flation – High-end cannabis brands are poised to hit budget-conscious consumers in a big way

The cannabis industry consists of various products ranging from flowers, extracts, edibles and so on. With such a wide variety of products, their categories in the market tend to evolve and change over time. This means that some of these products have tiers and sub-tiers that affect which products rank higher in front of the consumer. It is therefore important to examine what makes a cannabis product in high demand. Read on as we explore what makes a cannabis product for consumers who set cannabis prices as the bottom line.

Cannabis dispensaries are organized to distinguish premium products from generic items on menus. Branding, marketing and organization in the pharmacy served as key differentiators to distinguish these products. The aim is to ensure that the customers can be attracted by the features, benefits, quality and other attributes of such top-of-the-line products. This is expected to inform such a customer’s purchasing decision and guide them to the top products in the pharmacy. However, trends have shown that the main factor driving consumer purchasing decisions in 2022 will be cannabis prices.

A consumer’s purchasing power is a very important factor that determines what the consumer can buy in the market. This means that cannabis users are very conscious of keeping the prices of products in line with their purchasing power. While this is largely true, the cannabis industry is such that consumers aim to achieve maximum satisfaction from their products. This means that cannabis users want to get the most bang for their buck, considering prices and their purchasing power.

West Coast cannabis flower prices have recently plummeted, with outdoor and greenhouse produce prices down 50% from a year ago. This means that consumers who pay close attention to the prices of products now have a wider web of options to choose from.

Jason Bridges as Merchandising Director at Amuse, one of the largest cannabis retailers in California. Most recently, he got involved in the discussion about price-conscious consumers in the cannabis industry. Bridges believes consumers are more price conscious today than they were a few years ago. He added that because of their quality and potency, consumers are usually willing to pay premium prices for flowers with THC levels of up to 30%. However, some small brands now have high-THC buds at low prices. Bridges therefore believes this has influenced the mindset of consumers to look for high-THC products at low prices, regardless of brand.

What will help you understand this market characteristic of cannabis consumers is the performance of cannabis products in mature markets. Headset reported on the popularity of cannabis products in mature markets earlier this year. The results show that the products are constantly moving up and down in the market based on consumer performance. As markets mature, edibles and other products are gradually gaining traction over cannabis flower, which typically dominates the market. Other products such as tinctures, sublingual strips, pre-rolls and beverages are also gaining in importance. Canada saw an impressive 3,000% growth in tinctures and sublingual products during the year.

The distinction between product groups also affects the prices and services of such products. As already mentioned, some products tend to have levels and sublevels that behave differently and therefore cannot be generalized. Flowers, for example, have about five different levels, according to Bridges, which is more than that of each product. These tiers are priced differently and are therefore likely to be arranged differently and perform differently. Edibles, on the other hand, are all in the same price range, which means their performance in the market depends on the customer’s preferences. Other products like vape cartridges and pre-rolls are still similar despite their small differences in performance. This means that only flowers have a wide range in price levels that could influence the customer’s choice.

The BDSA analysis also showed the performance of some of these products in the California cannabis market as of 2021. The product that has seen the biggest increase in the vape market is live resins. Resins are starting to become a household name in cannabis dispensaries as they are premium products with a high profile in the vape market. BDSA analysis shows that live resins will account for 30% of vape sales in California in 2021. This was a steady increase from 10% in 2019. Currently, live resins have grown to more than 75 percent of the high-priced products in this category. This live resin trend is similar to that of flowers in the marketplace, where premium produce outperforms budget buds.

As more sub-categories emerge, differentiation in cannabis prices will be a major topic of discussion in 2022 as products compete for top-of-the-line. Consumers must decide which products have added value and deserve the premium for higher prices. This category is already present in the edibles market, where consumers are willing to pay more for additional functional benefits in the gummy candies. Gummies with CBD are 20% more expensive than those without. Nevertheless, according to the BDSA, they are seeing a 40 percent increase in sales from 2020 to 2021. Gummy products containing minor cannabinoids like CBN and CBG are also enjoying increasing popularity and performance in the California markets.

The performance of cannabis products in the market has shown that the cannabis industry is not like other industries out there. While predictions can be made about which product should perform better than the other, it’s still in the hands of the consumer to choose what they want. With a wide range of products available to meet consumer needs, the struggle for the top shelf has become less clear-cut. Purchasing power and prices can be a strong determinant in some regions, while benefits are the main driver for some categories. Ultimately, this means that the products that match the consumer’s personal preferences and abilities should perform better. But again, that’s not set in stone, so don’t bet on it.

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