Hashish-Infused Merchandise Anticipated to Attain $three Billion in Gross sales in 2020
A new report shows the demand for cannabis-infused products like edibles and lotions is on the rise in 2020. Keep reading for an overview of the report’s key findings.
A new report reveals cannabis consumers in the United States are becoming more interested in cannabis-infused products. The latest report from New Frontier Data projects that 17 percent of U.S. spending on legal cannabis in 2020 will be on cannabis-infused products like edibles, sodas, and topicals.
In total, U.S. consumer spending on legal cannabis will grow by 25 percent in 2020 to exceed $18 billion. 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 believes sales of cannabis-infused products will grow to $3 billion this year.
“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,” said New Frontier Data Founder & CEO Giadha Aguirre de Carcer in a press release. “We anticipate demand for innovative non-combustible ways to consume cannabis … to continue to grow.”
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.
New Frontier Data is an industry leader in cannabis market research. Their latest report on cannabis-infused products analyzes the performance, consumers and manufacturing processes of the infused products market.
According to the firm’s latest report, a product’s quality is key for consumers. The quality of a product is the primary purchasing factor for consumers, at 87 percent, 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,” the report’s authors wrote.
Key Findings of New Frontier Data’s Report:
Other key findings in the latest report from New Frontier Data include:
Infused cannabis products represent 14 percent of sales and are the third most popular cannabis product type in the United States behind flower and vapable products.
Solid edible products make up more than 90 percent of top-selling infused products, among those chewy edibles such as gummies are the most popular.
Cannabis-infused product consumers are more likely to primarily source their cannabis products from cannabis dispensaries, compared to those in the overall population of cannabis users (37 percent vs. 15 percent).
Find the full report, “The Cannabis-Infused Products Report Series: U.S. Consumer Experience and Demand,” here.
CBD-Infused Products Gaining Popularity
Hemp CBD products are gaining in popularity due to their potential to naturally promote wellness. CBD products come in many forms including CBD-infused products such as chewy edibles and body lotions. A new report from Data Bridge Market Research suggests the CBD oil market is forecasted to experience a growth rate of nearly 32 percent from 2020 to 2027.
Hemp Industry Daily projects that retail hemp-derived CBD sales will continue to surge, from $1.2 billion in 2019 to $10.3 billion by 2024, representing a five-year compound annual growth rate of 54 percent.
Bloomberg released a report last year estimating that nearly 7 percent of Americans use hemp-derived CBD products. The report also anticipated the continued growth of CBD users, reaching 10 percent of Americans by the year by 2025.
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