Better understand the cannabis consumer to anticipate their needs.
- The market comprises consumers who legally consume medical marijuana (MM) either for medical use as they have a qualifying medical condition or for adult/recreational use.
- The businesses supplying this market comprise; producers, processors, dispensaries and retail stores, as well as ancillary services (cultivation, testing, training, insurance, security…)
- The US national legal marijuana market has an estimated value in 2013 of $1.4bn.*
- This is projected to increase by 64% in 2014 to $2.3bn.
- The 5 year valuation rises to $10.2bn.
- The illicit market is estimated at $18bn+
What does the future hold for cannabis?
- Alternative ingestion methods: vaporisation, edibles, tablets, tinctures, topical treatments
- Muti-state expansion: post federal legalisation it is expected that national brands will emerge.
- Licensing: businesses may not own a mm business in another state but may earn income from IP fees.
- Extraction products: concentrates made through extracting marijuana oil are popular and profitable. Increase in investment in oil product companies and ancillary equipment producers.
- Rising trim prices: due to growth in alternative ingestion formats, possible undersupply of oil.
- Larger scale production facilities: driven by market growth and limited numbers of licences.
- High demand for Cannabidiol (CBD): due to medicinal qualities and non pyschoactive properties.
- Cannatourism: travel to Colorado/Washington State to legally purchase marijuana.
- New buyer demographics: i.e. older patients seeking symptom relief
- Growth in ancillary industries: insurance, IT, security, packaging, consultancy – across State lines.
- Consumer information services: effects of strains, retailer locations, reviews, guidance (Leafly).
- Cannabusiness education: schools hosting seminars and offering info and resources.
- Access to banking services: as adult use/mm licences expand options for finance open up.