Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- Impact of COVID-19 on cannabis
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- Figure 1: Short, medium and longer-term impact of COVID-19 on cannabis, February 2021
- Opportunities
- Edibles and drinkables are a vital tool to broaden the cannabis industry
- Cannabis use is often functional
- ‘The munchies’ means cannabis can positively impact other industries
- Consumers’ interest in appealing taste creates an opportunity for differentiation
- Alcohol is a substitute, complement and comparison point for cannabis
- Challenges
- Edibles and drinkables have quantifiable drawbacks compared to other formats
The Market – Key Takeaways
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- The legal cannabis market is finding its footing
- Health trends could benefit the edible/drinkable category
- Edibles and drinkables still face unique challenges
The Market – By the Numbers
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- Licensed cannabis consumer expenditure has surpassed unlicensed
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- Figure 2: Non-medical cannabis household consumption expenditure, Q3 2017-Q3 2020
- Pricing has made the legal market more competitive
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- Figure 3: Non-medical cannabis implicit price index, Q3 2017-Q3 2020
- It’s easier to buy legal cannabis
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- Figure 4: Number of federal cannabis licence holders, October 2018-September 2020
- Edible and drinkable cannabis sales continue to grow
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- Figure 5: Non-medical edible/drinkable cannabis sales (packaged units), December 2019-October 2020
Market Factors
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- The Cannabis Act limits marketing and production capabilities
- The Cannabis Act prohibits most promotion of cannabis
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- Figure 6: Have the Cannabis Talk with your kids. We can help, February 2021
- Edible and drinkable production must take place in a cannabis-only building
- Edibles/drinkables prices compared to other formats
- Cigarette smoking is in decline
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- Figure 7: Current or daily occasions smokers, 2015 vs 2019
- The science of edibles and drinkables
- Many Canadians experience mental health challenges
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- Figure 8: Mental health challenges experienced in the past 12 months, December 2020
- Impact of COVID-19 on cannabis food and drink
- Lockdown
- Re-emergence
- Recovery
Companies and Brands – Key Takeaways
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- Companies are quickly evolving the cannabis industry
Competitive Strategies
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- Social media is a vital tool for cannabis marketing in Canada
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- Figure 9: San Rafael ‘71 Facebook post, February 2021
- Figure 10: Up Cannabis Twitter post, December 2020
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- Figure 11: Houseplant Instagram post, March 2021
- Comparing low and high cost edibles and drinkables
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- Figure 12: Chowie Wowie Edibles Instagram post, September 2020
- Figure 13: The Edison Co Instagram post, December 2020
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- Figure 14: Truss Beverages Instagram post, December 2020
- Figure 15: Truss Beverages Instagram post, November 2020
- Alcohol brands are investing in drinkable cannabis
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- Figure 16: Hi-Fi Hops Instagram post, November 2020
- Cannabis companies are diversifying their brand portfolios
- Fast-acting technology is helping improve edibles/drinkables
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- Figure 17: Wana Brands Instagram post, November 2020
The Consumer – Key Takeaways
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- Cannabis usage
- Cannabis formats
- Edibles and drinkables purchase factors
- Food and drink consumed with cannabis
- Comparing edibles/drinkables to other formats
- A closer look at open non-users
Cannabis Usage
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- A snapshot of usage: a quarter of consumers use cannabis
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- Figure 18: Used/consumed in the past six months, December 2020
- Men drive demand in the cannabis industry
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- Figure 19: Used/consumed in the past six months, men vs women, December 2020
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- Figure 20: Used marijuana/cannabis in the past six months, men vs women by age, December 2020
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- Figure 21: Used marijuana/cannabis in the past six months, men vs women by presence of children, December 2020
- Cross usage shows that cannabis is closely connected with other controlled products
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- Figure 22: Used marijuana/cannabis in the past six months, by usage of other controlled products, December 2020
- A look back: cannabis usage is at the same level as 2019
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- Figure 23: Used/consumed marijuana/cannabis in the past six months, March 2019 vs December 2020
- Declines were biggest among young Canadians
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- Figure 24: Used/consumed marijuana/cannabis in the past six months, March 2019 vs December 2020
- Cannabis usage is usually functional
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- Figure 25: Reasons for using marijuana/cannabis, December 2020
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- Figure 26: Reasons for using marijuana/cannabis, by age, December 2020
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- Figure 27: Tweed Instagram post, July 2020
- Sleep as an opportunity to expand cannabis usage
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- Figure 28: Up Cannabis Instagram post, March 2019
Cannabis Formats
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- Edibles are the second most common format of cannabis
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- Figure 29: Marijuana/cannabis formats used in past six months, December 2020
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- Figure 30: Marijuana/cannabis formats used in past six months, cigarette smokers vs non-smokers, December 2020
- Edibles and drinkables resonate with women and higher income/education levels
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- Figure 31: Marijuana/cannabis formats used in past six months, men vs women by age, December 2020
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- Figure 32: Marijuana/cannabis formats used in past six months, by household income, December 2020
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- Figure 33: Marijuana/cannabis formats used in past six months, by education, December 2020
- Drinkables make it easy to use cannabis discreetly
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- Figure 34: Marijuana/cannabis formats used in past six months, parents vs non-parents, December 2020
- Edibles and drinkables will be central in attracting new users
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- Figure 35: Marijuana/cannabis formats that may be used in the next six months, December 2020
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- Figure 36: Marijuana/cannabis formats that may be used in the next six months, current users vs open non-users, December 2020
- Quebec is less interested in edibles, but presents an opportunity for drinkables
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- Figure 37: Marijuana/cannabis formats that may be used in the next six months, by region, December 2020
- Companies must focus on the edibles and drinkables consumers want
- Sweets are at the centre of edibles demand
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- Figure 38: Interest in edible type, December 2020
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- Figure 39: Foray Instagram post, October 2020
- Figure 40: Foray Instagram post, September 2020
- Cannabis-infused tea should be targeted at older consumers
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- Figure 41: Interest in types of drinkables, December 2020
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- Figure 42: Haven St Instagram post, December 2019
- Carbonated cannabis beverages have a clear overlap with alcohol drinkers
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- Figure 43: Tweed Instagram post, May 2020
- Figure 44: Interested in carbonated cannabis drinks, men vs women by age, December 2020
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- Figure 45: Interested in carbonated cannabis drinks, men vs women by presence of children at home, December 2020
Edibles and Drinkables Purchase Factors
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- Taste and price are the most important factors
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- Figure 46: Factors most important to edible/drinkable cannabis purchases, December 2020
- Consumers are looking for taste that is appealing, not just tolerable
- Older women are the most interested in appealing taste
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- Figure 47: Edibles/cannabis purchase factor: appealing taste, men vs women by age, December 2020
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- Figure 48: Edibles/cannabis purchase factor: tolerable taste, men vs women by age, December 2020
- The value equation for cannabis consumers
- Current users are focused on how much THC is included
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- Figure 49: Factors most important to edible/drinkable cannabis purchases, by cannabis usage, December 2020
- Branding remains a challenge in the cannabis industry
- Brand power is a particularly stark difference between cannabis and alcohol
Food and Drink Consumed with Cannabis
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- Most cannabis users experience ‘the munchies’
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- Figure 50: Food and drink consumed while using cannabis, December 2020
- Pantries and freezers are the targets of many cannabis users
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- Figure 51: Snacks consumed while using cannabis, by age, December 2020
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- Figure 52: Oh Henry! Instagram post, April 2018
- Figure 53: Ben & Jerry’s Twitter post, April 2019
- Hot food is another common munchie item
- Users often crave foodservice
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- Figure 54: Typically eat fast food while using marijuana/cannabis, by age, December 2020
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- Figure 55: Foodora Canada Instagram post, April 2018
- Figure 56: Jack in the Box Instagram post, December 2017
- Fried foods and pizza are menu items that will resonate
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- Figure 57: Hot foods typically eaten while using marijuana/cannabis, by age, December 2020
- CPGs can promote their hot foods too
- Alcohol is often complementary to cannabis
- Alcohol and cannabis pairing is more common during fun events
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- Figure 58: Alcoholic beverages consumed while using marijuana/cannabis, by age, December 2020
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- Figure 59: Alcoholic beverages consumed while using marijuana/cannabis, by reason for cannabis usage, December 2020
Comparing Edibles/Drinkables to Other Formats
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- Advantages of edibles and drinkables
- They are convenient and discreet
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- Figure 60: Attitudes towards edible/drinkable cannabis: convenience and discretion (% agree), December 2020
- They are considered healthier
- Disadvantages of edibles and drinkables
- They are expensive
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- Figure 61: Edibles/drinkables are expensive compared to other forms of cannabis (% agree), by current financial situation, December 2020
- They take too long to have an effect
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- Figure 62: Edible/drinkable cannabis takes too long to take effect (% agree), by age, December 2020
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- Figure 63: Stillwater Life Instagram post, January 2021
- Consumers believe drinkable cannabis is healthier than alcohol
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- Figure 64: Drinkable cannabis is healthier than alcohol (% agree), by age, December 2020
A Closer Look at Open Non-Users
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- A quarter of non-users are open to using cannabis
- Younger consumers, men and dads present the best opportunity
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- Figure 65: Open to using marijuana/cannabis in the next six months (% yes), men vs women by age, December 2020
- High income household consumers are interested in cannabis
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- Figure 66: Open to using marijuana/cannabis in the next six months (% yes), by household income, December 2020
- French Canadians will be a challenging target
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- Figure 67: Open to using marijuana/cannabis in the next six months (% yes), by language spoken at home, December 2020
- Cigarettes, e-cigarettes and CBD are uncommon among open non-users
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- Figure 68: Used/consumed in the past six months, cannabis users vs open non-users, December 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Mintel Trend Drivers
- Abbreviations and terms
- Abbreviations
- Terms
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