Scooby Snacks And Cannabis Facts: Analyst Unveils Halloween Sales, Pricing And Trend Insights

In an exclusive interview with Benzinga, Brendan Chesebro-Mitchel, an analyst from the business intelligence firm BDSA, delved into this year's Halloween cannabis sales.

What unique trends in Halloween cannabis sales could set this holiday apart from others? And how do different states like Florida, Missouri and Michigan experience these trends?

Chesebro-Mitchel highlighted the significant boost in edible sales during Halloween, with an increase in total edible sales, sparking particular interest in culinary products like infused baking goods.

He also explored pricing and pricing margins, the rise of gummies with specific attributes, and the dominance of gummies in the edible category, accounting for about 70% of dollar sales.

Highlights: Halloween Edible Cannabis Sales

Halloween is one of the standout cannabis holidays, along with Thanksgiving and 4/20. Edibles are a significant focus on Halloween, boosting sales.

In 2022, total edible sales increased by 6% on Halloween compared to other Mondays in October. According to Chesebro-Mitchel the subcategory that saw the most significant boost was “culinary products,” with a 24% increase, which includes infused baking products like infused sugar.

Infused foods, including baked goods, saw a 16% increase, and chocolates had a 12% boost on Halloween.

Meanwhile, cannabutter is the top-selling culinary product, accounting for a majority of sales in this category, with $315,000 in year-to-date sales.

The data also revealed that the hot sauce category had a product break into the top ten.

"When analyzing the edible category, it's crucial to consider some seasonality trends. Subcategories like culinary products stand out as the top performers, experiencing a significant 24% boost. This subcategory includes infused baking products, such as infused sugar, which has gained popularity in certain markets," Chesebro-Mitchel said.

Halloween Cannabis Pricing

Halloween typically sees a low single-digit price drop across all categories compared to holidays like Black Friday or Green Wednesday.

However, edibles experience a more significant price decrease, with gummies, for instance, being priced 6% lower on Halloween than the October 2022 average.

This lower price decrease is favorable for retailers, especially for gummies, which are already in a competitive market.

“Halloween pricing differs from holidays like Black Friday and Green Wednesday, with just a low single-digit price decrease across categories. Notably, in the edibles segment, Halloween records a 6% price drop compared to October averages. This 6% price reduction translates to a 6% boost in Halloween's gummy sales, despite gummies already facing fierce competition and thin profit margins,” Chesebro-Mitchel added.

He highlighted the trend of gummies with specific attributes, such as cannabinoids like CBN or additives like melatonin, aimed at meeting consumers' specific needs.

“There's a growing trend in the cannabis industry towards crafting gummies tailored to specific consumer needs. Brands are incorporating lesser-known cannabinoids like CBN and CBG, as well as additives such as melatonin and herbal ingredients like chamomile," Chesebro-Mitchel said, adding that they constitute around 70% of edible sales and that candies make up 75%. 

Infused Drinks, Discounts, Upselling: Strategies For Halloween Cannabis Sales

Chesebro-Mitchel explained that beverages did not see significant discounting for Halloween, with only a 2% increase in sales on Halloween compared to other Mondays in October 2022.

Regarding discounts, he mentioned that the potential varies from market to market, depending on factors like retail prices, demand, and competition. He advises retailers to consider cross-category discounts to boost sales in less popular categories.

In terms of upselling, products with CBD or other minor cannabinoids tend to sell more than those without. For instance, infused pre-rolls are priced higher, primarily because they include extracts.

Halloween Cannabis Trends Across States: A Closer Look

The analysis of Halloween cannabis trends across states revealed intriguing insights. In Florida, daily dollar sales enjoyed a remarkable 16% surge during the Halloween week, with flowers, edibles and pre-rolls leading the way.

Missouri followed suit with a 6% boost in Halloween week sales compared to regular October weeks.

Michigan, known for its strong market performance, showed unique features, notably increased shake and trim sales, although overall dollar sales dipped by 2% during Halloween week.

Photo by Colton Sturgeon on Unsplash.