Businesses looking to cash in on Canada’s legal market in 2020 should direct their attention to ingestible cannabis, according to research from market research firm Mintel.
According to data released Tuesday, a third of non-cannabis users say they are open to trying cannabis.
And among these potential users, edibles are the most intriguing format. Overall, two-thirds of those non-users are interested in edible and drinkable cannabis.
Senior research analyst Scott Stewart says the greatest opportunities lie in the untapped consumer base.
“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 legalization of edibles and drinkables in October 2019 will play a major role in 2020’s success,” he said. “Edibles and drinkables can be a great introductory way for new users to familiarize themselves with cannabis and better understand the cannabis experience, potentially leading to using other forms of the product.”
While nearly half (46 per cent) of cannabis consumers use it to have fun, according to Mintel, more people use cannabis as a wellness product. More than half of cannabis consumers use it to relax (62 per cent), and relieve stress and anxiety (54 per cent). Additionally, two in five use it to improve sleep (42 per cent) and their mood (39 per cent).
The research firm says users aren’t the only ones looking to cannabis to fulfill health and wellness needs: Two-fifths of open non-cannabis users would consider using cannabis to relieve pain, and a quarter would consider using cannabis to improve sleep.
Mintel believes many of the consumer barriers to cannabis use can be overcome with time, education, and the support of brands. For instance, the company said three of the top four barriers to usage for cannabis non-users are the smell (37 per cent), smoke (36 per cent), and health concerns (28 per cent).
According to the research people who don’t use cannabis, but are willing to try it, are lacking information. Only around 40 per cent of them said they are knowledgeable on how to consume cannabis.