Cannabis Industry Presents Unprecedented Consumer Market Opportunity
New Frontier Data 2017 Cannabis Industry Annual Report Reveals Medical Cannabis Patients Outspend Adult Use Consumers Nearly 3 to 1 in Multi-billion-dollar U.S. Market
Washington – New Frontier Data, the authority in business intelligence for the cannabis industry, has released, The Cannabis Industry Annual Report: 2017 Legal Marijuana Outlook. The report is the first to reveal the growing discrepancy in spending between recreational and medical consumers in the fastest growing industry in the country; months ahead of California, the largest consumer economy in the U.S. and 6th largest in the world, activating its adult-use market in 2018 after being the first state to legalize medical use in 1996.
“California offers the perfect example of why it is so important to understand trends in consumer behavior. The state’s legal industry is forecast to grow from $2.8 billion in 2017 to $5.6 billion in 2020. That spending will be increasingly directed at products and retailers who understand and serve the market’s evolving tastes and preferences. The market is changing, and the most successful operators will be those who adapt most quickly to the change,” said New Frontier Data CEO Giadha Aguirre De Carcer.
Investors, dispensary operators, even policy makers have all been trying to find the inflection point between prediction and actual consumer behavior. Through New Frontier Data’s partnership with Baker Technologies, the leading cannabis retail CRM and marketing automation platform, the data surrounding the legal cannabis market is becoming clear and actionable. With visibility into the spending and consumption habits of cannabis consumers nationally, we have found that medical patient spending is outpacing adult-use consumer spending by a factor of three. In 2016 alone, adult-use consumers shopped once every 14 days and spent $49 per transaction; medical consumers, by contrast, shop once every 10 days and outspend the adult-use customer by more than three-to-one; spending $136 per transaction.
Deeper analysis also reveals that the consumer may no longer be favoring the stereotype for consumption of cannabis. In 2016, demand for flower products in adult-use markets fell from 85% in January to 64% in December. In medical markets, flower share of market fell from 87% to 65%. These numbers indicate the consumers’ openness to experiment with products, delivery methods as well as the maturation of the consumer market itself.
In 2017, medical marijuana sales are forecast to grow to $5.3 billion, accounting for 67% of total cannabis sales, and by 2025, medical sales in currently legal states are forecast to grow to $13.2 billion, at which point medical sales will account for 55% of all sales. Comparatively, adult-use sales in 2017 are forecast to reach $2.6 billion, rising to $10.9 billion by 2025.
“Given the size of the market, knowing who your customers are, how and when they shop, and what they buy are fundamental building blocks of developing any effective retail strategy. This is simply one of the many fundamental market insights presented in our annual report,” added De Carcer.
The Cannabis Industry Annual Report: 2017 Marijuana Outlook provides readers with the latest business intelligence to stay on top of the rapidly changing cannabis industry. Cannabis investors, operators and policy makers in more than 50 countries have turned to New Frontier Data for insights into the industry. Here are just a few of the topics covered in The Cannabis Industry Annual Report:
- National and State-level Market Sizing & Revenue Projections
- Federal & State Regulatory Policies
- Product and Industry Trends
- Developments in Public Markets
- Medical Cannabis Research & Innovation
- Potential Impact of New Administration
- Expansion of Legalization into International Markets
The report analyzes the market’s growth forecasts, potential U.S. job creation, explores consumer sentiments towards cannabis in a new national poll, examines the impact of cannabis on the current opioid epidemic crisis and much more. The report is sponsored by Electrum Partners, an advisory firm specializing in medical and recreational cannabis and ancillary businesses.
“The market does not just hold grand potential, the data points to the potentials in our evolving landscape that make business intelligence so critical in making good decisions,” said Leslie Bocskor, Founder and President of Electrum Partners.
The Cannabis Industry Annual Report leverages New Frontier Data’s advance analytics along with the breadth of newly available industry data to deliver fresh insight to the latest realities and expansive possibilities of legalized cannabis. The report explores market numbers for all states where cannabis is legal and the evolving national perceptions of cannabis and how social and demographic changes in the U.S. are fueling the rapid increase in support for legalization. It is available on New Frontier Data’s website for sale at $597.
Reporters can request a copy of the report by contacting our PR team: NFD@PReturn.com.
About New Frontier Data:
New Frontier Data is an independent, technology-driven analytics company specializing in the cannabis industry. We offer vetted data, business intelligence and risk management solutions for investors, operators and policymakers. New Frontier’s data and reports have been cited in over 50 countries around the world to inform industry leaders. Founded in 2014, New Frontier is headquartered in Washington, D.C. and an additional office in Denver. For more information or media inquiries, please visit http://www.newfrontierdata.com or contact our PR team: NFD@PReturn.com.
About Electrum Partners, LLC:
Electrum Partners is a pioneering leader in strategic management, advisory services, and entry and expansion opportunities for publicly traded and private companies in any sector of cannabis industry and its ancillary businesses. Electrum Partners’ reach encompasses hemp, legal medical marijuana and recreational marijuana (including marijuana pharmaceuticals, nutraceuticals and biotech), technology, ERP (enterprise resource planning), retail sales, processing and cultivation, ecommerce, unique brands, edibles manufacturing, intellectual property, finance, banking and complex issues management. Electrum Partners enables cannabis entrepreneurs and businesses of all sizes to create and capture shareholder value by capitalizing on the diverse and emerging opportunities in the cannabis industry throughout the United States and international markets. Electrum Partners maintains membership and relationships with key industry groups including MPP, DPA, NCIA, Arcview, Red Estatal de Mujeres Antiprohibicionistas and Women Grow.