As legalization marches across the U.S., cannabis and holidays go hand-in-hand.
Thanksgiving has already become one of the best-selling periods for cannabis businesses, with the day before Thanksgiving becoming known as Green Wednesday.
Traditionally, April 20 remains the biggest and most exciting holiday for cannabis consumers and is known as 4/20. This year, there's even more excitement, as the date falls on a Saturday.
Ahead of the event, LeafLink, Flowhub and Headset provided some data regarding what businesses should expect this year based on last year’s results and recent consumer trends.
Headset: Bet On 4/20 Eve
Business analytics software provider Headset took into account data from states where cannabis has had the longest presence — Washington, California, Nevada and Colorado — and compared trends over the last four years.
What Headset found is that 4/20 has always been the biggest day in cannabis.
Fridays also consistently rank as the day of the week with the most sales. Given that this year 4/20 comes on Saturday, Headset expects that April 19 will register strong sales as people stock up before the holiday.
In addition, Headset believes that this year’s 4/20 will be highlighted by edibles and beverages, with many customers looking to try something new most likely picking an infused product.
Flowhub: Higher Sales For Dispensaries, More Competition For Brands
Point-of-sale software provider Flowhub highlighted that in 2018, 4/20 saw a 30-percent year-over-year sales increase.
At the same time, sales increased by 51 percent compared to an average Friday.
This year, Flowhub estimates that sales will follow a similar growth trajectory to last year’s holiday, with merchants experiencing at least double the sales of an average Saturday.
The company also warns that sale amounts might be smaller-than-average because of increased competition, trending lower price points in Colorado and Oregon and new or occasional consumers looking for cheaper products or lower quantities.
Flowhub said that top product categories will be products that are easily shared and are more appealing to new consumers, such as flower, pre-rolls and edibles, but there will also be more sales of accessories and lower-priced products.
A Lot of Hype
While the holiday itself is a major event for cannabis merchants and product manufacturers, the month leading up to it also generates more sales. For one, Flowhub believes that medical and regular consumers want to avoid queuing during the holiday itself, so they’ll likely have stocked up and taken advantage of deals in the preceding weeks.
LeafLink estimated that in the month leading up to 4/20, wholesale orders on its platform will land 180-percent higher compared to the same period of 2018, which results in estimated retail sales of $1.46 billion, or a 25-percent year-over-year increase.
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