Marijuana Businesses Better Stock Up On This Product in 2017

There are some big changes happening in cannabis consumer preferences that marijuana businesses should pay close attention to in 2017!

marijuana businesses should stock up on cannabis oil for vape pens

Earlier this year the California-based marijuana delivery service called Eaze (known as “The Uber for weed”), released its second annual “State of Cannabis” report.

The report draws on data from 250,000 California users and a survey with 5,000 respondents to provide a very comprehensive picture of your customers if you’re in the marijuana industry.

If you’re not selling cannabis oil cartridges as part of your marijuana business and making a concerted effort to advertise this product category to your clientele, you’re missing out on a big opportunity in a rapidly growing cannabis product segment.

According to Eaze’s first report at the beginning of 2016, marijuana oil cartridges for vaping were a mere 6% sliver of overall sales for the past year. This year sales of marijuana oil cartridges are up over 400% making up a full 24% of the delivery service’s sales.

As more cannabis consumers take to vaporizing their weed, fewer and fewer are purchasing the raw plant itself. Over the last year sales of the marijuana plant’s raw flowers fell from 75% to 54%.

Customers are less interested than ever in lighting up and smoking, when they can use a cleaner, less harsh vaporizer, or purchase any number of edible cannabis products ready-made, that they don’t have to prepare themselves.

Finally, consumer purchases of flowers, edibles, and concentrates that are primarily CBD-based has increased 38% over the last year.

CBD or cannabidiol, is a cannabinoid that is remarkable for providing consumers with many of the palliative and medical benefits of marijuana, without producing the characteristic psycho-active “high” that is caused by THC.

Marijuana businesses that are paying attention will cater to the increasing consumer demand for these product categories.

Investing in The Marijuana Industry Promises Huge Returns

Investing in the marijuana industry has never looked more lucrative.

investing in the marijuana industry yields big returns

Earlier this year, Forbes astounded its audience by noting that 2016 marijuana sales in the US states where it’s legal outmatched the Dot-Com boom of the early 2000s.

They based this on a report by Arcview Market Research, which is the market leader in data research for legal marijuana market in the United States. According to Arcview, legal marijuana sales in North America grew to $6.7 billion in 2016.

As Forbes Magazine observed, by comparison the entire US GDP during the Dot-Com era grew at 22% versus the 30% growth we’ve seen in the marijuana market to achieve those kind of number sin 2016. And remember that at the time, the dot-com expansion was considered unparalleled in its scope and magnitude.

Arcview’s editor, Tom Adams wrote:

“The only consumer industry categories I’ve seen reach $5 billion in annual spending and then post anything like 25% compound annual growth in the next five years are cable television (19%) in the 1990’s and the broadband internet (29%) in the 2000’s.”

At the rate the marijuana industry is growing, we can reasonably project legal cannabis sales north of $20 billion by the year 2021 just five years from now.

Consumers clearly value marijuana for its psychoactive effects, the characteristic “high” caused by the THC in its leaves, rewarding consumers with relaxation, greater enjoyment of their company and surroundings, increased insight, and greater creativity.

Many consumers use marijuana the way American workers have used alcoholic beverages since this country was founded, as a way to unwind after a hard day’s work. The demand for legal marijuana is undoubtedly robust and hardly flinching at federal prohibition of cannabis and cannabis products.

Investing directly in marijuana dispensaries themselves or cannabis farms is just one way of investing in the marijuana industry. Another is to invest in the various auxiliary businesses the provide support and business infrastructure to this multi-billion dollar boom industry.