Marijuana industry watchers as well as retail buyers indicate that cannabis concentrates are registering more sales across the industry, particularly in mature markets. Frequent marijuana users are also taking a greater liking to concentrates.
Brightfield Group, a Chicago-based cannabis analytics firm, says approximately 29% of all marijuana consumers admit that they have used cannabis concentrates at least once during the past half year. Two years prior, that figure stood at 22%. Bethany Gomez, the managing director of Brightfield Group, says such a jump is significant in a space of only two years.
Mature cannabis markets also registered an even bigger increase of people who say they’ve used cannabis concentrates at least once during the recent six months. In Massachusetts, for example, the percentage rose from 13% to 20%, while in Michigan, users increased to 26% from 20% two years earlier.
Gomez explains that as more people use marijuana daily, their level of tolerance for the substance also increases, and that partially explains why there is growth in the use of concentrates. At the moment, data collected by Brightfield indicates that daily users of cannabis stand at 64% of all marijuana users. This is a significant driver of the concentrates market, because a lot more people are willing to try more potent products as tolerance levels rise.
Another surprising factor driving up the sale of concentrates is the current level of inflation. Gomez explains that as the purchasing power of people is weakened with rising inflation, heavy marijuana users see concentrates as offering value for money since their effects are stronger than the effects of other products, such as cannabis flower.
The positive strides made in packaging and branding of the concentrates has also played a role in making more of these products attractive to consumers.
Several markets have also seen concentrate prices decrease due to the reduction in the wholesale prices of cannabis flower as production grows at a higher rate than the rate at which demand is growing. For example, wholesale prices of dry cannabis flower have declined to less than $1,000 a pound in Michigan. Such a drop means that the raw material for concentrates is priced lower, and therefore the finished product will also be priced more affordably. These price changes are luring more people to try these products.
Innovations in the equipment required to consume concentrates have also helped. In the past, a dab rig was mandatory for one to consume concentrates. However, these products can now be consumed in vape pens and other such simple equipment, thereby rendering concentrates more appealing to consumers who aren’t sophisticated enough to use complicated equipment such as dab rigs. All these innovations mean that companies such as American Cannabis Partners can sell their marijuana products to significantly more people without sacrificing profitability.
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