Cannabis Topics: Consumer Trends – Cannabis | weed | marijuana

What’s the deal with cannabis issues? Why aren’t they more popular?

Topical cannabis products account for less than 1% of total cannabis sales in North America. And its popularity is slowly declining in both Canada and the US.

Why?

They have a higher bioavailability than, for example, capsules. You can find near-instant relief by applying cream or gel directly to sore or infected areas.

But that also explains why topical cannabis products are not as popular.

With flowers being the largest category and pre-rolls being one of the fastest growing, it’s safe to assume that most people smoke or vape cannabis.

Cannabis-infused topicals are cannabinoid therapy, but not in the same physiological way as smoking or vaping cannabis.

Luckily, Headset has put together a report that looks at consumer trends related to cannabis. The data belongs to them; the interpretations and comments are my own.

Market share of topicals in North America

This chart shows the market share of topicals compared to other cannabis products.

As you can see, topical products are not that popular. They make up a small percentage of total cannabis sales in both the US and Canada.

From January to August 2022, topicals make up just 0.5% of Canada’s total cannabis market.

And that’s a 9% drop in market share year over year.

In the U.S., topical products accounted for 0.7% of total cannabis sales during this January-August 2022 period. A 3.4% drop in market share.

market share over time

This chart shows market share over time. In the US, topicals peaked in 2018 at 1.89%. Since then, market share has fallen and leveled off.

In Canada, too, the market share has fallen and has leveled off at around 0.7%.

In Canada, topics peaked at 0.85% in December 2021. Possibly due to the holiday season and buying new gifts. Because by August of this year, sales fell to 0.52%

Cannabis issues in states and provinces

Across Canada, current popularity varies from province to province

Alberta has the highest percentage of any province at 2.7%.

That is five times the national average. Ontario & BC also have higher sales than the national average.

Saskatchewan lowers the national average and currently accounts for 0.1% of all cannabis sales.

Florida wins first prize in the US as the highest themed market with 1.3% of total cannabis sales. Florida is the largest medicinal cannabis market in the United States.

No doubt because of the older adults using CBD cream. (Older adults tend to use topicals more often than younger adults, as shown in the data below).

Topical use is also high in Colorado, one of the first states to be legalized in November 2012.

Price volatility of cannabis topics in Canada

This chart shows the average price for topical products in Canada since 2021.

Prices are comparable between the US and Canada, where the average current US price is $26.70. In Canada it is $31.25 or $25.71 in US dollars.

Canada differs in price stability. Especially in the last two years.

In Canada, the price of topical products fell enough in 2021 to record a 12.3% drop through August 2022.

In other words, what used to be a $40 cream is now only $33.

The lowest average price was recorded in December 2021, when retailers valued topical products at $28.44. Since then, prices have been on a slight but steady upward trend.

Price of Cannabis Topicals in USA

This chart shows the average price for topical products in the US, which has been much more stable and predictable.

As of early 2020, the average price is around $26-27. There has been a slight increase of 1.4% since August 2022.

What themes are people buying?

What themes are popular in the US and Canada? According to the data, which are the best-selling?

The most popular were lotions, ointments, gels and creams.

In Canada, these products account for 60% of total sales, while in the US, these products account for 74.6% of total topical sales.

Canadians also seem to like cannabis-infused baths, scrubs, and bath salts. (The bath salts you put in your bath, not the THC-enriched synthetic cathinone).

CBD is reason of state for issues

Topical products are most popular when they contain CBD.

CBD is anti-inflammatory and good for the skin. It works for aches, pains and spasms and has neuroprotective properties.

How popular are CBD products in Canada and the US?

In Canada, 92.7% of topical products contained either CBD alone or mixed with THC and other cannabinoids.

In the US, 79.4% of topical products contain some CBD. However, it’s worth noting that Americans can buy pure CBD products pretty much anywhere (depending on your state).

Thanks to Donald Trump’s signing of the 2018 Farm Bill, Americans can easily access legal CBD products online.

Across the border, the Canadian government is thwarting consumers with the legal cannabis access system. Retail varies from province to province, but overall both levels of government keep CBD prices artificially high.

Still, products with a balanced 1:1 THC:CBD ratio are the most popular in both countries.

US consumers prefer CBD products with more THC as the data shows no CBD purchases outside of cannabis stores. So when Americans walk into a cannabis store for a topical, they want it to contain THC.

Because of this, topical THC products with 300 mg THC or more are most popular in the US, accounting for 1/3 of topical sales.

But here, too, the different access systems distort the market data.

For example, CBD isolate sales account for 30.9% of topical sales in Canada. Compared to 7.1% of sales in the US.

Americans can buy CBD isolates anywhere, including online, where the Canadian government restricts consumers to legal entry points designated by federal and provincial governments.

Demographic Preferences

This final chart shows the different age groups and how that contributes to current sales.

Unsurprisingly, older people prefer to use topicals than smoke flowers.

Women are more likely to buy topicals than men, which is also unsurprising since women make up a large portion of the non-cannabis topical market.

Baby boomers account for 16.1% of all topical sales while accounting for just 4.6% of the overall cannabis market.

In contrast, female consumers in the Gen Z category account for 3.6% of topical sales.

Conclusion

Themes and buds can contract in the cannabis space. However, other products such as pre-rolls and beverages are gaining market share and popularity.

Trends and consumer demand are ever-changing, so nothing here should be viewed long-term.

In a few years it could be common for many cannabis users to have a nanoemulsion processor at home to make their own cannabis beverages.

This change in consumer trends and market technology would likely result in revenue declines in the beverage market. This may coincide with an increasing popularity of topicals as more baby boomers discover the healing and calming powers of cannabis topicals.

It all depends on the consumer.

In a free market, the consumer votes with their dollar. No one rises to the top unless they provide the resources needed to meet consumer demand.

footnote(s)

https://www.headset.io/industry-reports/cannabis-topicals-an-analysis-of-category-trends-data