What Cannabis Businesses Need To Know About Holiday Shopping Trends
Ever since cannabis legalization has swept across the United States, it has changed how millions of consumers around the country think about cannabis.
It’s now part of the very fabric of our culture and society, present during social activities, traditional holidays, even weddings. The end of the year holidays are no different, as people have decided to use this as another opportunity gift loved ones with marijuana – the gift that keeps on giving. After all, who wouldn’t want to receive a marijuana product as a gift?
However, there’s a lot to understand about consumer cannabis buying behavior around the holidays. This information is valuable for cannabis businesses.
A recent report from Weedmaps, an online marijuana marketplace offering a range of software and e-commerce solutions for marijuana businesses, has just shared some new data that businesses can benefit from. Weedmaps sourced the data over a million transactions that occurred from October 2021 to January 2022, providing a deeper look into marijuana shopping trends during the busiest time of year for retail, reports Yahoo Finance.
They found that in 2021, there was a 167% jump in orders made with promo codes, boosting the overall increase in total orders made. Weedmaps also found that Black Friday is the most lucrative day as consumers use these discounts as an opportunity to stockpile marijuana for the holidays. There were 300% more people shopping around and claiming deals around Weedmaps sites, followed by large increases during Green Wednesday and Thanksgiving too.
Sixty-one percent more claimed deals on Thanksgiving, followed by 93% and 170% on Green Wednesday and Black Friday, respectively. But when it came to the quantity of orders made per day, Green Wednesday deals saw the biggest increase.
Cannabis Is No Longer A Novelty Item – But Integral To Holidays, Says Recent Data
Ayr Wellness, an integrated marijuana operator together with real-time marketing solutions business, Suzy, recently conducted a survey of around 1,600 Americans on October 2022. The purpose was to better understand the buying and consumer habits as well as beliefs of people about cannabis and Thanksgiving as well as holiday season.
According to Forbes.com, the survey revealed that 90% of marijuana consumers intended to purchase as much bud for the 2022 holidays as they did last year. Even if inflation had an impact on consumers’ budgets, overall. Seven in 10 consumers reported they would be buying cannabis to share with their loved ones. It was also interesting to find that consumers reflect the mentality that cannabis is no longer a novelty item, but instead an integral part of holiday shopping and gatherings with family.
Additionally, two-thirds of poll respondents said that they’d buy the same amount of marijuana as they typically do around the holidays. Meanwhile, 24% acknowledged they will be spending more on marijuana this year compared to last year.
The average cost to consumers is $112 during the holidays, and almost a quarter reported they will spend a minimum of $100 on marijuana for the holidays.
“This survey is reaffirming to Ayr, and the industry, that cannabis isn’t a luxury purchase for consumers but an essential good they’re incorporating into their holiday rituals,” said Jonathan Sandelman, Ayr’s CEO, in an email to Forbes. “Whether you’re sharing cannabis with friends and family or coping with family drama, data shows that ‘Danksgiving’ is going mainstream,” he says.
“Cannabis is increasingly becoming an integral part of Americans’ holiday celebrations, with the average consumer anticipating they’ll spend $100 or more on products to enjoy, gift or share with others,” Sandelman disclosed in a statement. “As stigmas continue to break down, we look forward to the day when cannabis will be as synonymous as pumpkin pie for Thanksgiving,” he said.
More Data Shows Increase In Sales During The Weeks Before Christmas & New Year’s Day
Headset, a leading real-time cannabis and market intelligence firm, has also shared similar buying patterns.
They shared in January 2022 that US and Canadian marijuana markets saw a jump in sales from December 18 through 24 of 2021 compared to the prior week. The biggest increase was seen in the Canadian marijuana market, where they saw a 26% boost in sales while the US saw 17%. Markets in both countries saw the biggest increase in the topicals category right before Christmas, followed by beverages and edibles.
New Year’s Eve saw additional discount increases among both markets, adds Headset. The average discount was 21.1% in the US, and 4% in Canada. Drinks, flower, and concentrate led the category sales during New Year’s Eve in the US while sublinguals and tinctures were ahead in Canada.
Meanwhile, LeafLink, a wholesale marijuana platform, also shared post-holiday insights. They found a 6.8% jump in platform sales last December 2021 compared to 3 months before. For them, flower was the most popular purchase, accounting for over a third of sales. Customers spend the most on packaged bud though flower in bulk followed next. The second most popular category were cartridges, taking over 24% of sales.
Cannabis retailers can use these valuable insights for designing holiday promotions and offers both in-store and online. Knowing what products are most popular among customers for gifts during the season of gifting can help strategically create offers and let you know where to place discounts if necessary. With the holiday rush already here, hopefully this guide has helped you!