Stifel Says Covid Cannabis Consumption Expected to Remain High Even After Pandemic

CANNANNEW REPORT

Cannabis consumption rose during the height of the COVID crisis as anxiety and lockdowns prompted many to increase the amount consumed. According to a new survey by Stifel, it doesn’t look like consumers are going to return to pre-pandemic levels of use. This is good news for cannabis companies. The survey also determined that cannabis remains a resilient category despite increasing options for discretionary spending as people ease out of COVID restrictions. The research firm surveyed both U.S. and Canadian cannabis consumers and said it reinforced its opinion that the U.S. landscape looks positive while suggesting a mixed outlook for Canada. The survey confirmed that price is more important to Canadians than to U.S. cannabis shoppers. It also learned that regular cannabis consumers continue to prefer flower, while new cannabis consumers prefer edibles, beverages, and topicals. Another key item in the survey said location is the most important element for store loyalty. “We believe these three categories have the potential to drive mainstream conversion given the accessibility, discretion, ease of use, and familiarity with Headset data suggesting stronger branding power for these segments versus inhalables.”  No Post Pandemic Change The Stifel survey found that post-COVID, 65% of consumers said they expect to maintain consumption with 17% suggesting increased consumption. “We believe increasing incidence and consumption by existing consumers will be consistent category tailwinds, but the Canadian market’s growth is predicated on the ongoing conversion of the illicit market through expanding retail access and product availability.” The report also noted that the edibles market in Canada has been difficult for producers and believes that the category won’t be fully successful without regulatory changes.  The category is fairly new, but producers face strict regulatory requirements. There are limits on THC levels and packaging limitations make it hard to build brand awareness. Edible…

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