With summer in full swing and the 4th of July around the corner, activities around the country have taken on an even more festive glow as public venues are finally reopened after the long gloomy closures of the pandemic.
BDSA, the leading market research company that covers cannabis markets in the US, Canada and abroad, says that this year's Independence Day will bring in a double-digit increase in daily dollar sales for the days leading up to the 4th of July, likely amounting to the highest daily dollar sales total for any day this summer.
BDSA, which defines cannabis as a “sticky” good, that is one of the last products dropped by consumers looking to cut costs. Given that many consumers will stay at home due to high fuel costs, cannabis will likely become the perfect complement to the 4th of July weekend.
“As more consumers get out and enjoy some summer fun, we believe sales trends this 4th of July will parallel what we saw during last year’s holiday,” said Roy Bingham, co-founder and CEO of BDSA. “BDSA predicts that Independence Day will rank as the top performing day this summer when it comes to cannabis dollar sales.”
BDSA’s Summer Cannabis Insights
- Despite concerns surrounding inflation, sales have shown that cannabis is consistently one of the last products consumers cut down on when pruning costs. Hence, it will likely remain a must-have over the 4th weekend.
- In California last year, the Friday preceding Independence Day saw the highest daily dollar sales for any day that month, with sales totaling 30% more than the daily sales average for July 2021.
- BDSA Retail Sales Tracking shows that the number of cannabis beverage brands increased ~25% between Q1 2020 and Q1 2022 and that social gatherings and warm weather could boost beverage sales across mature markets.
- 56% of all alcohol consumers aged 21 and over also consume cannabis, a 7% increase since Q4 2020.
- Cannabis may challenge craft beer’s space on the holiday weekend, says BDSA, as nearly 40% indicate summer celebrations where craft beer is typically consumed are also cannabis occasions.
30% Increase in Daily Sales
July 4, 2021, was a major event for cannabis sales, as a freshly vaccinated consumer base was excited to get out and enjoy some fun in the sun. In California, the Friday preceding Independence Day saw the highest daily dollar sales for any day of that month, with sales totaling 30% higher than the daily sales average for July 2021.
What About Beverages?
The emergence and expansion of new brands combined with social gatherings and warm weather could boost beverage sales across mature markets.
While beverages remain a small percentage of total cannabis retail dollar sales (1-2%), beverage availability has greatly increased over past years, with BDSA Retail Sales Tracking showing that the number of beverage brands has increased ~25% between Q1 2020 and Q1 2022.
Cannabis VS. Alcohol
BDSA Consumer Insights data from Q4 2021 shows that 56% of all alcohol consumers aged 21 and over also consume cannabis, a 7% increase since Q4 2020. The company expects co-consumption of cannabis with alcohol to be a part of the summer celebrations.
“Beer, particularly craft beer, is a common beverage for these situations. Cannabis may challenge craft beer’s space on the holiday weekend, as nearly 40% indicate these moments are also a cannabis occasion,” BDSA told Benzinga in an email.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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