Key Market Trends: Cannabis Is Impacting Alcohol Consumption And Driving Food Demand

Alcohol is losing ground to Cannabis and affecting demand in the food and beverage sectors, new research shows as Numerator unveils consumer trends in cannabis. This comprehensive survey of almost 6,000 individuals who have used THC and CBD products demonstrates shifts in alcohol consumption, an uptick in spending on cannabis, and an increased focus on snacks, beverages and utilization of food delivery services.

Main Trends 

• Alcohol and cannabis behavior: The reduction in alcohol consumption among cannabis users stands out, with 36% of respondents indicating a decrease in alcohol use since they began using cannabis. Nevertheless, alcohol and cannabis are, to some extent, still functioning like complementary markets, since users are buying slightly more alcohol than non-users. (73% vs. 65%). 

• Average spending by customer: In terms of spending, the survey has shown that 31% of users are spending upwards of $100 monthly on THC products, due to higher frequency of consumption and pricing of selected products. 

Diving deeper into the specifics of consumer spending, the survey illustrates that THC users significantly outspend non-users in several grocery categories. Notably, there’s a 1.7 times higher expenditure on sports & energy drinks and a 1.3 times higher expenditure on beer among THC users. This group also spends more on frozen sandwiches, spirits, frozen pizza, and frozen appetizers, showcasing a distinct preference for certain food and beverage products.

• Higher fast food demand: the study highlights the impact of cannabis use on preferences for fast food and delivery services. THC users are much more likely to order from food delivery apps like Doordash and Uber Eats, with a 61% higher likelihood for Doordash and a 35% higher likelihood for Uber Eats compared to non-users. This trend extends to specific fast food chains, where THC users demonstrate a higher propensity to buy from establishments like Little Caesars, Jersey Mike's Subs, and Taco Bell, among others.

• Younger and lower-income customers: The survey identifies this group as using cannabis more regularly, mainly Gen Z and Millennials with incomes below $60K. They form a significant market segment with specific consumption habits and preferences. Of these, 38% are daily users with higher spending on cannabis products.

• Consumer reengagement: An aspect of the study is the openness among past cannabis users to reconsider its use, with 74% indicating a willingness to use cannabis again in the future. The primary reasons for previous discontinuation include lifestyle changes (29%), a decline in enjoyment (23%) and shifting priorities (17%). This insight into consumer re-engagement potential highlights a significant opportunity for market re-entry strategies, particularly for businesses aiming to recapture or introduce products to former users.

The study provides insight into consumer profiles and demand trends. Understanding these trends is crucial for stakeholders aiming to adapt and thrive in an evolving market environment characterized by changing preferences and consumption habits.