Deciphering Data: Unveiling 4/20/2024 Insights
As the cannabis industry continues to grow and evolve, 4/20 serves as a pivotal moment for retailers to analyze trends and glean insights into consumer preferences. Recently, Mike Hosty, Customer Success & Training Specialist at 240 Logistics, hosted a Post-420 Webinar where he reviewed the data from 4/20/2024, explored trends and insights, and highlighted upcoming FlyWheel features intended to revolutionize the way cannabis dispensaries leverages their inventory and labor.
Interested in learning more? Check out the entire webinar recording here.
Consumer Data
Across the nation, the average basket price the week of 4/20 stood at $61.41, with consumers purchasing an average of 2.7 items per transaction. However, because of the unique structure of each market, it’s worth looking at specific key markets to get a better understanding of the current state of the industry:
Oregon: Consumers in Oregon exhibited a lower average basket price of $36, paired with a modest average basket size of 2 items – Potentially demonstrating that 4/20 isn’t as big of a deal in the more mature markets.
New Jersey: In contrast, consumers in New Jersey showcased a significantly higher average basket price of $112, coupled with a slightly larger average basket size of 2.5 items.
California: The Gold State witnessed a robust average basket price of $92, with consumers opting for a larger average basket size of 4 items.
Massachusetts: Massachusetts mirrored California in terms of average basket price at $91 but showcased a slightly smaller average basket size of 3 items, demonstrating the vast differences in prices from the East Coast to the West Coast
Product Category Data
While flower always reigns supreme, and this year was no different, this year, the product category to watch was pre-rolls. Pre-rolls experienced significant growth, with pre-roll pack sales increasing +17%, and infused pre-roll sales increased by +7%. This surge in popularity can be attributed to several factors, including the convenience and approachability of pre-roll products.
What Does It Mean?
East Coast vs. West Coast Spending Patterns: The differences in the spending behavior in New Jersey versus the spending behavior in California demonstrates the tale of two coasts – East Coast and West Coast. Despite both states boasting high average basket prices, California consumers exhibited a larger average basket size, indicating a propensity for bulk purchases. In contrast, consumers in New Jersey showcased a smaller average basket size, suggesting a more selective approach to purchasing on 4/20
Marketing Maturity and Consumer Behavior: The data from Oregon, a mature cannabis market, suggests that 4/20 might not hold the same significance compared to emerging markets. The lower average basket price and most basket size in Oregon could be indicative of a more subdued celebration of the event, driven by factors such as market saturation and consumer fatigue.
East Coast-West Coast Price Disparities: The similarities in average basket prices between Massachusetts and California, despite significant differences in average basket sizes, underscore the vast price disparities between the East and West Coasts. Despite similar spending levels, consumers in Massachusetts opted for fewer items, indicative of potentially higher product costs or a preference for premium offerings in the East Coast market.
Convenience Drives Consumption: The surge in pre-roll sales underscores a broader trend towards convenience-driven consumption habits among cannabis consumers. We believe convenience will continue to drive consumer preferences, a trend several MSOs are already monitoring, as evidenced by this year’s earnings calls where several companies made note of their intentions to expand into the cannabis beverage sector.
FlyWheel Powered by 240 Logistics
Looking beyond the present, FlyWheel is committed to enhancing its offerings to meet the evolving needs of cannabis retailers. Through investments in better technology, reporting, and solutions, FlyWheel aims to provide retailers with the tools and insights needed to thrive in a dynamic market environment.
With FlyWheel’s continuous support and innovative solutions, cannabis retailers can confidently navigate challenges and unlock new opportunities for growth.
Ready to get started? Reach out to us today https://www.240logistics.com/contact.
