Who Wants Edibles? 🍫
Breaking down the consumer demand for cannabis edibles in North America...
In Today’s Issue:
→ Demand For Edibles. 🍫
→ Progress In New York. ✅
→ Cannabis In Costa Rica. 🌴
Cannabis Edibles In North America
Breaking down the demand for cannabis edibles...
The cannabis industry is ever-evolving, and with this it’s essential to understand how consumers’ preferences are also changing.
With an ever-increasing number of cannabis products being brought to market, consumers have no shortage of products to choose from.
In today’s edition of Four PM, we will be examining the demand for edibles.
Canada vs America
The demand for edibles looks very different across North America.
Per Headset, in Canada, edibles held a 5% market share over the previous 90 days, however, in the U.S, edibles captured a 10.2% market share.
Across North America, the majority of all cannabis edible sales are products that have the highest amount of THC permitted.
→ In Canada, 92.9% of sales go to the 10 mg THC package size.
→ In the U.S, 70.8% of sales go to the 100 mg THC package size.
In the case of Canada, one of the most common critiques of the current regulations is a 10mg cap on edibles which results in consumers purchasing products from the illicit market.
What cannabis consumers want?
There might be significant differences in the demand for cannabis edibles between Canada and the U.S, however, there are striking similarities in the types of products consumers are purchasing.
Currently, gummies are by far the most popular type of edible, with over 71% market share in the U.S & over 65% market share in Canada.
To date, the cannabis brands who have focused on producing the best gummies have been duly rewarded as the top 5 edibles brands by sales over the last 90 days in the U.S all focus on gummies.
With this strong demand for edibles, sales are expected to exceed $2 billion USD in the U.S in 2021 & in Canada total edible sales are expected to exceed over $145 million USD this year.
Despite the unpopularity of the current regulations for cannabis edibles in Canada — sales are on track to increase by close to 100% from 2020 to 2021.
In the U.S, where edibles have proven to be more popular, total sales are forecasted to increase by $500 million USD to $2.33 billion USD in 2021.
A 28% increase in annual sales.
Additionally, cannabis edible sales are forecasted to reach a staggering $2.98 billion USD by 2023 as more states continue to legalize cannabis.
The consumer demand for higher potency edibles suggests Canada has significant room for improvement with respect to its current regulations.
With over 70% of all edibles purchased in the U.S containing more than 100mg THC, it’s likely these consumers in Canada are currently purchasing the same higher potency products from the illicit market.
New York Continues To Embrace Cannabis
The state is once again leading the way when it comes to cannabis…
Adults living in New York may not be able to purchase legal cannabis products as of yet, however, the state continues to embrace cannabis.
In the past month, New York has made 3 very significant announcements.
Ending cannabis tests at work.
Allowing patients to cultivate cannabis.
Expunging criminal records for cannabis.
The very first…
New York has announced that state employers will no longer be allowed to test employees for cannabis.
This move makes New York the very first state in the country to explicitly prohibit employers from testing both current & prospective employees.
There are limited exceptions to these rules such as someone being visibly impaired or someone bringing cannabis products to work — both of which can result in someone being asked to take a test.
“Only symptoms that provide objectively observable indications that the employee’s performance of the essential duties or tasks of their position are decreased or lessened may be cited.” the new regulations state.
Despite the fact that medical cannabis was made legal in New York in 2014, medical patients in the region are unable to cultivate their own cannabis.
Last Thursday, however, the recently established New York state Cannabis Control Board met for the second time where they issued new draft regulations where patients can grow their own cannabis.
Per the proposal which is now subject to a 60 day public comment period, each patient can grow up to 6 plants — limited to 12 plants per household.
Expunging criminal records…
Last, but certainly not least on this list of recent announcements is the expungement of criminal records for cannabis.
The Cannabis Control Board confirmed 203,000 cannabis-related charges are currently being suppressed from criminal background searches.
Additionally, these records are in the process of being sealed or expunged, as part of legalization.
This comes at the same time when cannabis related arrests continue to significantly decline in New York.
While 163 people were arrested for cannabis in the first quarter of 2021, just 8 people were arrested in the latest quarter of 2021.
New York seems to be taking all of the right steps to ensure they create a successful cannabis industry.
I am personally keeping a very close eye on this market, as they continue to impress me with each of the moves they make.
Medical Cannabis In Costa Rica
The central American nation is on track to legalize medical cannabis…
Located in Central America, Costa Rica is home to over 5 million people.
For the 5 million people living in Costa Rica, the laws are very vague when it comes to cannabis, however, a great deal of progress is being made.
Under the current laws, it’s illegal to produce or carry “large quantities” of cannabis with the intent to sell this product.
The problem is that the laws in place have not clearly defined what exactly a large quantity of cannabis is.
This lack of clarity has resulted in the law enforcement in the region being given discretion to make this determination on their own, however, in December 2016 this was put to the test.
170 cannabis plants…
A single cannabis plant, grown under the right conditions can produce close to 500 grams.
Consequently, when Mario Alberto Cerdas Salazar — a Costa Rican lawyer was found in possession of 170 cannabis plants the police arrested him.
Few could have predicted the events that followed when Mario Alberto Cerdas Salazar was acquitted of all charges — thereby unofficially decriminalizing cannabis in Costa Rica.
In March 2019, it was proposed to legalize medical cannabis in Costa Rica.
Last week, the proposal that would legalize cannabis for medicinal use, in addition to legalizing hemp for food and industrial use was approved in a first debate by the Legislative Assembly with 33 votes in favor and 13 against.
The next steps…
This proposal has ways to go before becoming law, including a second debate by the same legislative body and a signature from the President.
The current bill faces opposition from the Costa Rica minister of health — a key stakeholder in this discussion.
As of today, ROCO Plants SA is the only cannabis company that has been granted permission to study cannabis in Costa Rica.
Led by researcher Daniel O'Bryan, the company's focus is testing which cannabis genetics are best suited to the climate of Costa Rica.
In November of this year, the teams’ work will be showcased to the Costa Rican Congress to help them better understand the cultivation of cannabis.
Without the support of the Minister for Health, this bill will face opposition, however, given the strong support they currently have — it looks very likely that Costa Rica will soon legalize medical cannabis.
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Today's Cannabis Jobs
→ Buddi is hiring a Director of Engineering.
→ Greenline is hiring a Customer Success Representative.
→ LeafLink is hiring a Director of Retail Business Development.
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