Marijuana Business Magazine May-June 2019

Marijuana Business Magazine | May-June 2019 50 Consistently dosed, cannabis-infused food and beverage products with inven- tive flavor profiles will continue to win with consumers, manufacturers agree. But leveraging emerging science and technology—and tracking trends in the mainstream food and beverage industries—will likely generate innovative products that draw more new consumers to the cannabis sector. More customers, in turn, will lead to greater sales and profits, and allow infused product manufacturers to stay ahead of rivals. Infused manufacturers and industry experts predict the following products and trends will become more widespread among edibles, beverages, tinctures and other infused offerings: • Ingestible products that allow consumers to more rapidly absorb THC and CBD and experience the effects of both substances. • Water-soluble, mix-and-serve beverage powders. haking up your cannabis-infused product line is one way to appeal to new consumers and excite loyal brand enthusiasts. But where do you start? Products CONCENTRATION OF TOTAL SALES BY BRAND RANK* Top 5 Brands Brands 6-10 Brands 21+ Brands 11-20 • Sales of ingestible products are growing at a steady rate, said Liz Connors, director of analytics at Headset, a Seattle-based data analytics company that focuses on the cannabis industry. • There’s also an uptick in the number of consumers who reportedly prefer ingestible products over cannabis flower or concentrates as well as an increase in the number of consumers whose first cannabis purchase is ingestible products, she noted. • The ingestible products sector is crowded, but retailers remove underperforming products from their shelves and add new ones every month to meet demand. This suggests there are opportunities for new brands to capture market share. • You should know: Other data show consumers are price-conscious, largely avoiding ingestible products sold for $35 and more. Products priced at $15-$25 appear more attractive to consumers. • Sales of gummy products, chocolate and hard candy outpace all other categories. These are crowded fields, and it is difficult for new brands to capture market share. Don’t be afraid to innovate—and don’t ignore the growing interest in cannabis-infused beverages. Beverages 80% 15% 4% 1% Edibles 53% 19% 17% 12% * Only in dispensaries where Headset tracks data. TAKEAWAYS Other 47% 11% 29% 13% Source: Headset