The United States is becoming the land of red, white, and green. After Michigan joined the ranks of 10 other states and Washington, DC, to legalize weed, support for the legalization of cannabis is at an all-time high. A Gallup poll showed that 64% of Americans support legalization, and even many Republicans are for it. Cannabis Legalization Spurs Massive Interest in Marijuana Retail.
Cannabis Legalization Spurs Massive Interest in Marijuana Retail
And with the increasing support means that there will be an increase in marijuana retail, even more than seen in the past. Marijuana companies across the world are expected to earn more than $8 billion by the end of the year. In fact, spending on legal marijuana is expected to hit $57 billion by 2027. Edibles One of the most significant sectors of the marijuana market is cannabis edibles. With the increased use of edibles for both medical and recreational purposes, the sales are going to explode. One market report from Technetium predicts that the edible products market will see a massive increase of 25% by the end of 2022.
Thanks to the spreading legalization of marijuana, the market is expected to get even bigger. Joints Instead of rolling at home, people can buy their joints pre-rolled at a dispensary. Just like the rest of the industry, joints have seen a spike in popularity. Take GFarmaLabs in California. Before the company had four glow lights and a 3,000-square-foot canopy. Now, it has more than 700,000 square feet. All that extra square footage means more joints. Before, they could produce about 800-1000 pre-rolled joints. GFarmaLabs now uses a Futurola machine which automates the process and those two employees can now p Vape Pens More and more people are reaching for the vape pen when they want to indulge.
Their popularity has seen a shift from the more traditional glassware. In 2017, vape-related retail sales accounted for roughly $600,000 to $900,000 between March and May. However, during the same time frame, this year vape revenues were between $7 million and $10 million. Vape pens are more inconspicuous and generally less expensive than glass. Some dispensaries are even likely to give them away for free. You can also vape on the go, making it one of the most convenient options for using cannabis. Automation has also helped the vape pen retail industry. Before, small companies would fill cannabis oil cartridges for vaping by hand. It might take a company about an hour to fill 100 cartridges.
Now that the process involves automation, the same amount of cartridges can be filled in just 30 seconds. Danny Davis, a Managing Partner at Convection believes “The demand for machines is five times what it was from one year ago. We truly believe that the only way to scale is to add technology and standardization.” Glassware With the new kid on the block – vape pens – there has been a decrease in glassware use, but the market is still increasing. Glassware sales tend to see an increase in demand during the summer and spring months.
CBD Oil Marijuana
There is still a large consumer base that views cannabis smoking through more nostalgic eyes and wants to use the old school pipe rather than a vape pen. With the uptick of concentrates used, it doesn’t necessarily spell the end for glassware. However, it is changing its design and look and altering retail marketing strategies. Instead of buying a flower piece, people might want to buy a dab rig instead. CBD Oil Marijuana use has also spread into the retail health and wellness industry.
THC and CBD
Before, the best-known compound in cannabis was delta-9 tetrahydrocannabinol, or more commonly known as THC. It is the most active ingredient in marijuana. Marijuana contains both THC and CBD. CBD, cannabidiol is also seeing a rise in retail popularity. Even though it isn’t psychoactive and doesn’t change a Person’s state of mind when they use it, some research suggests that it does have medical benefits. CBD is in the form of candy or oil and is used for the treatment of epilepsy or pain. However, even though it does have a precarious legal status, it is expected to grow to $1.1 billion by 2020 and $1.8 billion by 2022.
With more and more people wanting to purchase cannabis and cannabis retail, we will see companies start to step up and change how and what they are selling to trend with the demand. If the industry is going to succeed, then the supply chain is going to have to grow. Growing facilities are getting bigger and bigger to meet this demand. As users start to drift towards new technology like vape pens, glassware will have to continue to evolve and grow as well. One thing is for certain: as more states legalize marijuana, retail vendors will be impacted by evolving retail marketing strategies that require ingenuity and the use of non-traditional marketing platforms.