New research from Mintel suggests that cannabis edibles and drinkables are key to future growth for companies looking to tap into the Canadian market.
The study results arrive over a year since recreational use of cannabis was legalised in Canada.
In its study, Mintel found that 59% of Canadians are currently using and/or are interested in using cannabis with 27% of consumers reporting they used cannabis in the first six months of legislation. A third of non-cannabis users, meanwhile, said they are ‘open to trying it’.
Among these potential users, 48% think edibles are the most intriguing format and overall two-thirds of open non-users are interested in ingestible cannabis.
Scott Stewart, senior research analyst at Mintel, said: “The key to future growth for many consumer industries will be to convert more of the consumers who are open to but not current users of cannabis; their hesitance to try cannabis was a contributor to the relatively low sales in 2019, but the legalisation of edibles and drinkables in October 2019 will play a major role in 2020’s success.
“Edibles and drinkables can be a great introductory way for new users to familiarise themselves with cannabis and better understand the cannabis experience, potentially leading to using other forms of the product.”
According to Mintel’s report, 46% of cannabis consumers said they use it to have fun, yet a greater percentage use cannabis as a wellness product.
More than half (62%) of consumers reported that they use cannabis to relax and relieve stress/anxiety (54%). Additionally, 42% use it to improve sleep and 39% use it to improve their mood.
Similar health and wellness reasons were given for the consideration of use by people open to try cannabis.
According to Mintel, willing non-users of cannabis feel that they are lacking information. 41% claim that they are knowledgeable on how to consumer cannabis.
“Our research shows that many Canadians view cannabis as a very complex and intimidating product and the lack of understanding leads many to avoid it entirely,” said Stewart.
“Brands can navigate this by using online platforms and in-store employees to help educate consumers about cannabis. Strict laws around marketing cannabis mean that brands have to be very careful about their approach but using factual statements to help educate and familiarise potential consumers with cannabis is a good way of establishing a trusted position in the market.”
© FoodBev Media Ltd 2020