While the cannabis industry always moves fast, recently some have been noticing a little bit of a market slowdown.
Growth through 2020 in all markets was substantial as the pandemic triggered lockdowns and stimulus checks that created both increased demand and increased disposable income. Sales growth of adult-use cannabis soared in 2020 with many markets achieving 30%+ year over year growth.
Headset’s hypothesizes the pandemic led to increased consumption in the cannabis enthusiast segment, which has decreased as society has returned to more in-person activities.
This sales growth has waned throughout the summer and fall of 2021, as consumers return to the workplace and re-engage in in-person activities like dining, travel, and entertainment. With cannabis consumption prohibited in most of the venues that house these activities (hotels, bars, concert halls, air travel, etc.), this may have contributed to decreased cannabis consumption.
Sales in 2020 should be treated as an anomaly and properly adjusted when used both for forecasting the future and measuring present growth to avoid the base problem.
Sales are slowing in mature markets, but argue that sales are simply returning to pre-pandemic levels. The remarkable growth that was seen in 2020 was unlikely to be sustained because it was achieved under the unusual circumstances of a global pandemic.
Show Notes:
Cannabis market fluctuations: Examining industry slowdowns
https://www.headset.io/industry-reports/cannabis-market-fluctuations-examining-industry-slowdowns#form
Host:
Josh Kincaid, Capital Markets Analyst & host of your cannabis business podcast.
https://www.linkedin.com/in/joshkincaid/
Episode 857 The Talking Hedge:
Your Cannabis Business Podcast.
Covering cannabis products, reviews, business news, interviews, investments, events, and more.
https://www.theTalkingHedgepodcast.com
Music Info:
Song: Dark Trap Beats Hard Rap Instrumental | Gang | 2018Artist: LuxrayBeats
Keywords:
Hemp News, Weed News, Cannabis News, Marijuana News, Cannabis Business, Marijuana Business, Cannabis Industry News, Marijuana Industry News, Weed News 420, Talking Hedge Podcast, Cannabis Podcast, Marijuana Podcast, Business Podcast, CBD podcast, THC podcast, Cannabis Pitch Deck, Marijuana Pitch Deck, Marijuana Investment Deck, Cannabis Investment Deck, Cannabis Compliance, Cannabis Data, Cannabis Banking, Cannabis Investment, Pot Stocks, Cannabis Stocks, Weed Stocks, Marijuana Stocks, Cannabis Data, Marijuana Data, Cannabis Analytics, Marijuana Analytics, Cannabis Sales Data, Marijuana Sales Data
Josh is not an investment adviser. The Talking Hedge is long gold and silver. Listeners should always speak to their personal financial advisers. This is only entertainment.
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