U.S. Cannabis Market

Part
01
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Part
01

U.S. Cannabis Market: Top Products

Wana Sour gummies, Plus gammies, and Kiva chocolates are the top ingestible cannabis products in the cannabis edible industry. Cannuka Calming Eye Balm, Herbivore Emerald Facial Oil, and Lord Jones Lotions are the top topical cannabis products in the United States.

TOP INGESTIBLE CANNABIS PRODUCTS

WANA SOUR GUMMIES

  • Wana Sour gummies are among the top selling gummies in the United States. The gummies come in different flavors like mango, yuzu, strawberry, watermelon, blueberry, and mixed flavors. They are available in several THC and CBD rations as well as indica and sativa class options.
  • Wana gammies own 47% of the total cannabis gummy market. According to Nancy Whiteman, CEO Wana brands, Wana gummies are the most preferred brand by customers because they not only have a delicious taste, but they are also potent and consistent.

PLUS GAMMIES

  • According to the Los Angeles Times, Plus gammies are among the most popular cannabis edibles in the United States. Also, according to Eaze, a technology platform in San Francisco that connects consumers to cannabis dispensaries, plus gummies are among the best-selling edibles that have ordered through their services.
  • The plus gammies are available in lemon, watermelon, and blackberry flavors as well as CBD-only coconut and pineapple.

KIVA CHOCOLATES

  • According to Thrillist, Kiva chocolate is one of the leading cannabis edible brand across the nation. The company has incorporated great chocolatier experts as well as constant innovation to meet its customers' expectation. The chocolates have regulated doses of CBD or THC.
  • The award-winning chocolate bar is available in both dark and milk chocolate. It is made up of cocoa butter, semisweet chocolate, cannabis extracts, Lecithin, and Potassium Carbonate,

TOP TOPICAL CANNABIS PRODUCTS

CANNUKA CALMING EYE BALM

  • According to Business Insider, Cannuka Calming Eye Balm is ranked the best overall CBD skincare product. This Cannuka's best-selling product is designed to remove puffiness and dark under-eye circles. It has received positive online reviews as a result of its excellent results.
  • It contains New Zealand's manuka honey which has anti-inflammatory and antibiotics properties. It also contains Vitamin E and grapefruit essential oil which regenerates new skin cells, soothes the skin as well as reducing skin oil.

HERBIVORE EMERALD FACIAL OIL

  • According to Business Insider, based on customer reviews, Herbivore Emerald Facial Oil is the best hemp-derived face oil. It is known for solving skin problems like dullness and dryness.
  • This facial oil contains high moisture content that quickly absorbs into the skin. Olive oil and cannabis sativa hemp oil ingredients help in locking in moisture to bring a healthy skin complexion.
  • The facial oil contains tumeric root and ashwagandha ingredients, which provide soothing and protection from environmental stress like UV rays, pollution, and also lack of sleep, among others. Besides, it has a fine scent from cannabidiol's terpenes.
  • With more than 250 reviews on its high hydrating properties, Herbivore Emerald Facial Oil has been rated 4.5 on Sephora

LORD JONES LOTION

  • According to Business Insider, Lord Jones Lotion the best CBD body lotion. It is produced using high spectrum CBD oil. In addition to moisturizing the skin, it has been designed to provide relief to body pains and aches like menstrual cramps, aching feet, post-workout recovery, or stiff joints.
  • It is combined with Shea butter which provides fatty acids and natural vitamins that helps in skin nourishment. Also, it has a menthol derivative which generates a cooling effect that helps in supporting flow. The lotion is available in signature fragrance or fragrance-free.
  • Most customers refer to it as "life-changing" because of its body pain-relieving effect in addition to being a beauty product.

RESEARCH CRITERIA

To provide top cannabis ingestible cannabis products in the United States, we search through several sources including Thrillist, Marijuana SEO, Grizzle, Huffpost, Trip Savvy, and Los Angeles Times. These sources highlighted the best and most selling cannabis edibles in the cannabis industry. After a thorough analysis of products discussed in each source, we selected the three products listed across all the sources.

To provide the top topical cannabis products, we analyzed sources like Business Insider, HuffPost, Wikileaf, Marijuana SEO, among others. The sources highlighted the best and most popular cannabis topical in the market. We selected the three most discussed products across the sources.


Part
02
of four
Part
02

U.S. Cannabis Market: Non-Cannabis Brands (1)

Brink's Company, New Age Beverage Corporation, Alkaline Water Company, and Heineken are some of the non-cannabis brands in the cannabis space.

BRINK'S COMPANY

  • Located in Virginia, the United States, Brink's company is a leader in security solutions and secure logistics, including ATM replenishment and maintenance, and cash-in-transit. The company was founded in 1859, and they currently have a customer base in more than 100 countries across the globe.
  • Brink's company has partnered with Canopy Growth Corporation to provide secure cash management and logistics services for Canopy Growth's domestic and global cannabis operations.
  • Besides, through a cross-selling program, Brink's provides services to retail clients and growers associated with Canopy Growth. International shipments of Canopy's high-end cannabis products are handled by Brink's Global Services, a subsidiary of Brink's company.

NEW AGE BEVERAGE CORPORATION

  • New Age Beverage Corporation is a global healthy beverage company that produces products that inspires and promotes healthy living. The company has entered into a business agreement with Docklight Brands to manufacture and supply Bob Marley-branded cannabis drinks. Through this deal, the company can leverage the global brand that promotes healthy cannabis use.
  • Marley+CBD Mellow Mood is the first Marley brand that the company has launched. This drink is a health and relaxation beverage that is available in 15.5 oz cans. Currently, the cannabis drink is available in Michigan, Colorado, Washington, D.C, and Oregon. New Age Beverage is planning to extend its distribution network to other States to meet the growing demand of its new cannabis beverage.

ALKALINE WATER COMPANY INC.

  • Located in Arizona, United States, Alkaline Water Company Inc. is a premier producer of premium bottled alkaline drinking water. In the past years, the company has been working to develop a CBD infused hemp water. According to Globenewswire, through this development, the company "could be one of the first national U.S. beverage companies to bring true water-soluble, full-spectrum features of bio active natural hemp extract molecules to U.S. consumers."
  • Alkaline Water Company has already partnered with Infusion Biosciences (IBS) in a Binding Letter of Agreement to provide a non-exclusive license to use its Aqueous Phytorecovery Process technology. In addition, IBS will provide ready-to-drink natural hemp-extract formulations.

HEINEKEN

  • Heineken, a beer producer, has introduced sparkling cannabis water known as Hi-Fi Hobs. The drink is manufactured by its Lagunitas, which is its California based brand.
  • Hi-Fi Hobs is part of the rising trend that involves companies venturing into the cannabis industry, and could also uplift the struggling alcohol industry. The drink is available in two varieties. One is hybrid, and the other is purely THC.


Part
03
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Part
03

U.S. Cannabis Market: Non-Cannabis Brands (2)

Four additional recognizable non-cannabis brands that are moving into the cannabis space include Kroger, CVS Pharmacy, American Eagle Outfitters, and Abercrombie & Fitch.

KROGER

  • Kroger Co. is a retailing company that is among the top largest companies in the United States. Recently, the company joined the rising number of retailers who are tapping into the opportunities created by the growing demand for cannabis products.
  • The company has started to sell hemp-derived CBD products like oils, creams, and balms. By selling CBD products, Kroger is seeking to reposition itself in the retail business to remain more competitive.
  • The products are available in the following states; Illinois, Arizona, Oregon, West Virginia, Wisconsin, Washington, Michigan, Indiana, South Carolina, Arkansas, Wyoming, Tennessee, Missouri, Kentucky, Nevada, Colorado, and Kansas.

CVS PHARMACY

  • CVS Pharmacy is a subsidiary of CVS Health, a retail and healthcare company headquartered in Rhode Island, United States. The pharmacy started selling CBD products early this year in eight states (Colorado, Indiana, Kentucky, California, Maryland, Tennessee, California, and Alabama).
  • The pharmacy is selling cannabis topical like lotions, roll-ons, salves, sprays, and creams.

AMERICAN EAGLE OUTFITTERS

  • American Eagle Outfitters, a teen apparel retail company has announced its plans to start selling its special line CBD-infused body products in October 2019. The company has partnered with Green Growth Brand, an Ohio based cannabis company, to develop for them CBD body products.
  • According to Peter Horvath, CEO Green Growth Brands," GGB provided the expertise necessary to develop the product formulations and packaging to create a really special line of products."
  • The CBD-infused topicals are body care products, including lotions and balms. They will be available online and in about 500 American Eagle's stores.

ABERCROMBIE & FITCH

  • With more than 125 years in apparel industry, Abercrombie & Fitch is a lifestyle retail company that focuses on casual wear. The company is headquartered in Ohio, United States.
  • In June 2019, the company made its move into the cannabis space by partnering with Green Growth Brands. The company will be selling Seventh Sense's body products like sugar scrubs, muscle balms, body lotions, and lip balms. The products will be available in over 160 Abercrombie's stores.

RESEARCH STRATEGY

To find recognizable non-cannabis brands that are trying to move into the cannabis space, we searched through articles and publications on industry sources like Reuters, CNBC, Globenewswire, Markets Insider, and PR Newswire. After a thorough analysis, we identified Kroger, CVS Pharmacy, American Eagle Outfitters, and Abercrombie & Fitch. These brands are not only major players in their respective industries, but they are also trading their shares in the New York Stock Exchange Market.
Part
04
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Part
04

U.S. Cannabis Market: Trends

The rise of legal cannabis social clubs and availability different flavors of CBD beverages are some of the trends increasing consumer consumption of CBD products. Unlike the younger generation who are using cannabis for recreation, a growing number of baby boomers are using CBD products primarily for health and medical reasons.

The Emergence of Social Consumption

  • According to BDS Analytics, there is an emergence of legal cannabis social clubs in some markets in the United States. Many cannabis enthusiasts enjoy their puff in small groups or alone in their homes.
  • Research shows that many cannabis consumers will take advantage of venues earmarked for legal public consumption.
  • Cities that have cannabis progressive policies like Las Vegas, San Francisco and Denver/Boulder will be the first to set up public consumption venues, a trend that will quickly spread to the rest of the country.
  • 71 percent of cannabis consumers say they use the plant for social and/or recreational purposes. About a third specifically consume before meeting with others. 41 percent use cannabis for date nights, as well as daytime fun.
  • A number of businesses have been expanding their operations targeting this niche. Businesses have been applying for marijuana social consumption licenses across the United States, betting on the increase in public venues that are likely to encourage more people to consume.
  • Vape & Play, the city’s second licensed designated consumption area in Denver, bootstrapped $500,000 to expand its business.
  • In addition, a number of states are revising their regulations to attract social-use businesses. Las Vegas’ draft regulations allow social-use businesses to sell beer and wine containing less than 11% alcohol content.

Increase in consumer Choice

  • Thanks to the emergency of sippable cannabis, consumers now enjoy their favorite hub in a variety of options like tea bags, cold bottles of kombucha, water-soluble powdered mixes, and packaged shots of coffeeamong others.
  • In 2018, beverages accounted for 5 percent of the annual US Edibles market, with sales of $30 million. There is also increase in the consumption of CBD beverages.
  • The US Edibles market is expected to reach $3.4 billion by 2022. Cannabis beverages will account for the largest share, growing almost ten-fold, to $374 million.
  • With consumer preference shifting towards cannabis beverages, some product categories within the Edibles market will see their of sales negatively impacted. In Q2 2019, beverages accounted for 6% of the total U.S. edibles market, with sales of $13.4 million.
  • There are also many brands coming up within cannabis beverages. In Q2 2019, there were 88 beverage brands in the US-19 more brands than in Q2 2018.
  • The emergence of various options is increasing visibility for cannabis products and driving the industry towards widespread acceptance. The industry is therefore more visible to potential investors.

The Aging Consumer

  • For long, cannabis has been associated with the youth in their 20s. However, there is growing consumption among seniors with Baby Boomers coming out as an important and growing segment.
  • Cannabis use in U.S. adults over age 65 saw more than a tenfold increase from 2007 to 2017. This increase represents an increase in revenue to the industry during the same period.
  • 67 percent of Boomers do consume for health and medical reasons. The health sub-sector of the cannabis industry is therefore expanding thanks to an increase in the number of senior medical consumers.
  • The primary reason for consumption among Boomers is to help with medical issues. On the other hand, the younger people primarily consume for fun.
  • A fraction of older consumers also use cannabis to just have a good time. Around 60 percent of Boomers also use cannabis to unwind and having a good time.
  • Another report by Forbes says two-thirds of Boomers use cannabis for medical reasons, mainly to treat chronic pain, anxiety and insomnia. According to this report, a significant 39% of Boomers use cannabis for recreation.
  • More than a third of Baby Boomers use cannabis a few times a year, while around 22% use it on a daily basis. The majority (82%) of Boomers prefer using cannabis while relaxing at home.
  • With the number of aged consumers rising, more states are expected to legalize medical and recreational cannabis.
  • Old people control 70 percent of the country’s disposable income, they are spending more on discretionary goods, including cannabis products.

Recreation or Medical-American Consumers no Longer Care Much about the Motive for Consumption.

  • There a decline in medical dispensaries while adult-use shops are booming. This is largely because people aren’t using cannabis for medical reasons alone.
  • 64 percent of people in the US believe that cannabis has medical benefits, and in states that already offer adult-use or medical sales, 88 percent endorse cannabis for medical purposes. With more people acknowledging the health benefits of cannabis, levels of acceptability and consumption are expected to go up.
  • 71 percent of cannabis consumers in Level 1 states use for social purposes. On the other hand, 56 percent consume for health/medical purposes. 32 percent consume for both recreational and medical purposes.
  • 55 percent of cannabis consumers in Level 1 states use it for a single purpose, while 45 percent reported multi purposed consumption (rec/social, health/med, QOL, and/or other).
  • Among consumers who use for medical reasons in Level 1 states, 64 percent of them use for recreational/social purposes and 40 percent consume for both recreational and medical purposes.

Convenience is King

  • There is a huge crave for convenience when buying, as well as when consuming cannabis. In particular, convenience is a key factor among people who are new to cannabis altogether.
  • Location is a major consideration. 67 percent of dispensary shoppers identified location of the store as vital.
  • Half of consumers say they are “largely” influenced by the convenience of the form of consumption form when choosing a product. The industry is responding with innovative features like home delivery, crowd sourced standpoint, restaurant and grocery. This is further opening business opportunities in other support sectors.

Increased Consumption of CBD

  • There is growing use of cannabinoids like CBD. These are compounds found in cannabis as well as its sister plant, hemp. CBD is not psychoactive unlike THC, another compound found in cannabis.
  • 39 percent of cannabis Consumers have tried CBD, while just 9 percent of Acceptors and 1 percent of Rejectors have experimented with CBD. This is increase in CBD consumption is driving more revenue into the market as well as the number of consumers.
  • Although many cannabis products are inhaled, the main delivery channels for CBD are Ingestibles, which represent 53 percent of sales, and Topicals at 24 percent.
  • There is need for consumer education on the effect of CBD and THC. 69 percent of US consumers say either there is no difference between the effects of the two, or they don’t know the answer.

Growth of Consistent, Low-Dose, Dialed in Products

  • More consumers have adopted consistent dosing, and are able to carefully control the nature of their experiences.
  • 40 percent of Edibles consumers have used high-CBD products, and of these 27 percent consume products that are low in THC (1 mg) and high in CBD (10 mg). This is further driving growth in edibles sub-sector.
  • 33 percent of Edibles consumers prefer low-dose products, defined as products containing less than 10 mg of THC per serving.
  • 33 percent of consumers say manufacturers need to improve on crafting consistent doses, and "41 percent say they wish more products were labeled with the desired, manufactured effects, such as relaxation or energy."
  • 54 percent of consumers who use Ingestibles in fully legal states have chosen products based on their CBD content. Out of these, 58 percent prefer products that have a higher ratio of CBD to THC or no THC at all.

Research Strategy

To identify consumer-facing cannabis trends in the United States, we searched through several sources including BDS Analytics, Forbes, and Pot.Guide.Com. These sources discussed the current trends in the US cannabis market. After a thorough analysis of each trend, we were able to identify the ones that are affecting consumers.
Sources
Sources

From Part 04
Quotes
  • "71 percent of cannabis consumers say they engage with the plant for social and/or recreational purposes"
Quotes
  • "The Boomerangs, according to BG, are “Baby Boomers … who used cannabis when younger, then quit, and are now coming back to cannabis.” Over half of Boomerangs are men. About two-thirds return to cannabis for medical reasons, mainly for treating chronic pain, anxiety and insomnia. Still, a significant 39% of Boomerangs use cannabis recreationally. Over a third use cannabis a few times a year, while roughly 22% use it on a daily basis. The overwhelming majority (82%) of Boomerangs prefer using cannabis while relaxing at home."
Quotes
  • "Today, 44% of American cannabis users consume for health or medical reasons"
Quotes
  • "Applicants for marijuana social consumption licenses across the United States are betting that consumers will want to patronize a public venue where they can consume cannabis with other users."