MJBizMag November-December 2021 - 62

What Consumers Want
Infused Beverage Growth
Infused beverages don't command the market share of other
categories but are continuing to grow. Here's how the category
has faired over the past five years in CA, CO, NV, OR and WA.
Monthly sales
In millions
$3M
$6M
$9M
$12M
$15M
$0
Sept.
$12.2M
Sept.
2020
$9M
Market share
Percentage of total
.03%
.06%
.09%
1.2%
1.5%
17 18 19 20 21
0%
Sept.
1.4%
Sept.
2020
1.0%
Average price
Unit price per gram
$0.05
$0.10
$0.15
$0.20
$0.25
17 18 19 20 21
$0
Sept.
2020
$.19
Sept.
$.13
17 18 19 20 21
Source: Headset
Sip Elixirs own 58% of the infused beverage
market share in Nevada. Courtesy Photo
Cundari said. He explained that as the
Michigan market has stabilized and
grown since recreational marijuana
sales began in 2018, there is much more
cannabis advertising.
" Now that we're in a legal and licensed
market, we've got multistate-operating
businesses across the board in Michigan.
People are used to seeing advertisements
and branding for a lot of these companies, "
he said.
PREDICTABLE EFFECTS
Jeff Finnerty, head of marketing at New
York-based multistate operator Ayr
Wellness, agreed more consumers are
taking an interest in edibles and infused
beverages. He attributes the uptick in
sales partly to familiarity and partly to
innovations such as nanotechnology,
which creates a faster and morepredictable
onset of effects.
Edibles and infused beverages can
be especially popular among newer
cannabis consumers, Finnerty said. For
newbies who might be nervous about
traditional cannabis consumption
methods including smoking and vaping,
something more " familiar " such as a
beverage could be a popular entry point.
That's part of the reason Ayr recently
acquired Levia, a Massachusetts-based
infused seltzer company. Levia sales
have surged in Massachusetts, and Ayr is
betting it can also happen in other states.
" Levia is a great way to bring new
people into the market because they are
already familiar with the seltzer (trend),
and that is something that will appeal
to people looking to replace alcoholic
beverages, " Finnerty said.
But edibles and infused beverages
are only a small portion of sales at
Highland Health, a marijuana retailer in
Trinidad, Colorado. General Manager
Ann DeMarco said the products are even
outsold by accessories at her location.
" As a consumer, it's because you
get a bigger bang for your buck with
the flower, " DeMarco suggested. " A
chocolate bar is $20 for 100 milligrams
(of THC). And we have a large
percentage of the population-myself
included-that gets absolutely no effect
from ingested cannabis, and so they'd
rather buy flower. "
62 MJBizMagazine | November-December 2021
A look at infused edibles and
beverage trends for September
in the combined markets
of CA, CO, NV, OR and WA.
Who's buying
Edibles
Women: 40%
9%
12%
16%
3%
Boomers
Gen Xers
Millennials
Gen Zers
5%
Women: 40%
6%
12%
18%
4%
Beverages
Boomers
Gen Xers
Millennials
Gen Zers
6%
May not add up to 100% due to rounding.
Source: Headset
Men: 60%
12%
18%
25%
Men: 61%
8%
17%
30%
MJBizMag November-December 2021

Table of Contents for the Digital Edition of MJBizMag November-December 2021
