Leading Cannabis Industry Developments to Observe in 2022

Cannabis blossoms are the only edible part of the plant in legal cannabis states. Cannabis fans choose less invasive ways of consumption.

FREMONT, CA: The legalization of cannabis for recreational use in more than 18 U.S. states and Canada has prompted the industry to develop enticing products to meet customer demand.

Cannabis flowers are not the only cannabis product eaten in jurisdictions with legal cannabis. Cannabis fans are increasingly adopting less invasive methods of consumption.

The market share of flowers is dropping in both the United States and Canada. Sublingual strips are generating substantial growth in the tincture and sublingual sector in Canada. Lastly, the beverage category is one of the few product categories in which market share increased in both the United States and Canada.

The market share of flowers is dropping in both the United States and Canada. Sublingual strips are generating substantial growth in the tincture and sublingual sector in Canada. Lastly, the beverage category is one of the few product categories in which market share increased in both the United States and Canada.

The cannabis flower market share is falling: Surprisingly, the flower category's market share decreased in the U.S. and Canadian markets in 2021. Flower's market share fluctuated in the United States because of the COVID-19 epidemic. The category's market share increased in 2020 but began to decline in 2021. Over the past two years, the flower industry's market share in Canada has progressively declined.

In late 2021, the top 10 percent of Flower customers accounted for 60 percent of U.S. Flower sales and 78 percent of Canadian Flower sales. In the period between the middle of 2020 and the middle of 2021, heavy flower consumers spent the most money before the value began to decline in late 2021. Spending on flowers continued to decline in the United States, but it increased in Canada.

The decline in the flower industry's market share is probably not attributable to a decrease in demand, but fewer consumers may choose flowers. Still, basket penetration, the primary retail driver, is lower in Canada than in the United States, indicating that Canadian customers who purchase flowers purchase a more significant quantity per transaction.

Despite this interesting subtlety in the data, the most significant conclusion is that Flower products appear in a decreasing proportion of cannabis sales in Canada over time.

Cannabis use remains the most convenient method in both nations, but at a lower rate than in the past.

The cannabis beverage industry is expanding: The purchase of cannabis-infused beverages is rising, according to the survey. In the United States, beverage basket penetration quadrupled from 2 percent in 2020 to 3.7 percent in 2021. In Canada, the unemployment rate remained relatively stable during the preceding year at around 4 percent, but reached an all-time high of 4.5 percent in 2021.

The tincture and sublingual market in Canada is increasing: The top five product categories in Canada consist of tinctures and sublingual, pre-rolls, topicals, concentrates, and flowers (and ground flowers). Even though hybrid strain Pre-Rolls and ground flowers performed exceptionally well, tincture and sublingual products dominated the Canadian market.

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