Cannabis Industry Research
To obtain an overview on the cannabis industry specifically focused on how it is being slowly legalized in the United States. This research will focus on the states where it is legal right now and for those states find out which companies are selling THC-free products like CBD, and to know how the buying and the selling of cannabis will change as it becomes legalized in more and more states. To determine if there are any Canadian-based companies coming to the US to know where CBD is being sold in the largest amounts.
Cannabis Industry Research: Overview
- In 2018, US consumers spent over $10 billion on cannabis products and is projected to exceed $23 billion in 2022.
- By 2019, 14% of adults use CBD-infused products. These products have only been legal since the 2018 farm bill.
- The top four reasons why adults use these products include:
- Nonspecific pain, 40%
- Anxiety, 20%
- Sleep/insomnia, 11%
- Arthritis, 8%
- In general terms, 58% of US adults use these products to manage pain while 42% use them to combat mental health-related conditions.
- The most popular product type is baked goods (40%) followed by Gummies (29%).
- The main factor in the consumers decision process is the product form (52%) followed by the potency (41%).
- About 45% do not have a brand preference.
- The greatest recognizable consumer preference market share was at 5%. This shows that there is an opportunity for a brand to rise above the crowd and be recognized.
- Consumers buy these products from:
- CBD brand website (31%)
- Cannabis dispensary (31%)
- Online retailers (24%)
- Natural health foods store (21%)
- Drugstore or grocery store (32%)
- The main source of information for consumers is:
- Online personal research 43%
- Trial and error 39%
- Recommendations from friends or family 39%
- Dispensary associate 27%
- Health store employees 16%
- Physicians 11%
Proposed next steps:
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