Cannabis Sales Seen As Resistant To Inflation PressureDecember 16, 2022
Cannabis, like alcohol, is proving to be somewhat insulated from broad economic swings, with many consumers reporting maintaining their expenditures despite inflation and rising prices in the general economy, polling done on behalf of Jushi Holdings found. The second installment of its annual Cannabis Consumer Insights Holiday Poll surveyed one thousand cannabis consumers across the U.S. in legal markets. While Jushi is a cannabis multi-state operator, the polling was conducted independently by Pollfish.
According to the polling, 63% of respondents found recent inflation to be painful or very painful. Nonetheless, 52% of them said they are consuming about the same amount of cannabis and 24% are consuming more. “Our independently conducted poll shows that even with mounting inflationary pressures and cost-saving behaviors on the rise, demand for cannabis remains very resilient,” said Jim Cacioppo, Jushi CEO. “In fact, we found customers are actually consuming the same or more than they were a year ago—they’re just purchasing less expensive alternatives to compensate for the rising cost of living.”
Consumers say they’re adapting their buying habits to suit the moment. A year ago branding and strain type were significantly more important. Now buyers are less concerned with getting precisely the strain they were previously loyal to and are shopping around for better deals. 39% of those polled said they were purchasing less expensive products, but 73% said they are actually spending more or the same in dollar terms. 35% said they spend between $50 and $100 a month on cannabis, 23% spend $100-$150, 14% said $150-$200, and 12% report spending more than $200 a month on cannabis.
As part of the trend toward cost-effective options, cannabis flower has gained favor over competitors like pre-rolls, edibles, and drinks. 58% of respondents chose flower as one of their favorite product types, up 6% from last year, while edibles lost 5%. Vapes were chosen as a favorite by 46% of poll respondents, and drinks received a nod from 11%, far above their current market share.—Danny SullivanSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.
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