What's Hot This Valentine's Day? Weed Retail Trends, Sales Insights And Love-Driven Business Opportunities

Valentine's Day presents a promising growth avenue in cannabis retail, particularly in niche product areas like edibles and topicals, highlighted by BDSA analyst Brendan Mitchel-Chesebro in an exclusive with Benzinga Cannabis.

This period marks a unique market opportunity, underscoring the day's distinct appeal in the cannabis industry for romantic celebrations.

Consumer Behavior Insights

Despite not being the largest holiday for cannabis sales, Valentine's Day significantly influences the edible and topical segments. These categories, while accounting for a smaller share of overall sales, chocolates and beverages at roughly 1%, and topicals at just under 0.5%, experience considerable sales increases during the holiday.

Data reveals intriguing consumer behavior around Valentine's Day, with 37% of U.S. consumers preferring to consume cannabis with a significant other, highlighting the plant's role in enhancing couple's experiences.

About 56% consume on date nights, with a notable 44% always integrating cannabis into their romantic evenings. Consumption patterns show a preference for evening use, aligning perfectly with Valentine's Day activities.

Product Categories To Watch

Specifically, chocolates, massage oils and infused lubricants are highlighted as key product categories.

Chocolates saw a 13% increase in sales with minimal discounting, massage oils experienced a 19% sales boost with virtually no change in price, and infused lubricants, despite a 4% price increase, witnessed a 34% surge in sales. This suggests that strategic product selection and minimal discounting can significantly impact sales.

Effective Marketing Strategies

Discounts and promotions, while traditional tools, require careful consideration to avoid cannibalizing sales or diminishing profits. The data suggests a focused approach on specific categories like edibles and topicals can be more effective than broad discount strategies.

Additionally, understanding local consumer preferences and leveraging cross-promotions and themed marketing can further enhance sales without relying heavily on discounts.

"Discounts always come up... Let's discount that. Bring people in the door. You might be bringing people in the door but not enough to produce enough volume to see a profit. You might be discounting one brand or product and cannibalizing the sales of another brand or product," Mitchel-Chesebro explained.

"Making sure that pricing strategies are targeted and somewhat modest is important. Sometimes the discounting is not significant enough to yield greater than the number of consumers coming in the door or the number of volume moving to make it worth it," Mitchel-Chesebro said. "Focusing on certain edible categories and certain topical categories is the way to go."

Valentine's Day offers cannabis retailers a unique opportunity to capitalize on specific product categories that resonate with consumers looking for romantic enhancements. By leveraging consumer behavior insights and adopting targeted marketing strategies, businesses can maximize their holiday sales while minimizing the need for deep discounts.

"Relying too heavily on discounts is generally a bad strategy or can sort of bite you later down the line if you rely on it too heavily for too long. A lot of these topical products are much higher priced... You don't have to move a whole ton of volume to see profit with them," Mitchel-Chesebro added.

On Valentine's Day, the unique benefits of topicals, especially their health and wellness advantages, present a significant sales opportunity. With 51% of consumers turning to these products for pain relief and others for health management (31%), overall health improvement (28%), and sleep enhancement (26%), topicals align well with the holiday's focus on care and intimacy.

This period offers an ideal chance to market these products as thoughtful, wellness-oriented gifts, capitalizing on the demand for meaningful health-conscious options.

This shift towards wellness complements the day's romantic essence, making topicals an attractive choice for consumers looking to express love through the gift of health and comfort, alongside the more traditional relaxation and recreational benefits sought from inhalables.

Valentine's Day: Key Figures And Trends

Consumer Preferences And Behavior:

• 37% of all U.S. consumers report consuming cannabis with one other person.
• 56% of consumers report consuming on date nights, with 44% saying they always consume on date nights.

Time Of Consumption:

• For inhalable consumers, 62% consume later in the evening, the highest share for any time of day.
• Edible consumers: 44% consume later in the evening.
• Topical consumers: 43% report early evening consumption as the most common time.

Product Sales Lifts And Pricing:

• Chocolates saw a 13% boost in sales with only 4% discounting.
• Massage oils experienced a 19% sales increase with just a 1% price decline.
• Infused lubricants had a 34% sales increase, even with prices 4% higher than usual.

Edibles And Topicals Market Share:

• Edibles like chocolates and beverages make up about 1% of total sales.
• Topicals account for about 0.5% of total sales.

Benzinga Cannabis Conferences are coming to Los Angeles. Join the Benzinga Cannabis Market Spotlight: California, and unlock the future of cannabis at the premier networking event in Culver City on February 22. Connect with top industry leaders, gain insider insights into the investment landscape, and shape the evolving markets in California and beyond. Don’t miss this chance to be at the forefront of the cannabis industry’s growth and innovation! Join now. 

Photo: AI-Generated Image.