Constructing With, Not From, Medical Markets


We interrupt your regular feed of CBD-related content material to debate the way forward for adult-use cannabis states. Notably, with Illinois’s cannabis legalization signed into legislation and the market set to open in early 2020, it’s time to take inventory how client conduct will shift in that market, in addition to different medical markets which will transition to adult-use within the close to time period, together with New York, New Jersey, Florida, Arizona, Ohio and New Mexico. It’s additionally time to overview why medical customers should stay a spotlight for cannabis firms.

Within the spring of 2018 we set to learn the way self-defined medical customers of cannabis had modified their behaviors as soon as the states they had been residing in legalized adult-use cannabis for our Medical Hashish Shopper report. As a way to take a consumer-centric view, we merely requested respondents in the event that they use cannabis primarily for leisure or medical functions. The latter shaped the “medical consumer” group.

These medical customers reported shifts of their utilization of cannabis and different merchandise submit adult-use legalization of their residence states.:

  • Over 1 / 4 of medical customers reported that they had been utilizing extra typically than earlier than adult-use legalization
  • Edibles and topicals emerged as the 2 classes customers indicated that had been consuming extra of post-legalization
  • Half of medical customers had been nonetheless utilizing their medical card for cannabis purchases, which means half had been now not utilizing their card
  • Utilization of over-the-counter ache relievers and sleep aids, in addition to prescription ache relievers and anti-anxiety drugs dropped

(For extra detailed findings from this report, please discover our free whitepaper, accessible right here)

Our findings match lots of the gross sales knowledge reported by varied shops, exhibiting medical cannabis gross sales shrink after adult-use legalization, whereas leisure or adult-use gross sales drive the market.

Medical Customers Don’t Disappear

As we gear up for Illinois (and presumably others) to enter the adult-use market, it’s vital to acknowledge that these medical customers don’t disappear, nor ought to they be forgotten for primarily supporting a authorized cannabis market of their state. Their utilization will virtually definitely change and broaden as famous above, whereas their medical playing cards could also be left at residence.

Regardless of official medical card utilization and gross sales declining, it’s additionally true that customers report utilizing cannabis for a wide range of causes depending on the event no matter legalization standing. In the future it might be to cut back anxiousness earlier than a social gathering (maybe a “medical” purpose for the patron) and the following day it might be to reinforce a live performance expertise (maybe a “leisure” purpose). Basically, customers vacillate between medical- and adult-usage on a day-by-day and occasion-by-occasion foundation.

Medical Customers Ought to Not Be Left Behind

So why the decision to recollect these customers? It appears as if cannabis producers are giving these customers brief shrift as all eyes flip towards the greenback indicators of a bigger adult-use market. Product shortages have been reported in medical markets earlier than adult-use “go stay” dates and customers and dispensaries have been confronted with a extra restricted choice as producers stockpile stock. (See Canada and Illinois) In an odd twist, this dynamic typically drives the medical customers to the black market to get the product they need, which looks as if a perverse manner for an trade to deal with its greatest clients.

For dispensaries and cannabis product producers, the expansion from new customers may be very thrilling, however the medical consumer neighborhood is the built-in cannabis buyer base. The opening of recent adult-use markets represents huge alternative for cannabis, however the enthusiasm that comes from these markets’ potential have to be matched with a recognition of how that market was constructed, by whom, and why.





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