retail sales Archives - Green Market Report

Kaitlin DomangueJuly 28, 2021
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Lollapalooza was cancelled last year due to the COVID-19 pandemic, but the famous music festival is back at Grant Park this year, starting tomorrow and ending on Sunday. Not only is this the festival’s first post-COVID comeback, after being canceled last year, but also the decades-old event’s first run since Illinois’ adult cannabis market took off in 2020. 

Chicago cannabis sales expected to increase as Lollapalooza kicks off tomorrow 

According to cannabis market research firm, BDSA, out-of-state travelers coming to Lollapalooza is expected to boost dispensary sales in Chicago. 

If you’re not familiar with the event, we’ll do our best to paint a picture of the massive music festival. Lollapalooza happens every year in Chicago, at Grant Park. In 2019, 400,000 people attended Lollapalooza, along with a few medical transports and arrests. Unfortunately, one person also died, which drew negative criticism towards the event’s safety protocols as another festival goer also died the year prior. Needless to say, the event brings a large crowd and plenty of room for cannabis sales to soar. 

Drug use is popular at Lollapalooza

Now that cannabis can be purchased legally in Illinois, one might wonder if the consumption of illegal, potentially unsafe drugs will decrease at the festival. The details surrounding the 2019 Lollapalooza death weren’t released, but the 2018 death of a 16-year-old was confirmed to be an overdose. Among the top five preferred drugs at Lollapalooza, alongside smoking cannabis and drinking alcohol, are MDMA, cocaine, and LSD, according to a survey conducted by global travel magazine, Time Out. One third of those surveyed have smoked cannabis in Grant Park, while more than 70% drank alcohol. 

Opt for vaping or eating edibles

Don’t let this give you any ideas. Smoking cannabis is prohibited per Grant Park’s rules, but more discrete methods of consumption like vaping and eating edibles will still be popular and play a major role at the festival. BDSA says 38% of consumers report taking cannabis gummies for their convenience. Just be mindful of the summer temperature! Gummies might melt into a jelly-filled mess or lose cannabinoids under extreme heat, so leave excess gummies at home or in your hotel room. 

Vape sales are likely to increase

Vape sales saw a small jump during Lollapalooza in 2019, with Friday, August 2nd, recording the highest dollar sales for vapes that month. Dispensaries in the River North and West Loop areas, like Sunnyside, Modern Cannabis (MOCA), and Dispensary 33 are likely to see the biggest growth in sales from the festival. 

According to BDSA, 30% of Illinois consumers take cannabis when going out or taking part in high-energy activities, while 36% of consumers say cannabis plays a role in celebrations or important events. 

Chicago’s sweet history 

You may or may not know Illinois’ Windy City, Chicago, has a rich candy making history. It’s been considered the “candy capital of the world” since the late 1800s. Iconic brands like Tootsie Rolls, Brach’s, Wrigley Gum, Fannie May, and Mars Candy all have Chicago roots. If they play their cards right, the city already has their foot in the cannabis edibles door. 

Chicago-based Cresco Labs is dominating the edibles market, churning out batches and batches of gummies and other cannabis edibles for Illinois dispensary shelves. It’s a good market to join. According to Chicago-based Brightfield Group, edibles made up 21% of cannabis sales last year, trailing behind consumers’ all-time favorite category: flower. The Brightfield Group predicts edibles will grow 20% annually through 2025, compared to flower growing 15% over the same period of time. The cannabis industry’s total sales are expected to reach $41 billion by 2026. 

Lollapalooza will be held starting tomorrow, July 29th, to Sunday, August 1st in Chicago’s Grant Park. Proof of vaccination or negative COVID test is required to attend. 


Kaitlin DomangueJune 29, 2021
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Cannabis software and intelligence company, Akerna (NASDAQ: KERN), released a new flash report this morning, predicting the 4th of July, 2021 to bring in over $206,000,000 in legal cannabis sales across the United States. 

With Connecticut being the most recent state to legalize, 38 states now have legislation permitting an adult-consumption and/or medical cannabis program. Not everyone has dispensaries up and running yet, so this data doesn’t reflect sales in all 38 legal states. 

2021 4th of July sales predictions

According to the flash report, historical data shows cannabis sales typically spike the weekend before the 4th and Friday, July 2nd is expected to retail nearly $91,000,0000 – up 60% from an average Friday. The report predicts July 2nd to be the second highest sales day of the year, just after 4/20. Saturday, July 3rd, is forecasted to generate $72,000,000 in cannabis sales, with Sunday, July 4th, expecting to see $43,000,0000. Sundays are typically the lowest sales day of the week when you look at historical data, but dispensaries will still see more sales than normal because it’s a holiday. 

“Year over year, we’ve seen a 23% increase in the number of products consumers and patients are purchasing for the 4th of July holiday weekend,” said James Ahrendt, Business Intelligence Architect at Akerna. “With the holiday falling on a Sunday this year, dispensaries should be evaluating staffing and preparing inventory ahead of the weekend to ensure they are ready to accommodate these increases in both traffic and sales.” 

Some other Independence Day weekend (7/02-7/04) sales predictions: 

Product Categories

  • The average order total will be $8 more than normal: $109 vs. $101 
  • Each basket will carry an average of 3.6 products per transaction

 

  • Flower will make up 49% of sales
  • Cartridges/pens will make up 31% of sales 
  • Concentrates will account for 10% of sales
  • Infused edibles will account for 9% of sales
  • Other products will make up 1% of sales

 

Demographics 

  • 61% of consumers will be male
  • 39% of consumers will be female 
  • 29% of consumers will be under the age of 30
  • 30-40 year olds will make up 31% of consumers
  • 20% of consumers will be between the age of 40 and 50
  • 50-60 year olds will account for 11% of consumers 
  • Consumers over the age of 60 will account for 9% of sales

Akerna regularly releases flash reports. Last year’s 4th of July report anticipated an 87% increase in sales over the 4th of July weekend, with Americans expected to spend more on cannabis than bbq meats. Historically, consumers spend more than $371 million on chicken during the two weeks leading up to July 4th, equalling about $37 million per day. Akerna predicted cannabis sales to reach over $260 million in just three days, generating about $86 million per day. 

Data for Akerna’s flash reports are provided by MJ Platform, a regulatory compliance technology company in the cannabis space. 


Kaitlin DomangueMay 28, 2021
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Memorial Day Weekend is host to hundreds of thousands of retail sales every single year. Around this time of year, you can’t turn on the tv, radio, open Facebook, or your email without some Memorial Day advertisements broadcasted your way. The cannabis industry is no different. The holiday weekend is a historically high sales day for the cannabis space. But according to BDSA, Memorial Day Weekend in 2021 will be unlike previous years and surpass year-over-year growth seen in 2020. 

Friday is the star of cannabis sales over Memorial Day Weekend

BDSA’s newly-released report about cannabis sales over the three day weekend predicts Fridays to be the best sales day between the Thursday, Friday, and Saturday before Memorial Day. Previously, the Friday before Memorial Day Weekend has been the highest cannabis sales day throughout the month of May, with inhalable consumption methods driving the holiday mania. 

This is likely because of the outdoor-type gatherings Memorial Day Weekend brings. Everyone is outside, lighting the BBQ grill, and apparently: smoking a lot of weed. BDSA says 50% of people consume for “daytime fun”, which is right in line with the festivities leading up to Memorial Day. 

Colorado to make up 25% of sales on Thursday and Sunday

Thursday and Saturday still draw a crowd, however. The report says Thursday, Friday, and Saturday will be blockbuster sales day in the cannabis industry and 25% of the growth seen on Friday and Saturday will be thanks to transactions in Colorado. 

According to cannabis enterprise software company Akerna’s flash report, Memorial Day Weekend will gross approximately $238,000,000 in recreational and medical marijuana sales over the four day period, Friday to Memorial Day on Monday. According to the report, consumers under the age of 40 will be driving 61% of cannabis sales. 

Like the BDSA report, Akerna predicts Friday to be the highest sales day of the weekend, grossing $85,000,000. If sales reach this number, it’s up 55% from average sales on the Friday before Memorial Day. 

Cannabis beverages are hot for summer

Many predicted cannabis beverages to surge in popularity in 2021. Edibles are already taking the industry by storm. Cannabis data analytics company, Headset, recently reported edibles grew by 60% across seven legal markets in the United States. This includes market share, according to Headset data analyst Cooper Ashley, who said they increased from 10.65% in 2019 to 11.07% of the market share in 2020. 

It’s possible cannabis beverages could be the product of the summer, filling backyard coolers and poolside drinks all summer long. We’ll find out after Memorial Day Weekend is over! 


Peggi CloughApril 19, 2018
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A recent study done by LeafLink predicts that this 4/20 will be the first ever to have retail sales top $1B, even reaching as high as $1.2B, based on their wholesale marketplace figures.

LeafLink, a B2B e-commerce marketplace for cannabis, used proprietary data and sales figures to predict sales for this 4/20 holiday. They also identified that buyers are purchasing branded products rather than regular cannabis for their 4/20 celebrations.

The study found that the buying patterns of cannabis companies around the 4/20 holiday actually benefit consumers. The market, especially the recreational one, is so competitive that there’s little room to raise prices, even at a time when there will be more sales. As long as new brands are popping up monthly, a particular product may have 10 other competitors in the same store, leading to near-saturation of some product markets.

March was in the top three ordering months for retailers on LeafLink last year—with purchases 14 percent larger than in average months. These orders were actually 24 percent larger than those placed in April. This shows most retailers were already prepping for 4/20 a month ahead of time. In March of both 2017 and 2018, LeafLink’s retailers in Colorado spent 50 percent more on LeafLink than they did in February. March 2018 saw over $29M in orders placed, with the online marketplace’s annual sales being $356M.

It’s not only retailers that are increasing their 4/20 supply. According to Flowhub, in 2017, total sales of cannabis by consumers on 4/20 represented a 44 percent increase from an average Thursday and 30 percent more than an average Friday. The number of people who checked into dispensaries on 4/20 increased by 40 percent from a typical Thursday and by 28 percent from a typical Friday. Flower was the top seller, with the equivalent of nearly 900,000 bowls sold.

This year, LeafLink created a “Cyber Monday” promotion on 3/20 to prepare for 4/20. They say people are driving from other states to purchase cannabis for the holiday, so competition to win over their business is aggressive. They discovered that retail dispensaries are eager to capitalize on 4/20. They buy in bulk, due to the industry’s banking restrictions that limit purchases they can make over time. Although other industries don’t have these constraints, cannabis companies have figured out how to work within them.

The Cyber Monday campaign was a success; products that were featured had an average increase of 31 percent over those not included in the special. Edibles were the biggest hit—some had more than double the orders over the previous week.

While LeafLink predicts 4/20 sales may peak someday, they don’t see that happening in the next five to 10 years. During this time, they foresee the month prior to 4/20 being the best time for sales, with people continuing to travel to recreational states for 4/20. They also believe the influx of new products and brands will remain high in the near future.

The 4/20 information and data provided by LeafLink can help cannabis retailers and companies by giving them a look at demands and buying patterns, not only of customers but also of the industry. The study shows that it’s worth the investment for cannabis companies to stock up on products in March to prepare for the 4/20 rush.

 


Debra BorchardtDecember 13, 2017
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The state of Colorado is now releasing sales data on marijuana transactions. Previously, the state only posted tax revenues, leaving researchers and journalists with guesswork as to how that translated into sales. So far, total sales through October have increased 42% year-over-year and tax revenues through November have increased 16%.

On Wednesday, the state released medical and retail sales data going back to January 2014, even though sales began prior to this date. Going forward, monthly reports will be published on the seventh business day of each month. The data is self-reported by the businesses and aren’t audited or use the Metrc tracking system.

“We know this information is highly desired by the general public, media, and researchers,” said Mike Hartman, executive director of the Colorado Department of Revenue (CDOR). “To that end, in our efforts to be as transparent as possible, we will now provide aggregate sales data. That, coupled with state tax revenue data already provided, will give an accurate picture of the financial footprint of this burgeoning industry.”

Marijuana Sales Reports

Calendar Year Total Marijuana Sales Total to Date
2014 $683,523,739 $683,523,739
2015 $995,591,255 $1,679,114,994
2016 $1,307,203,473 $2,986,318,467
2017 (Jan – Oct) $1,259,861,988 $4,246,180,455

Updated December 2017

Calendar year is defined as January 1 – December 31

 

The Department of Revenue also stated that the Office of Research and Analysis would produce monthly reports that would show the total sales for retail and medical marijuana by county. Plus, the ORA will calculate a cumulative total of actual sales figures from year-to-date and total sales per year. The sales reports will be posted on the same day as the tax reports.

Colorado changed its marijuana sales tax on July 1, 2017. Retail sales taxes rose from 10% to 15%. Retail products were exempt from sales tax on personal property. So far in 2017, the state has collected $226 million in total marijuana tax, license and fee revenues.

Marijuana Taxes, License, and Fee Revenue

Calendar Year Total Revenue
2014 $67,594,323
2015 $130,411,173
2016 $193,604,810
2017 (Jan-Nov) $226,157,028

Updated December 2017

Calendar year is defined as January 1 – December 31

 


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