Peter Kanai

Guest Blog Cannabis Commercialization | How Companies Are Capitalizing on a New Market The legal cannabis industry is quickly becoming a booming market. As more states legalize medical and recreational marijuana, focus on cannabis commercialization has been growing every day. According to market projections, America’s legal cannabis market topped $6.5 billion in 2016 and is projected to grow up to $24 billion by 2025. While clear data-driven insights into consumers and the commercial uptake of cannabis products have been elusive, there’s no doubt that more companies are venturing into this new market. As the legal cannabis market matures, consumers are expected to enjoy more cannabis product options, delivery methods and changing dynamics in branding. Cannabis Products on the Rise With a growing market and a widening demographic that is taking more interest in medical and recreational cannabis products, more companies, both within and outside the cannabis industry are joining the legal cannabis market. Just some years back when states like Colorado and Washington legalized recreational marijuana, finding a reliable ​marijuana delivery service​ was hard. Today, you can find pot shops selling all types of cannabis products in these states as well as online delivery services. Companies are now selling products ranging from marijuana cupcakes, cookies, sodas to gummy bears. With the rising consumer influence, better delivery services and smart branding, companies are now able to target a wider market, but not without facing challenges from anti-cannabis activists and the potential problems related to uncontrolled use. Today, there are a variety of ways you can get high than there used to be. Some of the popular cannabis products available for purchase include: ● Flower​ - The traditional marijuana buds remain the most popular product among cannabis consumers, but the trend is changing fast. ● Edibles​ - Marijuana infused products comprise the fastest growing sector in the marijuana industry. This is where many companies are capitalizing on. ● Pre-rolled joints​ - These are the third most popular products being sold in legal pot shots. ● Concentrates​ - These include oils, dabs, hash, shatter, wax and more. ● Vapor pens​ - These are typically used to consume cannabis products. ● Cannabis beverages​ - Cannabis-infused drinks particularly popular with the younger consumers. ● Tinctures and sublinguals​ - Options are available for both medicinal or recreational use. ● Cannabis topical products​ - These are cannabis infused oils, lotions and balms. ● Cannabis capsules​ - Preferred by those who want to create their own DIY cannabis infusions. ● Multi-item gift sets​ - Known as ‘stoner gifts’, they include different pot-related items. Consumers are Spending More With stronger demand for quality edibles and concentrates, consumers are even spending more. Almost all states that have legalized medical and recreational cannabis have recorded steady tax revenues. This demand for cannabis products is what is drawing more companies into the market. With a willingness to try our new products, consumers have influenced a growing commercial interest in the cannabis market. Research based data from a top Colorado-based retail marketing platform used by more than 300 medical marijuana dispensaries and retail shops shows that consumer behavior has been changing gradually. The research also shows that medical cannabis patients are purchasing larger quantities of the product while recreational users purchase smaller quantities more frequently so they can sample the different strains and products on the market. How Pot-related Holidays are Driving Commercialization April 20 or 420 has long been accepted as the unofficial cannabis holiday. The powerful symbolism behind this self-declared holiday for pot lovers has been providing an opportunity for supporters and activists of cannabis to spread the word. Even during times of prohibition, it has given people a reason to come together. If you can’t wait until next year to celebrate the significant 4/20 cannabis holiday, there are other days you can also celebrate. CBD Day - February 1st CBD holds great promises for developing the medicinal benefits of cannabis. Specially bred strains are being sought after and research for their medical benefits and properties. February 1st serves as a celebration of CBD. Jack Herer’s Birthday - June 18th This ‘holiday’ commemorates the hard work, effort and energy that Jack Herer, a renowned cannabis activist put into advocating for cannabis legalization as one of nature's valuable resources. To honor this day, you can purchase several products named after his name. Oil and Concentrates Day (720) - July 10th Cannabis cartridges, concentrates and dabs have become more popular. Coined the 720 holiday, July 10th is quickly becoming the day to celebrate cannabis oils and concentrates. Flip 720 upside down and it reads ‘OIL’. Now you get it! If you love ​vaping marijuana​, this ‘holiday’ offers you an opportunity to dab your favorite cannabis concentrates with your friends and also celebrate the developments made in hash-making technologies that modern marijuana laws are encouraging. Commemorate the Victims of Prohibition - October 5th The United States enacted the Marijuana Tax Stamp Bill back in October 2nd, 1937, effectively outlawing marijuana. Three days later, the Denver Police and FBI arrested Moses Baca and Samuel R. Caldwell, both considered the first convicts of selling and possessing marijuana. This day remembers them, and the families distressed by cannabis prohibition. Legalization Day - November 6th November 6th, 2012 is the day that opened the door for legal, adult access to cannabis in U.S. The States of Colorado and Washington passed recreational marijuana laws recognizing cannabis as a regulated industry. This day celebrates the momentous turnaround that sparked many reactions about drug reforms. Holidays like these have not only gotten the attention of consumers but also many companies with an interest in the commercialization opportunities that the cannabis industry offers. Days before any of these holidays, you are likely to see more companies creating branded marketing campaigns that target cannabis consumers with a variety of products. Cautious Use of Marketing Slogans Although legal cannabis products have been around for some time, many companies joining the market are still hesitant on using cannabis-friendly slogans in their marketing campaigns. Why is this? Considering that cannabis commercialization has attracted businesses in mass market sectors like foods & beverages, many of the big-name brands are cautious with their language. It’s no secret that brands entering the legal cannabis market won’t even acknowledge the existence of pot holidays or directly mention marijuana, pot or cannabis in their marketing slogans. While it may seem unusual, these companies are trending carefully for fear of pushing away their customers. While there is no doubt that such holidays offer great marketing opportunities for their main products, trying our new opportunities or ‘special markets’ as they call them, is something that many brands are considering as a new venture in pot-friendly states. Is it that companies don’t want to fully embrace already accepted marketing concepts? Let's wait and see! The bottom line is, with a really good spending demographic in the cannabis market, we are likely to see more brands come on board as commercialization of cannabis continues to grow. In the meantime, though, don’t expect branding to be black and white. Humor may carry the day, but most brands are cautious not to go too far. Cannabis-Themed Food Ads Look at marketing slogans from brands like Totino’s, Burger King or other food & beverage brands that sell products on pot-holidays, and you’ll see a difference in their slogans. More and more brands are jumping on the cannabis holiday branding bandwagon to get a piece of the growing cannabis consumer market. From billboard advertisements to ads on buses, the move has been daring, but the reaction has been promising, yet controversial. On one hand, it proves that mainstream brands are starting to take cannabis commercialization seriously but on the other hand, the fact that big brands are willing to target consumers directly with bold statements, although a bit with humorous slogans, highlights the uneven playing field for cannabis businesses. Cannabis-themed ads have spurred numerous discussions in the market and will continue doing so as brands get even more creative and bold with their consumer marketing strategies, backed by legalization. Cannabis commercialization is the new frontier in the cannabis industry, and more companies will capitalize on the new market by appealing to marijuana consumers. Changing Cannabis Consumer Demographics A lot can be said about cannabis commercialization and its effects on the consumer market. Data from BDS Analytics, a leading cannabis market research firm shows ​changing demographics among cannabis consumers​. The research is based on a comprehensive survey of adults in California and Colorado. Data collected so far shows real differences between age groups, generations, men and women, attitudes towards the use of cannabis and the preferred methods of marijuana consumption. How these demographics influence the overall cannabis consumer market is yet to be fully analyzed, but interest by companies in other industries has been on the rise. Companies that deal with natural foods, alcohol, tobacco and even pharmaceuticals want to learn more about the cannabis consumer. Understanding the lifestyle and demographics of cannabis users is becoming a crucial step towards gaining knowledge that could be incredibly helpful for companies within and outside the legal cannabis industry. There is a consensus among marijuana consumer experts and branding companies that changing consumer demographics and the availability of credible data will have an impact in cannabis commercialization. Author Bio: …………………...is a recreational cannabis advocate who has been following developments in the cannabis industry for more than 10 years. He works with marketing agencies in Colorado to provide consumer market insights and also provides consumer tips on safe use of marijuana products. He’s also a lover of culture and arts. 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