Sweet Treats Take Over: Gummie Consumption Outpaces Flower In Latest Consumer Data, Here's Why

Gummies have overtaken the flower market based on consumer data from the latest BDSA cannabis market report.

To learn more, Benzinga spoke with Brendan Mitchel-Chesebro, a cannabis market analyst, about how branding opportunities and targeted marketing strategies employed by edible companies cater to specific needs and effects desired by consumers.

"More people are now consuming gummies rather than flowers, likely due to the increasing number of non-smoking new and returning consumers who prefer a non-inhalable option," Mitchel-Chesebro says. "Gummies offer familiarity and accessibility, and the edible category allows for better branding and building customer loyalty compared to whole flowers."

Among past six-month consumers, 49% consumed gummies while 47% consumed flower. This is attributed to availability, innovation, and preferences of non-regular smokers, Mitchel-Chesebro explains. After all, there's a learning curve for consumers when it comes to flower consumption. It requires knowledge of different strains and a certain level of cannabis culture.

However, for new consumers, gummies or other edible products provide a more familiar and accessible form of consumption.

"This familiarity with a specific form factor is a key driver in the preference for edibles," Mitchel-Chesebro said.

Factors And Targeted Marketing

The popularity of edibles in the cannabis market can be attributed to the expansion of legal access in new markets, such as Missouri, where cannabis culture may not be as deeply established.

Consumer preferences have also shifted, with more users citing benefits like better sleep and improved quality of life for cannabis consumption, leading brands to offer products tailored to specific needs, such as sleep aid, pain relief, and stress reduction.

Thus, the cannabis industry is witnessing a move towards mood and activity-based targeting in the edibles segment when it comes to branding and product differentiation.

Mood-Based Branding

“Strong edibles were very popular in California before adult use. 1000 milligrams brownies, and 1500 milligrams syrups were common at retail. Now we've seen a shift to brands having products that are more general, with different minor cannabinoids and adaptogens, specifically targeted for better sleep, pain and stress relief, and relaxation,” Mitchel-Chesebro said. "Targeting by a mood or targeting by activity. That's something that we're seeing."

BDSA reported that in the first quarter (Q1) of 2023, mood or effect-branded gummy edibles accounted for 15% of dollar sales in California, Colorado, Nevada, and Oregon. That's a significant increase from previous years, underscoring the increasing significance of mood-based branding in boosting sales.

From High Energy to Relaxation

BDSA is also seeing brands that are marketing cannabis edibles for high energy, almost like athletic products.

"We're seeing brands marketing edibles for high energy and activity needs, sometimes marketed like athletic products. They sell cannabis beverages with THCv, which some people feel can provide an energy boost, resembling a cannabis-infused sports drink.

Similarly, there are products aimed at relaxation, not strictly medical, but designed to help unwind and de-stress. These products cater to various consumer needs, encompassing health and medical benefits, improving quality of life, and recreational purposes."

BDSA reports that 34% of users cite taste and flavor options as their reason for choosing gummies.

Popular flavors include blackberry, watermelon, and lemonade, with BDSA data suggesting that best-selling brands with high availability, such as Wyld, Wana Edibles, and Camino (the top three best-selling brands in Q1 of 2023 across BDSA-tracked markets) are drivers of flavor trends.

Brands also offer edibles that provide specific effects, as around one-third of consumers are willing to pay more for such products.

“In terms of dosage preferences in adult-use markets, approximately 20% of consumers prefer a dosage between 5 and 10 milligrams, followed by 17% preferring between 2.5 and 5 milligrams. Preferences gradually decrease for higher dosages, with 16% favoring 10 to 20 milligrams and smaller percentages for dosages ranging from 20 to over 200 milligrams,” Mitchel-Chesebro added.

Would you like to learn more about this thriving industry? Join us at the Benzinga Cannabis Capital Conference in Chicago on September 27 and 28, where cannabis industry enthusiasts and investors will converge with market research experts to capitalize on invaluable insights, paving the way for smart and informed investments. Don't miss this chance to explore consumption trends, dissect fine-grained retail data, and seize opportunities in the ever-thriving cannabis market.

The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.

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Photo: Sergey Nivens and Victor Moussa on Shutterstock.