- by Aseppak
- October 10, 2019
The year 2019 was a year of evolution for the cannabis market in Canada. Deloitte’s early 2019 report on the Canadian industry touched on different aspects from regulation to consumer segments in this thriving industry. Here are some of the most interesting insights regarding the world of beverages.
It is expected that by mid October 2019 edibles containing cannabis products will be approved for sale. Dried cannabis, cannabis oil, fresh cannabis, cannabis plants and cannabis plant seeds were legalized in 2018. It is now the turn for this exciting sub-category.
It is important to understand the relationship between the Canadian and the American markets. They are not the same. Regulations and the main approach to business will be different. The Canadian market is looking at fast growing companies raising money in public IPOs.
The American market, led by California, the fastest amongst them all, is entirely consumer driven. We expect similarities between consumers in Canada and in America, as it happens with the food industry and in general. However, we also expect differences between the two.
Here is what we know about the North American consumer regarding edibles and beverages.
- There will be a new market segment of consumers. Until now, the large bulk of cannabis consumers have been notably risk takers in recreational environments. We can expect a new large segment of conservative experimenters, both as recreational and as wellness related.
- Until now smoking has been the preferred way of intake. We expect to see an important growth in edibles, topicals and infused beverages.
- The consumer is eager to try different forms of cannabis edibles. Some of the preferred formats are gummies, cookies, brownies, caramels, cake, truffles, cooking ingredients, prepared meals, dried fruit, mints, snacks, chocolate, honey and sugar, candy and gum.
- We expect to see a growth in consumption “alone at home” in relation to the most usual consumption, with a group of friends or with a partner (social consumption).
- The most usual motives for cannabis edibles consumption are shown in the following graph, by Deloitte (2019).
- Brands are not currently that important for the consumer in general. Only 13% of the sampled consumers say they look for a familiar brand for edibles.
- It appears that edibles will not cannibalize consumption from other sub-categories. This means that the category is still expected to grow quite a bit.
- Infused teas are one of the preferred beverages amongst the consumers. Hot and iced cannabis beverages appeal equally to men and women. They are likely to prefer to buy ready to drink cannabis-infused beverages.
- For current consumers, their most likely concerns are product safety and potency.
- One in three (35%) likely cannabis consumer sees cannabis-infused beverages as an alternative to alcohol. The most likely uses for infused beverages are:
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