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Cannabis Edible Leaders On The Sector's Future: 'Very Convenient To Consume'

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Cannabis Edible Leaders On The Sector's Future: 'Very Convenient To Consume'

Backed by shifting customer preferences during the COVID-19 pandemic, cannabis edibles are eating into the market share of other weed format.s 

Now, the industry is left wondering if growing edible interest is a passing trend or a sustainable market shift.

Recent Edible Market Trends: Liz Connors, director of analytics for data intelligence company Headset said that consumers want a consistent, reliable product overall. 

"Brands that deliver a consistent experience will do well," she said.

It appears that customers remain interested in classic edible options, like candy and gummies, in recent months.

Cannabis marketplace LeafLink reported a 14% uptick in edible and ingestible sales during March, compared to the month prior.

"Since then, this category has maintained an average monthly market share of 18.73%, with gummies making up more than half of all edibles and ingestibles," CEO and co-founder Ryan Smith told Benzinga.

While gummies have been a popular product on LeafLink since March, sales dropped 65% in May, while hard candy sales increased 63% on the digital marketplace.

Everett Knight, EVP of corporate development and capital markets for Valens Groworks Corp (TSE: VLNS), said gummies and beverages will be high earners going forward.

"Gummies come in a ton of different varieties, sizes and flavors and are very convenient to consume. Same goes for beverages, which can be consumed with ease in social settings like dinners or gatherings," said Knight.

Valens recently launched a series of THC and CBD beverages under a white label agreement with A1 Cannabis Company.

Rather than crediting the pandemic for shaping the market, Knight highlighted other recent developments, including Canada's Cannabis 2.0 rollout. 

A Weed Chef On The Maturing Edible Market: Chef Lauren Gockley is the director of edibles for Coda Signature. Gockley and Coda recently released a seasonal trend report that forecasts brands creating collections around season-driven tastes over rehashing formulas each year.

The chef acknowledged the difficulty of forecasting beyond the short-term. That said, Gockley sees the edibles market maturing.

"We are watching the edibles industry mature and become more like traditional industries, such as fashion and retail, and those industries have to forecast months into the future to stay ahead of the trends," Gockley said. 

According to Gockley, bold and experimental flavor pairings are on tap this summer, especially for those craving nostalgic experiences.

"We're living in challenging circumstances, and flavor is a powerful thing — it can transport you back in time or to a different place."

A Lasting Edible Trend?:The market appears split on the future of edibles and its market share.

Some, like Ryan Crandall, SVP of sales and chief product officer at Marimed Inc. (OTCMKTS: MRMD), expect the uptick to last.

"We believe the vast majority of new cannabis consumers want to be health-conscious and improve their lives, and we believe that edibles provide an avenue for consumption more in alignment to these consumers than smoking or vaporization."

Coda Signature's Gockley agreed, citing consumer familiarity as a critical factor for new consumers.

"Edibles come in familiar formats, from confections to beverages, and as more people open up to cannabis for the first time as an alternative for well-being and recreation, it's helpful to have that familiarity when trying something new," the chef said. 

Not all expect to see continued growth in the market.

LeafLink's Smith noted a 20% decline in sector sales during the summer months of 2019. "Based on this information, it seems likely that the popularity of edibles and ingestibles products will decrease again as we enter the summer months."

Others, like Valens' Knight, also see a downturn ahead while remaining optimistic for the sector, particularly in Canada.

Factoring in a drop in interest as COVID-19 consumer price restrictions ease, Knight believes there is an immense opportunity in oil-based products.

 "We're still in first-gear in regards to growth of oil-based products in Canada," Knight said. "We expect to see a lot more."

Related links:

Cannabis 2.0: The Companies Entering Canada's New Edible, Concentrate, Topical Market

Marijuana Edibles: A Better Option Than Smoking Weed During The COVID-19 Pandemic?

Photo courtesy of Aurora Cannabis. 

 

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