Nurturing new growth Canada gets ready for Cannabis 2.0 Table of contents
Introduction 1
Cannabis 2.0: Canadian survey insights 4
Perspectives on Cannabis 2.0 22
The way forward: Thriving in a Cannabis 2.0 world 30
Remain bold 32 Nurturing new growth | Canada gets ready for Cannabis 2.0 | Introduction
Introduction
ll eyes remain on Canada as it prepares for the next stage of cannabis legalization—a step that will keep A the country firmly at the vanguard of a societal revolution and a new industry exploding with potential. “Cannabis 2.0” will see edibles containing cannabis and cannabis concentrates become legal on October 17, 2019. Their legalization will mean seven classes of cannabis products will be approved for sale in Canada, as dried cannabis, cannabis oil, fresh cannabis, cannabis plants, cannabis plant seeds, were legalized in 2018. The speed with which Canada’s cannabis industry has evolved over the past 18 months has been truly remarkable. In this, our third annual report on Canada’s cannabis industry, Deloitte has taken a broader approach in our research. As in previous years, we conducted comprehensive market research to understand Canadian consumer sentiment on cannabis edibles and other alternative products coming with Cannabis 2.0 legalization. The introduction of these new products is creating new opportunities in product mixes, reaching new cannabis consumers not fully comfortable with traditional consumption methods currently available.
1 Nurturing new growth | Canada gets ready for Cannabis 2.0 | Introduction
As well, we explore trends and Our research suggests that the new However, we do need to acknowledge issues affecting the cannabis sector, alternative cannabis products becoming that Canada’s legal recreational drawing on extensive interviews and legal in late 2019 will be a significant cannabis industry is still in its infancy. conversations with stakeholders opportunity for players in the cannabis “Cannabis 1.0” legalized combustible across the industry. Where possible, market. The new options will address cannabis, cannabis oils, and cannabis we leveraged Deloitte’s recent strategic consumer interest among current and plants and seeds only a few months alliance with Headset, the leading likely Canadian cannabis consumers. ago, and provincial governments, cannabis data and analytics provider, Deloitte estimates that the Canadian licensed producers, licensed retailers, and Nielsen, a global measurement and market for edibles and alternative R&D facilities, analytic testing facilities, data analytics company,1 to draw on cannabis products to be worth C$2.7 financial institutions, and consumers US data in order to compare and billion annually—with cannabis extract- are still navigating this new landscape. contrast the Canadian and US based products including edibles Cannabis 2.0 will undoubtedly be cannabis markets. Finally, we offer accounting for C$1.6 billion alone. a “slow burn” at first, but as more our perspective on how companies Eleven percent of Canadians already products become available we’re can win in the cannabis market consume cannabis edibles and other confident it will catch fire and gain while the industry is still forming. We alternative products, and 13% of momentum. Cannabis 2.0 will position believe that cannabis players need to Canadians are expected to buy them, as Canadian companies and talent for build strong business fundamentals edibles and other alternative products global growth—even as the US market as the regulatory and business that offer a more discreet and accessible gains momentum. environment settles, requiring patience, way to consume cannabis and avoid any perseverance and confidence—along stigma surrounding smoking cannabis. There will be missteps, delays, and with a well-developed business strategy With almost one in four Canadians frustration. This is to be expected in backed up by hard data. consuming or likely to consume an industry that just launched and is cannabis edibles and other alternative becoming more adept at navigating the cannabis products, legalizing these need to balance consumer education products should clearly create valuable and consumer experience while There will be missteps, new growth opportunities for Canada’s operating in a tightly regulated market. cannabis sector. It will also help maintain All the players involved share the same delays, and frustration. Canada’s leadership position in an goal: to nurture a safe, controlled This is to be expected industry where the top cannabis and thriving industry that protects markets globally2 are, by Deloitte’s consumers, creates jobs, and generates in an industry that just estimate, worth US$100 billion today— economic activity at home and abroad. launched and is becoming reaching US$194 billion by 2025.3 If Canada chooses to be bold and capitalize on the early advantages it more adept at navigating Diligence and patience will be needed currently enjoys, Canada could seize the the need to balance across the Canadian market as the opportunity to lead the way. regulatory framework for edibles and consumer education and alternative cannabis products evolves in consumer experience the runup to October 2019. As the while operating in a industry settles, Deloitte believes the strong growth potential for legal edible tightly regulated market. products will drive increased mergers and acquisition activity in the industry.
2 Nurturing new growth | Canada gets ready for Cannabis 2.0 | Introduction
About our research The research for our third annual look at the Canadian cannabis industry comprises three parts.
• Deloitte conducted an online survey of 2,000 Canadian adults about their current and intended use of edibles containing cannabis, cannabis concentrates, cannabis-infused beverages, and cannabis topical ointments or creams, tinctures, and capsules. The survey was conducted between February 26 and March 11, 2019, and was designed to be nationally representative in terms of age, gender, and geographic region.
• In March 2019, Deloitte professionals conducted in-person interviews with a number of individuals closely connected to Canada’s burgeoning cannabis industry. They shared their insights on the cannabis industry from a variety of perspectives: government regulators, industry associations, licensed producers, investment advisors, cannabis retailers, and cannabis innovators.
• Through Deloitte’s strategic alliance with Headset, the leading cannabis data and analytics provider,4 we accessed point-of- sale data from cannabis retailers in Colorado, Washington, Nevada, and California for the period between March 2016 and February 2019. This data provided insights into US experiences around cannabis legalization, which serve as a useful point of comparison with the Canadian market.
Our survey work is prospective, and based upon respondents’ preferences and estimating the consumer market demand and market sizing.
3 Nurturing new growth | Canada gets ready for Cannabis 2.0 | Cannabis 2.0: Canadian survey insights
Cannabis 2.0 Canadian survey insights
What do Canada’s current and likely cannabis consumers expect from Cannabis 2.0? What products are they most interested in? How much are they likely to spend on these new products—and to what extent will that spending take away from their spending in other areas such as alcohol? To gain insights into what Canadian cannabis consumers are thinking, we undertook a survey of 2,000 Canadian adults in early 2019, comparing the data with information provided by Headset to identify similarities and differences between US and Canadian markets.
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Nurturing new growth | Canada gets ready for Cannabis 2.0 | Cannabis 2.0: Canadian survey insights
5 Nurturing new growth | Canada gets ready for Cannabis 2.0 | Cannabis 2.0: Canadian survey insights
Edibles and extracted products The second segment stakeholders to power Cannabis 2.0 market expect to see take shape will Deloitte estimates that the annual include novice or “cannabis-curious” Canadian market for edibles and consumers—an older group, often alternative cannabis products is worth female, who had little interest in C$2.7 billion. The vast majority of this combustible cannabis products and burgeoning Cannabis 2.0 market will be preferred to wait for Cannabis 2.0 cannabis extract-based products, offerings. In our 2018 report, we including edibles, which we estimate at identified a similar demographic— C$1.6 billion alone. Yet there is the “conservative experimenter,” significant opportunity elsewhere, typically middle-aged and university including cannabis-infused beverages educated, focused on family needs (C$529 million), topicals (C$174 million), or other responsibilities, and more concentrates (C$140 million), tinctures likely to consume cannabis less than (C$116 million), and capsules once a month.7 These consumers are (C$114 million).5 expected to gravitate towards more familiar formats, especially edibles Realizing this sizeable market potential such as baked goods, confectionary, will take some time, since many of and teas. The low dosages available these products may not be available— in edibles and microdosing are ideal or available in sufficient quantity— for these consumers, offering a come October. more comfortable launching point for their cannabis experience. Industry stakeholders foresee shifts in consumer segments The industry stakeholders we interviewed view Cannabis 2.0 as a catalyst that will see Canadian cannabis consumers diverge into two broad segments. One segment will The risk taker comprise current, more experienced cannabis consumers—Millennial or younger consumers who already use flower products. In many ways, this demographic is likely to line up with the “risk taker” profile we identified in our 2018 cannabis report: young, typically with a high school or college The conservative experimenter education, often consuming cannabis several times a week.6 This group is expected be more interested in potent cannabis concentrates that may not be available post-legalization.
6 Nurturing new growth | Canada gets ready for Cannabis 2.0 | Cannabis 2.0: Canadian survey insights
The current and likely user
More likely to be More likely to be between the ages of 18-34 between the ages of 35-54
More likely to More likely to consume multiple consume less than times a week once a month
The risk taker The conservative experimenter More likely to have a More likely to have a maximum education of maximum education of high school or college university or graduate school The current recreational The likely cannabis user cannabis user (following legalization)
More likely to Less likely to be an deviate from the online influencer and letter of the law have a large social network
More likely to take Less likely to prioritize health and safety risks personal interests ahead to enjoy life and have of family interests a fuller experience
7 Nurturing new growth | Canada gets ready for Cannabis 2.0 | Cannabis 2.0: Canadian survey insights
Edibles, topicals, infused beverages poised to be the hot new cannabis products
Use of alternative cannabis products among current and likely users
Percentage of Percentage of respondents who likely users who currently use intend to use on a weekly basis Likely Canadian Flower 29% NA* cannabis consumers Vapes 11% NA* are especially eager to Concentrates 9% 26% try three new cannabis Edibles 8% 59% formats: edibles, Pre-rolled joints 7% NA* topicals or ointments, Topicals 7% 53% and cannabis-infused Tincture & sub-lingual 5% 23% beverages. Capsules 4% 28%
Beverages 3% 37%
* These formats were not asked to likely users
Likely Canadian cannabis consumers Ontario men aged 18-34 appear to be Current consumers rate cannabis are especially eager to try three new the most likely to consume new edible gummies as their preferred edible cannabis formats on: edibles (59%), products, while beverages and tinctures format (26%), followed closely by topicals or ointments (53%), and appeal more to a younger demographic. cookies (23%), brownies (22%), and cannabis-infused beverages (37%). This It’s a different story for topicals, which chocolates (16%). Cannabis cookies are represents a growth opportunity for appeal to older consumers aged 55-75, likely consumers’ preferred edible (50%) cannabis-related businesses and a women, and those in Quebec. by the narrowest of margins, with 49% potential point of entry for established interested in brownies and 48% likely companies with this expertise, since Gummies, anyone? Cookies? to consume both chocolates current cannabis consumers tend to While their interest in edibles may differ, and gummies. lean towards more traditional current and likely cannabis consumers methods of consumption. largely agree on preferred edible formats: gummies, cookies, brownies, and chocolates.
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Use of edibles by current and likely users
Percentage of respondents currently using Percentage of respondents currently using or are likely to use at least everyor are 3 months likely to use at least every 3 months
26% Gummy bears 48%
23% Cookies 50%
22% rownies 49%
16% Chocolate 48%
12% Candy, lo enges, and gum 35%
10% Truffles 25%
8% Cake and pie 28%
7% Caramels, chews, and taffy 32%
7% avory-prepared meals 17%
6% Ingredients (cooking oil, flour, etc.) 19%
6% avory snacks 32%
5% ints 29%
5% thers 20%
4% Dried fruits, nuts, and granola 25%
4% Honey, sugar, and sweeteners 21%
0 10 20 30 40 0 0
Current users ikely users
9 Nurturing new growth | Canada gets ready for Cannabis 2.0 | Cannabis 2.0: Canadian survey insights
Canadian cannabis Likely consumers appear to be much Regionally, consumers’ preferences tend more interested in exploring a wide to mirror these nationwide figures, but consumers are eager variety of edible formats compared to there are some notable differences. to try many forms of current consumers. While 35% of likely Current consumers in Western Canada consumers are interested in cannabis are more likely to consume cannabis- cannabis edibles. candies, lozenges or gum and 32% say infused gummies (31%), cookies (25%), they’d try savory snacks, chews and brownies (24%), candies (15%), and taffies, current consumers aren’t as cakes and pies (11%) than their peers inclined to do so: only 12% of current nationally. Current Ontario consumers consumers are interested in cannabis are slightly more likely to consume candies; 7% say they’d consume cannabis cookies (26%). Current caramels, chews, or taffy; and a mere consumers in Quebec and Atlantic are 6% appear interested in savory less likely than their peers nationally to cannabis snacks. consume gummies (18% in each case), brownies (18% and 15% respectively), cookies (16% and 15% respectively), or chocolate (13% and 12% respectively).
Regional cannabis edible preferences among current consumers
Percentage of respondents currently using at least every 3 months
Total West Ontario Quebec Atlantic Caramels, chews, and taffy 7% 8% 5% 5% 9% Cake and pie 8% 11% 6% 9% 6% Truffles 3% 6% 3% 2% 3% Ingredients (cooking oil, flour, etc.) 6% 10% 3% 4% 6% Savory prepared meals 3% 2% 3% 4% 3% Gummy bears 26% 31% 26% 18% 18% Dried fruit, nuts, and granola 4% 4% 2% 6% 3% Mints 5% 6% 3% 7% 6% Brownie, blondie, and cereal bars 22% 24% 22% 18% 15% Savory snacks 6% 8% 4% 7% 3% Chocolate 16% 14% 20% 13% 12% Cookies 23% 25% 26% 16% 15% Honey, sugar, and sweeteners 4% 4% 3% 4% 3% Candy, lozenges, and gum 12% 15% 9% 13% 12% Other edible cannabis products 5% 8% 3% 3% 6%
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Among likely cannabis consumers, those (24%). Among likely Atlantic consumers, in Ontario are more likely than their cookies are quite popular (56%) as are national peers to consume brownies cakes and pies (33%), and fruits, nuts, (53%), cookies (53%), chocolates (52%), and granolas (29%). However, Atlantic and caramels, chews and taffy (37%). Canadians are decidedly not interested Likely consumers in Western Canada in cannabis savory snacks or mints (23% also display a slightly higher interest in each case), cooking ingredients (15%), in gummies (51%) than nationally— or honeys and other sweeteners (13%). but they’re less interested in savory prepared meals (14%) or dried fruits, While Canadian cannabis consumers— nuts, or granolas (22%). Likely Quebec especially likely ones—are clearly eager consumers, on the other hand, are to try many forms of cannabis edibles, more likely than their national peers to it’s clear that cannabis companies will try savory prepared meals (22%), but need to manage expectations, since the they’re far less interested in gummies edible formats Canadians want may not (37%) or caramels, chews, and taffy all be available in October.
Regional cannabis edible preferences among likely consumers
Percentage of respondents currently using at least every 3 months
Total West Ontario Quebec Atlantic Caramels, chews, and taffy 32% 33% 35% 24% 37% Cake and pie 28% 25% 28% 29% 33% Truffles 25% 24% 26% 25% 25% Ingredients (cooking oil, flour, etc.) 19% 16% 20% 21% 15% Savory prepared meals 17% 14% 18% 22% 15% Gummy bears 48% 51% 51% 37% 48% Dried fruit, nuts, and granola 25% 22% 27% 25% 29% Mints 29% 27% 31% 31% 23% Brownie, blondie, and cereal bars 49% 48% 53% 47% 42% Savory snacks 32% 30% 37% 28% 23% Chocolate 48% 45% 52% 42% 50% Cookies 50% 47% 53% 47% 56% Honey, sugar, and sweeteners 21% 22% 22% 22% 13% Candy, lozenges, and gum 35% 35% 35% 36% 31% Other edible cannabis products 20% 21% 21% 16% 21%
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Where do you consume cannabis—and with whom?
Current Likely consumers consumers With a small group of friends 54% 56% With a partner/family member at home 43% 55% Alone at home 35% 48%
In fact, safety is rated as Likely consumers see edibles Both current (53%) and likely (47%) as safer alternative and would consumers see edibles as a product to likely consumers’ most rather buy than make be consumed socially among a small important consideration Canadian cannabis consumers say group of friends. Nearly half (48%) of safety (66%) and product quality (52%) likely consumers say they’d consume across all edible formats, are the most important considerations alternative cannabis products at followed by product quality when buying edibles. Nearly half home, compared to 35% of current and being Canadian-made. (45%) of consumers say they’ll look consumers. Likely consumers are also for products that provide the level of more likely (55%) to consume products potency they want. with a partner or family, compared to 43% of current consumers. This For nearly one in three likely cannabis speaks to likely consumers’ desire consumers, edibles such as cannabis- to try cannabis products in a safe infused beverages are seen as a space—but it also reflects the fact safer alternative to other products. that likely consumers more commonly Interestingly, product safety is also cite relaxation, sleep, and stress or more important to female and older anxiety relief as a reason for consuming consumers; being Canadian-made cannabis products. is also more important to likely consumers over 35. The majority It is notable that current edible of survey respondents say they consumers say they are more likely to intend to purchase edibles from buy premade cannabis edibles rather government stores, licensed private than make their own—mainly because retailers, or licensed producers it’s more convenient, according to and manufacturers directly. 80% of current consumers. Those consumers who do prefer to make their own edibles say they do so to control the dose (71%) and be assured of cannabis quality (54%).
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Reasons forfor use use of of cannabis-infused cannabis-infused edibles edibles by bycurrent current and and likely likely users users
53% To have fun with friends 47%
41% To reduce stress or anxiety 43%
41% To help you relax or sleep 45%
41% To improve your mood 32%
37% As an alternative to alcohol 37%
35% Don't want to smoke/vape cannabis 43%
Is a safer way to use cannabis 18% than other alternatives 31%
22% To alleviate/treat specific pain or ailment 33%
0 10 20 30 40 0 0
Current users Likely users
Not surprisingly, brand does not yet As well, only 17% of consumers look play a key role in shaping consumers’ for organic cannabis products— edible preferences; only 13% of though organic products may be more respondents say they look for a familiar important for those buying ingredients brand. However, we do not believe for home-made edibles (e.g., honeys this reflects the potential for brands and cooking oils) than those buying to become an important force in premade edibles. consumers’ path to purchase in the years to come. Likely consumers also do not appear to be particularly price sensitive at this point: only 25% say they look for the lowest-price products.
13 Nurturing new growth | Canada gets ready for Cannabis 2.0 | Cannabis 2.0: Canadian survey insights
Terpenes could be an opportunity This suggests that a useful to educate consumers—and opportunity exists for the industry differentiate products to educate consumers about how Terpenes are the diverse aromatic terpenes impact cannabis product oils that give cannabis its distinctive taste—while giving cannabis smell as well as other unique scents companies a means to differentiate such as pineapple, strawberry, and products in various categories. coffee—yet they are relatively unknown among consumers. Only 14% of Will edibles cannibalize spending likely consumers say they’re aware in other areas? Not yet. And that of terpenes, while 14% of current means growth. consumers feel they are an important Both current and likely consumers consideration in choosing products. see cannabis gummies—which are Younger likely current consumers are widely available and readily accessible slightly more aware of terpenes (21% via the illicit market—as the most and 17%, respectively). expensive edible product. Current consumers report spending nearly $16 monthly on gummies, more than on other edible categories.
14 Nurturing new growth | Canada gets ready for Cannabis 2.0 | Cannabis 2.0: Canadian survey insights
However, the industry stakeholders we Will Cannabis 2.0 cannibalize Cannabis spoke to believe it’s highly unlikely that 1.0 sales? Not yet, according to our cannabis gummies will be made legally research. Fewer than one in five current available. Likely consumers expect or likely respondents say their edible to spend slightly more ($14.50) per spending would replace spending on month on cannabis-infused cookies, other products. Nearly half say they’ll just slightly more than they anticipate buy edibles as well as the products spending on brownies ($13.92) or they’re already buying—and a similar chocolate ($13.36). proportion aren’t sure. This suggests that Canada’s domestic cannabis market has room to grow.
Reasons for use of cannabis-infused edibles by current and likely users
Gummies Brownies Chocolate Cookies Current users $15.84 $10.34 $11.57 $13.40 Likely users $18.79 $13.92 $13.36 $14.50
Percentage of respondents who are current or likely users and willPercentage buy cannabis-infused of respondents edibleswho are current or likely users and will buy cannabis-infused beverages 0 44% 43% 41% 40% 40
30
20 17% 15%
10
0 uy this instead uy this in Not sure of products addition to products you used to buy you currently buy
Current users ikely users
15 Nurturing new growth | Canada gets ready for Cannabis 2.0 | Cannabis 2.0: Canadian survey insights
Use of cannabis-infused beverages by current and likely users Cannabis beverages: Tea’s hot, mixing your own is not Percentage of respondents currently using or are likely to use Canadian cannabis consumers really at least every 3 months Percentage of respondents currently using like their cannabis-infused tea—it’s the or are likely to use at least every 3 months most popular cannabis beverage choice 0 57% of both current (57%) and likely (53%) 53% consumers, especially among older 0 49% 46% 47% consumers. Among likely consumers, 43% 43% 39% hot and iced cannabis beverages 40 appeal equally to men and women. 33% 32% Likely consumers would prefer to buy 30 pre-made cannabis-infused beverages; 20 current consumers, on the other hand, appear quite comfortable using 10 drops, mixes, or elixirs to mix their own beverages. This isn’t surprising, 0 given likely consumers’ concerns over Drops, Water Carbonated Iced tea, Tea mixes, beverages lemonade, product safety and potency. and elixirs and fruit drinks
Current users ikely users
16 Nurturing new growth | Canada gets ready for Cannabis 2.0 | Canadian consumers: demographics and behavioursNurturing new growth | Canada gets ready for Cannabis 2.0 | Cannabis 2.0: Canadian survey insights
Reasons for use of cannabis-infused beverages by current and likely users Reasons for use of cannabis-infused edibles by current and likely users
35% To reduce stress or anxiety 45%
33% To help you relax or sleep 43%
30% To improve your mood 38%
29% To have fun with friends 40%
29% To alleviate/treat specific ainp or ailment 30%
25% To help your concentration or thinking 17%
24% Don t want to smoke vape cannabis 39%
24% s an alternative to alcohol 35%
0 10 20 30 40 0
Current users ikely users
Cannabis-infused beverages: Current and likely cannabis consumers In choosing cannabis beverages, likely At home with friends or family, prefer drinking cannabis beverages consumers prioritize product quality say likely consumers at home, but likely consumers tend to (52%), safety (50%) and potency (47%). One in three (35%) likely cannabis prefer to do so in a more social setting. A sizeable number of current (27%) consumers see cannabis-infused More than half of likely consumers and likely (22%) consumers say they beverages as an alternative to say they’d consume cannabis-infused also consider the organic nature of alcohol—perhaps seeing cannabis beverages at home with their partner the product in making their purchase beverages as a way to relax, sleep, or family members (59%) or friends decision. When it comes to making alleviate stress or anxiety, lift their (55%), compared to 41% and 34% of the purchase, most consumers mood and have fun with friends current consumers, respectively. again prefer to buy products from without the risk of a hangover the government retailers (54%), licensed next day. Slightly more likely users private retailers (53%) or licensed (39%) see beverages as a way to producers or manufacturers (46%). avoid smoking or vaping cannabis.
17 Nurturing new growth | Canada gets ready for Cannabis 2.0 | Cannabis 2.0: Canadian survey insights
Cannabis-infused beverages beverages, it appears, offer another unlikely to cut into sales of other route to incremental growth for the cannabis products Canadian cannabis market. Cannabis-infused Cannabis consumers’ spending on cannabis-infused beverages will Current consumers who are more beverages, it appears, probably complement, not replace, their comfortable mixing their own offer another route to spending on other cannabis products, cannabis beverages report spending according to our survey. Forty-four far more on drops and similar incremental growth for the percent of current cannabis consumers products than pre-made beverages. Canadian cannabis market. and 53% of likely consumers say they Likely consumers expect to spend will buy beverages in addition to other slightly more on cannabis-infused cannabis product. Cannabis-infused teas than on other beverages.
Reasons for use of cannabis-infused beverages by current and likely users
Average monthly spend on cannabis-infused beverages
Tea Water Drops Iced tea Current users $ 13.85 $24.21 $35.49 $19.83 Tea Water Carbonated Iced tea beverages Likely users $18.93 $18.90 $16.29 $14.57
Percentage of respondents who are current or likely users and willPercentage buy cannabis-infused of respondents beverageswho are current or likely users and will buy cannabis-infused beverages 0 53% 0 44% 40
31% 31% 30 25%
20 16%
10
0 uy this instead uy this in addition Not sure of products you to products you used to buy currently buy
Current users ikely users
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Increasingly popular cannabis to ensure a safe, efficient global When it comes to choosing cannabis- topicals poised to muscle in on cannabis chain that would extend infused topicals, consumers place prescription medication’s turf to the genetic composition of the significantly more importance on Cannabis topicals—including lotions, cannabis strain itself. This could be product safety and Canadian origin salves, gels, and creams—are popular cause for concern for the traditional than they do compared to edibles or among both current and likely cannabis pharmaceutical sector, as 45% of other products. Product quality and consumers. Thirty-four percent of likely current consumers and 48% of likely potency are also important criteria— cannabis consumers say they expect to consumers say they see cannabis as is whether or not a topical is organic. use cannabis lotions at least every two topicals as an alternative to prescription Brand and price don’t appear to play weeks, roughly the same percentage of medications, not a complement. much of a role in shaping consumers’ current consumers already do. The topical choices yet, though we would overwhelming majority (71% of current Current consumers say they spend expect to see that change in the future. consumers and 79% of likely an average of $21.22 on topicals each consumers) use or plan to use topicals month, while likely consumers expect to alleviate or treat specific pain. The to spend slightly more—$23.81— growing use of cannabis as a wellness on topicals once they’re legalized. product or to alleviate pain isn’t Not surprisingly, consumers’ main surprising: Canadian cannabis industry purchasing criteria are safety (70%) stakeholders have worked together to and quality (56%), and more than create an industry-wide, globally half choose to buy topicals from legal scalable traceability framework government or licensed channels.
Use of cannabis-infused topical products by current and likely users
Percentage of respondents currently using or are likelyPercentage to use of at respondents least every 3currently months using or are likely to use at least every 3 months 0 69%