Marijuana Business Magazine May-June 2019

Marijuana Business Magazine | May-June 2019 8 Challenges and Opportunities in Edibles T he cannabis consumer marketplace is rapidly evolving, driven in part by changing regulations and ever- fickle patient and consumer demand. While flower dominated sales initially and maintains strong popularity in states where it’s allowed, infused edibles purchases are on the rise. In California, Colorado, Nevada and Washington state, all categories of infused edibles products saw growth between 11% and 140% from February 2018 to February 2019, according to Seattle-based data firm Headset. Edibles as a segment face challenges: They are banned in several medical states, and, where allowed, edibles are subject to strict regulations governing form, shape, color and flavor to limit their appeal to children. Despite these regulations, the edibles segment offers the most choice to consumers and patients in terms of products and brands. Infused product manufacturers are clearly on board: Headset reports 372 brands of recreational edibles in just four states. Trends in edibles in 2019 include microdosing—often described as less than 10 milligrams of THC per serving or in the range of 5 milligrams of THC—and infused gummies. Cannabis bythe Numbers | Maggie Cowee 49% Share of cannabis-infused edibles sales in California, Colorado and Nevada that goes to gummies. Watermelon is the most popular flavor of gummy in California. 14.3 Average number of months of operation before an infused product manufacturer breaks even or achieves profitability. Proportion of cannabis- infused edibles sales spent on microdose products, or items with 5 milligrams or less per serving, in early 2019 in California, Colorado, Nevada and Washington state. That’s up from 20% in early 2018. 14% Share of recreational cannabis spending devoted to edibles by women in California, Colorado, Nevada and Washington state. Men, in contrast, spend 10% of their cannabis budget on edibles. Average retail price in cents per milligram of THC in edibles in California, Colorado, Nevada and Washington state. The price per milligram of THC in tinctures and sublingual products in these four markets averages 32 cents, while beverages come in at 26 cents. 20 30% Sources: Marijuana Business Factbook, Headset, BDS Analytics