PALM BEACH, Fla.—The global health crisis has increased sales of cannabis-infused products, and cannabis-infused products like edibles, sodas and topicals are projected to make up 17% of U.S. spending on legal cannabis in 2020, according to the latest report from New Frontier Data.
“As alternative ways to consume cannabis beyond combustibles gain popularity during the current coronavirus (COVID-19) crisis, not surprisingly we are seeing a spike in consumption of edibles and other infused products,” New Frontier Data Founder and CEO Giadha Aguirre de Carcer said in a press release. “We anticipate demand for innovative non-combustible ways to consume cannabis to continue to grow.”
In total, U.S. consumer spending on legal cannabis will grow by 25% in 2020 to exceed $18 billion, according to New Frontier Data. While cannabis flower remains the favored cannabis product over cannabis-infused products, researchers expect the demand for non-combustible products, including lotions and beverages, to increase over the next year. The research firm predicts sales of cannabis-infused products will grow to $3 billion this year.
“The global pandemic has influenced cannabis purchasing habits in many ways including purchasing practices. In March, cannabis dispensaries across the country began to experience a spike in sales due to the crisis. With this spike came a wave of new consumers purchasing legal cannabis for the first time as well as consumers taking advantage of cannabis delivery services,” the report said.
The report also found that a product’s quality is “the primary purchasing factor for consumers, at 87%, no matter whether they are purchasing cannabis-infused products that are primarily CBD or THC focused. … Consumers tend to have disparate, diverse expectations when it comes to infused products, but agree that quality is a fundamental factor in purchasing decisions. In both the CBD and marijuana markets, consumers consistently listed ingredients, dosage and testing results as the most important factors.”
For tips on how retailers can source quality CBD products for their stores, see “A Trusted Partnership” in the April issue of NACS Magazine and “Quality CBD Products Key to Success” in NACS Daily.