Recognizing Banking Risks in Emerging Cannabis Business Ventures
September 15, 2018
Despite Bumps, CBD Market Growing Toward Convenience Store Shelves
September 19, 2018Recognizing Banking Risks in Emerging Cannabis Business Ventures
September 15, 2018Despite Bumps, CBD Market Growing Toward Convenience Store Shelves
September 19, 2018
- In 2017, rising sales of concentrates in Colorado represented nearly 30% of all retail cannabis sales.
- While in Q1-2016 sales of medical concentrates were 44% higher than for adult-use sales, preferences had flipped by Q4-2017 as adult-use sales outpaced medical sales by 6%.
- Overall, the number of concentrates sold per adult cannabis consumer in the state grew more than 58%, from 10.4 grams per person per year in 2016 to 16.5 grams in 2017.
- Surging demand for concentrates significantly impacts the cannabis supply chain. Some growers are establishing specific cultivation facilities for flower extraction.
- Sales of concentrates are spurring dramatic parallel growth in sales of vape hardware and dab rigs (oil consumption devices).
- Colorado offers an indication of the demand trajectory for concentrates as adult use markets expand nationally.
- Consumers in the illicit market prefer flower, access to concentrate products quickly shifts their preferences, with concentrates and accessories becoming increasingly popular among their shopping carts.
