Legal Cannabis Market Expected to Hit $130 Million This 4/20

Cannabis-loving revelers haven’t traditionally been known for their restraint on April 20. So could it follow that marketers have taken a similar no-holds-barred approach to the revered weed holiday, perhaps overstating its importance on the cannabis calendar as the Super Bowl, July Fourth, New Year’s Eve and Black Friday of ganja all rolled into one? Apparently not, according to cannatech firm Akerna, which predicts that the legal market in the U.S. will rake in roughly $130 million on 4/20 this year, notching a 16% increase over 2021’s record-busting $111 million haul and becoming the largest sales day in history. In other words, believe the hype. Cannabis Brand Old Pal Taps Into Houseplant Trend for ‘Grow Your Own’ 4/20 Stunt For the six-day total—starting Friday the 15th through Wednesday, when discounts and promotions are at their peak—Akerna expects sales to climb to $400 million. For the sake of comparison, Akerna’s analysts looked at another set of just-released numbers—the sales of alcohol in Iowa in 2021, which coincidentally hit $400 million for the first time. “This means that the U.S. cannabis retail industry is predicted to bring in more sales in just six days than Iowa did for liquor sales in a record-breaking year,” per the Akerna report. The lure of price cuts and festive activations may bring consumers back to in-person shopping, even if they have developed a digital habit since 2020’s lockdown, industry watchers say. And visits to brick-and-mortar retail usually mean bigger baskets. “It’s like the infamous Target trip,” Jessica Billingsley, Akerna’s CEO, told Adweek, “where you go in to buy one thing and come out with 10.” If the price is right The holiday, with its origins in Northern California and Deadhead stoner culture of the 1970s, has become famous for its deals, with retail consistently slashing prices 65% more on 4/20 than on an average day, per Akerna. Consumers site “low price” as one of their top three influences in their product choice, per BDSA, as well as a top decider in shopping venue. “With Americans contending with higher prices for a wide range of other goods, from fuel to groceries, consumers are even more likely to take advantage of 4/20 promotions by stocking up,” per BDSA’s poll of consumers in 10 mature markets. Modern weed aficionados As more states have legalized cannabis—and U.S. residents have increasingly voiced their support for the industry—players in the space are diving further into research around the contemporary cannaseur, releasing results to coincide with the 4/20 hoopla. A new study from YouGov found that 1 in 5 Americans now qualify as “heavy users”—someone who consumes cannabis three times a week or more. And far from the tired stereotype about aimless, largely male wake-and-bakers, 43% of this weed-loving demo identifies as female, 54% are 35-55 years old and 55% are parents with children under 18. “And 60% of them don’t think of themselves as stoners,” according to Allison Disney, partner at Chicago-based Receptor Brands, which commissioned the report. “These consumers indicate they’re using cannabis weekly or daily for its functional benefits, such as relaxation or sleep, and many of them—especially parents of young children—stepped up their consumption within the last year.” The data might remind dispensaries, brands and delivery platforms to focus on legacy buyers at a time when canna-curious consumers have been stealing some marketing thunder, Disney said, because “we still have much to learn about the profiles, preferences and spending habits of heavy users.” Not just for dude bros Like a Surfside study that dropped in March, Akerna’s research anticipates a flower-centric holiday (accounting for 49% of sales), with men responsible for 61% of the buying on 4/20. The heaviest traffic will come from consumers 40 years old and younger, with 30- to 40-year-olds accounting for 31% of sales and those under 30 making up 30% of sales, Akerna says. Women and Gen Z, meantime, are becoming more attuned and responsive to the spring holiday, with Brightfield noting that 47% of female cannabis users are likely to take advantage of dispensary deals. Headset, tracking customers on April 20, 2021, found that sales to Gen Z jumped by 168% over the previous four weeks and sales to women increased by 140%. If that trend continues, the researcher thinks those demos will contribute significantly to a projected triple-digit leap in U.S. weed sales on Wednesday compared to the previous month. Gen Z’s canna-priorities Digging further into the young audience, insights group Cassandra reports that nearly 50% of surveyed Gen Zers plan to celebrate 4/20, with 78% saying society is more accepting of cannabis these days. This consumer group takes the relaxation use-case to the next level, saying they view weed “as a means of self-care,” according to Kathy Sheehan, senior vice president at Engine-owned Cassandra, who noted that 50% of Gen Z anticipates that “people into wellness and mental health” will actively consume cannabis products. The study, in partnership with cannabis brand Miss Grass, also found that the younger demos appreciate well-designed packaging and treat weed brands like any other category, with 1 in 4 saying they plan to invest in a cannabis brand or stock. They also think it’s “crucial to acknowledge the racist history of marijuana” and say brands need to step up on that issue. Gen Z “expects brands to address prior generations’ inequities related to cannabis,” according to Miss Grass founder and CEO Kate Miller. “Every brand, every leader, every executive working in this space—it is their responsibility to do what they can to right the wrongs of the war on drugs.” Luxury Cannabis Brand Riffs on Iconic Women-Centric Ads to Make a 4/20 Splash

Cannabis

Not Blowing Smoke: Legal Weed Market Is Expected to Hit $130 Million on 4/20

The six-day haul around the holiday could top $400 million, with women and Gen Z joining legacy buyers to drive record numbers

T.L. Stanley

About

Subscriptions

Events

Publications

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Subscribe today!

T.L. Stanley