The Flourishing Edibles Market: A Golden Opportunity for Wellness-Minded Store Owners
The rise of edibles in the cannabis industry is no less than a sensation. From an inconspicuous start, edibles have grown into a formidable category, capturing the attention of both consumers and entrepreneurs alike. Wellness-minded store owners, here’s why you should be sitting up and taking note.
The Edibles Surge
As per The Edibles Issue published by Marijuana Magazine, edibles are nothing short of the sleeping giants of the cannabis sector. Their versatile appeal, ranging from easy, discreet options for novice users to a top-shelf experience for connoisseurs, has propelled their meteoric rise.
The numbers are testimony to this claim. National edibles sales saw a robust rise of 31% in 2021 from the previous year, clocking in at a whopping $2.9 billion. And they did not stop there. By 2022, sales again soared by 18%, hitting $3.4 billion, as stated by New Frontier Data.
Market Dynamics
The sheer growth is not the only captivating story; the underlying market dynamics make the tale even more compelling. By September 2022, edibles had gobbled up 12.1% of all U.S. cannabis sales. This spike triggered a 4.7% increment in the brands vying for a slice of the edibles pie.
Moreover, the product diversification within the edibles category is noteworthy. While gummies have been the frontrunners, edibles have metamorphosed into a plethora of forms, spanning various segments. Beverages and chocolates have also shown growth in popularity.
Breaking Down the Edibles Pie
A glance at the edibles market breakdown reveals intriguing trends. While the segment’s growth is evident, the underlying categories driving this growth present a broader picture.
• Candies/Gummies: The heavyweight in the edibles category. In 2022, candies alone accounted for a significant 73% of sales, marking a solid 11.5% jump from the previous year.
• Chocolates: Holding the second spot, chocolates constituted 9% of edibles sales.
• Beverages and Pills: Both these categories clinched the third spot with each accounting for 7% of sales. Notably, beverage sales grew by 3% from 2021 to 2022.
• Infused Foods and Other Edibles: These categories secured 4% and less than 1% respectively. But the story of “other edibles” is special. Even though it made up less than 1% of sales, its year-on-year growth was a staggering 414%, as per BDSA’s insights.
Demographics: A Closer Look
Unearthing the demographics uncovers the potential of this sector. Women seem to have a stronger affinity toward edibles, making up 57.63% of consumers. Men follow at 42.37%. Age-wise, the 35-54 bracket emerges as the leading consumer segment, trailed by the 18-34 and 55 and above categories.
State-wise Performance
Geographically, the surge in the edibles sector has been broad-based. Nine states reported growth in the segment from 2021 to 2022. Florida, Michigan, and Pennsylvania were standout performers, showing 30%, 27%, and 24% growth respectively.
The Road Ahead for Wellness Store Owners
Wellness-minded store operators have a promising business opportunity at their fingertips. The edibles market, with its vast potential and varied offerings, presents a lucrative venture. By staying informed, aligning with consumer preferences, and constantly innovating, store owners can successfully ride the edibles wave, ensuring profitability and sustained growth in this burgeoning sector.
