Ready-To-Bake: Optimize Cannabis Retail Sales For Thanksgiving With BDSA's Basket Analytics

The Thanksgiving cannabis market exhibits a nuanced shift towards infused culinary products, presenting retailers with an opportunity to tailor their offerings and enhance consumer experience during the holiday season.

Brendan Mitchel-Chesebro, analyst at market research firm BDSA, sheds light on Thanksgiving cannabis market trends.

Thanksgiving-Specific Retail Cannabis Trends

In an exclusive interview with Benzinga, Mitchel-Chesebro highlighted the evolution of cannabis-infused culinary products. In 2021, the culinary category witnessed a substantial 121% increase in sales on Green Wednesday (the day before Thanksgiving) compared to the average for November.

The trend continued into 2022, with a 155% increase on the day before Thanksgiving.

Comparatively, the edibles category, encompassing baked goods and cooking ingredients, experienced a 66% increase in sales on Green Wednesday in 2022, showing a noticeable dip from the 2021 peak.

This indicates a shift in consumer preferences toward infused foods that are ready to consume, showcasing a 55% increase in 2022.

For cannabis retailers, these insights underscore the importance of optimizing shelf space for infused culinary products.

As consumers seek convenient, prepared options for Thanksgiving, retailers can capitalize on this trend by strategically placing and promoting infused foods. With Green Wednesday emerging as a key sales day, retailers should ensure ample stock and promotions to meet heightened demand.

Culinary Cannabis: A Niche With Growth Potential

The culinary cannabis category, though still small, holds promise for retailers looking to diversify their offerings.

With strategic assortment planning, promotions and an eye on emerging consumer trends, retailers can tap into the growing demand for cannabis-infused culinary delights, especially during the holiday season.

Mitchel-Chesebro delved into advice for retailers seeking to enhance their assortment in the burgeoning culinary cannabis category.

Basket Analytics: How To Optimize Your Cannabis Assortment On Thanksgiving

To optimize assortment, Mitchel-Chesebro recommends identifying top-performing products within the limited pool of culinary brands.

BDSA’s basket analytics reveal that consumers adding culinary items are more inclined to purchase related edibles, emphasizing the importance of strategic product placement.

Careful consideration of promotions and merchandising strategies, particularly cross-purchasing with chocolates, infused foods and beverages can amplify overall sales.

Geographically, the culinary cannabis market is still evolving, with more mature markets like California leading the way, followed by Arizona, Colorado and Massachusetts.

Despite its small footprint, this niche presents an opportunity for expansion, especially in newly legalized adult-use markets.

Ready-To-Bake

Highlighting subcategories within culinary cannabis, such as infused butter and oils, Mitchel-Chesebro stressed the potential for growth in ready-to-bake products like pre-infused baking mixes.

These products offer higher dosages and convenience, catering to both experienced and novice cannabis consumers.

As the culinary cannabis market continues to develop, seasonal and holiday-themed products are emerging.

Brands like Kiva Confections offer unique items like turkey gravy, indicating a trend toward incorporating familiar Thanksgiving flavors into cannabis-infused products.

Consumer Insights: Preferences, Drivers, Pricing And Potential Innovations

Although a relatively small sector, accounting for less than 1% of total edible sales, culinary products witnessed a notable surge during the Thanksgiving season.

The culinary cannabis market offers opportunities for expansion through strategic marketing, consumer education and product innovation.

BDSA’s data shows that 42% of edible consumers prefer THC doses of ten milligrams or less.

This insight underscores the importance of clear dosing instructions and consumer-facing information for culinary products, especially those with higher THC concentrations.

With 40% citing taste as a primary reason for consumption, Mitchel-Chesebro suggests that emphasizing a product's cannabis-free taste, akin to regular culinary ingredients, could be a valuable marketing strategy.

Consumption Preferences

• Culinary products are chosen by 16% of edible consumers, ranking as the sixth most preferred.
• Baked goods, at 41%, stand as the second most favored after gummies.

Consumer Drivers

• Taste and flavor considerations are key factors in consumer choices.

Innovation Potential

• Ready-to-bake products with convenience and higher dosages are seen as a growth area.

Geographic Price Trends

• New York and Missouri reflect higher prices in the culinary cannabis market.
• Illinois, despite limited products, has the lowest prices.

Photo by Jed Owen on Unsplash.