In an exclusive interview with Biedex Markets Cannabis, Brendan Mitchel-Chesebro, of BDSA, the leading market firm specializing in global cannabis markets, shared insights into the trends, preferences and strategic moves retailers can make to capitalize on the 4/20 cannabis consumption spike.
Predicting The 4/20 Surge
Retailers looking to harness the annual 4/20 sales boom should closely observe historical sales data. Mitchel-Chesebro pointed out that in 2023, sales on April 20th soared to 137% above the monthly daily sales average.
With 4/20 falling on a Saturday in 2024, a day historically known for high sales volume, retailers are advised to prepare for a similarly significant uptick.
Trending Now: Solventless Extracts And Culinary Edibles
Consumer interest has notably shifted towards solventless extracts and culinary edibles. “Solventless products, in particular, have grown their share of total extract sales by 75% from Q1 2021 to Q1 2024, now making up 17% of total extract sales,” Mitchel-Chesebro highlighted.
This growth is attributed to a combination of quality preference and the narrowing price gap, making these premium products more accessible.
“While there are likely several trends driving the growth of the solventless subcategory, one likely driver is pricing dynamics. Solventless products (particularly rosin) are often priced higher than the total extract category, with BDSA data showing that solventless products were priced 27% higher than the total extract category,” Mitchel-Chesebro said.
“With the significant price compression, we’ve seen over the past two years, solventless products are no longer as price prohibitive as they used to be, and now are accessible to both consumers who prefer quality, and consumers who prioritize low price when choosing their cannabis.”
Effective Discounting Strategies
Mitchel-Chesebro underscored the importance of strategic discounting in categories expected to see holiday boosts, like solventless products and culinary edibles.
Cross-promotion, particularly involving products commonly bought together such as sublingual, edible, and topical products, has proven to boost sales volumes significantly.
“Retailers can successfully boost sales through cross-promotion. For example, basket analytics show that sublingual buyers are more likely to purchase edible and topical products in the same transaction than buyers purchasing other form factors,” Mitchel-Chesebro said. “By offering a promotion on edible and topical products when consumers buy a sublingual, retailers can boost volume at retail and make the most of the holiday.”
Tailoring Discounts To Local Markets
When asked about aligning discount strategies with local trends, the analyst recommended leveraging cross-promotion based on basket analytics to increase basket sizes. “By promoting products typically purchased together, retailers can maximize the holiday traffic,” Mitchel-Chesebro concluded, emphasizing the use of cross-promotion as a key tool for the holiday. Through careful analysis and strategic planning based on historical data and current trends, retailers can optimize their offerings for the 420 holidays, catering to consumer preferences while enhancing profitability.
Photo: AI-Generated Image.