new consumer groups who may not tend to purchase the traditional inhalable product categories. There is a lot of opportunity in cannabis beverages, especially during a time when people are drinking less alcohol, particularly in the U.S.,” Headset reported. “Keep an eye on the category as it continues to grow.”
The report cited industry data from both Canada and several U.S. state markets, which found an ongoing boom in cannabis beverage brands and products, but decidedly mixed results when it came to sales since early last year.
“Since January 2021, the Canadian market has seen a 300% increase in brands. Beverage brands grew 65% in the US over the same time period,” the report found. “This flood of new brands and products into the market could be exceeding demand and contributing to price compression within the category.”
Headset found that infused drinks sales grew by a whopping 272% year-over-year in Michigan for the first 10 months of 2022, and also grew by double digits in Massachusetts, Washington state, California, and a number of Canadian provinces including Ontario, British Columbia, and Saskatchewan.
But cannabis beverage sales also dropped during the same timeframe in other markets, including Nevada, Maryland, Colorado, and Oregon, with the biggest drop coming in Nevada, with a year-over-year decline of 21% in sales for the first 10 months of the year. Beverage sales were about flat in Arizona and Illinois, the report found.
The number of cannabis beverage brands in the U.S. may also have hit a peak already, Headset found: In January 2021, there were 111, and that shot up to 199 in mid-2022, before dropping to 183 as of October. That’s accompanied by a steady drop in product prices,
“Consumer demand for Beverages may be slowing down in the US, which may explain the brand decline we are seeing,” Headset reported.
The report also found that consumers “seem to gravitate towards the higher dose packages in the US,” noting that “half of all beverage sales go to the 100 mg per package category, similar to what we see with edibles.”
“This is likely due to the higher value; more THC for a lower price point is hard to beat,” Headset reported.
The report was overall bullish on the beverage sector, however, and noted in its highlights that infused drinks as a niche has garnered 40% more market share in both the U.S. and Canada since January 2021.
StaffJuly 17, 2018
So far, 2018 has been a huge year for the cannabis industry; but where is it all heading? In AxisWire’s 2018 Cannabis Trend Report, we take a look at some of the biggest developments in the cannabis industry so far this year and provide insight as to where the market trends suggest they will be headed.
Here’s a sneak peak:
Women in Cannabis
Women are gaining greater ground in the cannabis industry. Women hold approximately 27% of C-Suite level positions in the cannabis industry. The last year has seen an explosion of industry organizations dedicated to advancing women in the industry, like IPW and Women Grow. There is also a growing number of women-owned cannabis brands, like Garden Society, as well as brands marketing specifically to women, such as Whoopi & Maya.
Cannabis Stocks
Bolstered by legal cannabis in Canada and by increasingly impotent federal enforcement in the United States, the number of cannabis companies going public is on the rise. Companies like Canopy Growth and Cronos Group have gone public on the New York Stock Exchange and NASDAQ, respectively. Additionally, several US companies are gearing up to go public in Canada; including Acreage Holdings, Dixie Brands Inc., and MJIC Inc.
AgTech
Agricultural technology in the cannabis industry is set to see some big changes. Cannabis giants like Aurora and Canopy are starting to build massive grow operations and as such as are looking for ways to increase efficiency and reduce costs. Cannabis growers are beginning to favor CMH lighting over LEDs and HPS lighting, primarily due to its low costs and high Color Rendering Index Score. Automation is also an avenue that cultivators are exploring to reduce costs, including cannabis trimming robots.
Welcome to Hollyweed
Hollywood is slowly becoming more comfortable with its relationship with cannabis. Encouraged by recreational cannabis becoming legal in California, there has been an upswell of celebrity cannabis brands; such as Montel Williams’ Lentiv. Likewise, there has been an increase in cannabis-related television shows, and award shows like the Academy Awards have started allowing cannabis gift bags.
Infused Cannabis Beverages
Beverages infused with cannabis stand to be the next big thing in the industry. Several large beer companies have already expressed interest in making craft cannabis beverages; including the brewing company Lagunitas. Independent cannabis companies have also begun to branch out into the world of cannabis beverages; including a number of cannabis-based wines, such as the new luxury brand coming to market SAKA.
Blockchain and Cryptocurrency
Like other industries, cannabis has fallen head over heels for cryptocurrencies and blockchain. Due to the disconnect between state and federal cannabis laws, some companies have resorted to launching Initial Coin Offerings as a way to raise money. Additionally, larger cannabis companies have begun to develop blockchain-based software systems to help manage seed-to-sale tracking as well as point-of-sale technology.
International Trade
Cannabis’ newfound legality in Canada has led several cannabis companies to seek out international markets. A lack of infrastructure in medical cannabis markets, such as Germany, have presented an opportunity for cannabis companies to gain some short-term profit and some long-term benefits. By setting up in developing markets, larger cannabis companies have the chance to establish a footprint before local businesses even get off the ground.
Music Industry & Cannabis
A growing number of famous musicians are starting to stake a claim in the cannabis industry. Legends like Snoop Dogg and Willie Nelson have launched their own cannabis brands, and business savvy rock stars like Gene Simmons have started to make investments in this growing industry. Some aspiring musicians are also hoping to make a name for themselves by using cannabis itself to spread awareness of their music.
You can download the 2018 Cannabis Trend Report for free by clicking here.
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