A recent report by Numerator, a first-party consumer-sourced data company, offers in-depth insights into the behaviors and profiles of contemporary cannabis consumers.
The study, which surveyed nearly 6,000 current and past users of THC and CBD highlights significant differences in consumer demographics, usage patterns and spending habits. Investors looking to capitalize on the growing cannabis market should pay close attention to these findings.
Who Is Using Cannabis?
The report reveals distinct user profiles for THC and CBD consumers, with the former tending to be younger Gen Z and Millennials, with 61% using cannabis daily or weekly.
In contrast, CBD users are generally older, with a significant portion being Baby Boomers who consume CBD less frequently, typically less than weekly.
This age disparity translates into different spending habits, with THC users spending between $26 and $100 monthly, while CBD users spend less than $25.
Why People Choose Cannabis?
Stress relief, sleep and pain management are the top reasons for cannabis use, marking a distinction between THC and CBD users. While 62% of THC users cite stress relief, 57% of CBD users use it for pain management. Recreational and social purposes are more prevalent among THC users, reflecting its broader appeal for various activities.
How Much Are People Spending?
Monthly spending on cannabis products varies significantly between THC and CBD users. Nearly half of CBD users spend under $25 per month, whereas over half of THC users spend at least $50 or more, with a third exceeding $100. This higher spending among THC users is likely influenced by purchasing from licensed dispensaries, where 61% of them shop.
Cannabis Consumption’s Future?
The report indicates a stable or growing market, with 83% of THC users maintaining or increasing their usage over the past year and 89% expecting to do so in the coming year. Similarly, 72% of CBD users maintained or increased usage last year, with 85% planning to maintain or increase their usage in the future.
Why This Matters For Markets And Investors?
The data from Numerator suggests that brands and investors should strategically target specific demographics with tailored products to maximize their market presence and optimize their sales strategies.
This data also helps investors evaluate which companies are well-positioned to capture market share and sustain growth by aligning their product offerings with the spending habits and preferences of high-value consumers.
When reading earnings reports, this market information helps investors interpret revenue trends and forecast future performance. By cross-referencing earnings data with consumer trends, investors can make more informed decisions, identifying companies that meet current market demands.
H/T: www.benzinga.com
