Cannabis Consumer Trends of 2022
As the legal cannabis market progresses, new trends have emerged, making purchasing cannabis easier for the consumer. In this post, we will cover the top trends in the market in 2022 that make the buying experience more convenient. Dispensaries that offer these services are more likely to survive in the highly competitive cannabis industry.
Understanding trends in the market is only half the battle. Dispensaries are faced with regulations and challenges handling payment processing that don't affect other types of products. Once we go over the latest consumer trends, we will provide an all-inclusive software solution built for the cannabis industry that helps businesses handle transactions, customer relations, and loyalty rewards.
Cannabis Delivery
The most significant shift in the cannabis industry in the last 5 years has been delivery. Due to the COVID-19 pandemic direct to consumer sales has skyrocketed from 76.68 billion in 2019 to 129.31 billion in 2021. Statista predicts that D2C sales will hit 175 billion by 2023.
Offering delivery is essential for dispensaries in 2022. Consumers have become accustomed to the convenience of cannabis delivery. In addition, many medical patients aren't comfortable with purchasing products in-person.
While regulators have allowed 3rd party cannabis delivery in most states with a recreational marijuana program, the process is challenging to manage for the dispensary. In addition, tracking and sales analytics are usually less than optimal from 3rd party services, creating a disconnect between the retailer and consumer.
Dispensary Curbside Pickup
Curbside pickup is another trend that has taken off since state governments granted dispensaries' essential business' classification. Ordering cannabis products for pickup offers a safe and convenient alternative to waiting indoors to make a purchase.
Moving forward, delivery and curbside pickup aren't optional for cannabis dispensaries. However, managing the consumer journey from an online menu to preparing the products in-house and meeting the customer outside is challenging for retail operators.
Buying Weed with Mobile
Dispensaries that offer easy payment solutions will inevitably see an increase in sales. Paying in cash is a massive inconvenience to customers, especially with millennials and Generation Z. Cash payments made up less than 20% of all transactions, and surveyed consumers reported that they are willing to pay up to 100% more when using a credit card. Furthermore, 80% of cash transactions are for payments under $25.
Mobile wallet payments are the future of all transactions. Dispensaries need to offer a way for customers to utilize contactless payments. According to Forbes, retailers saw a 69% increase in mobile payments during the pandemic. Adoption rates will only increase as more consumers use mobile wallets.
As payments become easier, buying cannabis remains one of the most difficult products to purchase. Staying competitive in the industry requires dispensaries to find a solution to accept credit cards and offer contactless payment to increase the convenience of the transaction.
The challenge for most dispensaries is finding an affordable payment transaction provider that offers the convenience of card and contactless payments with reasonable fees. This wasn't possible in the early days of cannabis legalization, but as banking institutions become more tolerant of cannabis, several viable solutions will be available in 2022.
Cannabis Dispensary Loyalty Programs
Buying cannabis is an intimate experience, unlike any other consumer product. As a result, customers want to support a small number of dispensaries and build a relationship with the staff. One way to capture consumer support is by offering a loyalty program.
In the past few years, the trend has taken off and is returning incredible results for retailers who utilize a program effectively. MJBizDaily reports that dispensaries using a cannabis loyalty program saw an increase in basket spend, items per basket, and item price.
Data from cannabis stores in Washington State collected by analytics firm Headset found that over 90 days, dispensaries saw a 13% increase in average basket spend compared to retailers that don't use a loyalty program.
Customers are also more likely to be aware of discounts if they have a digital connection to a dispensary. The marketing challenges in the cannabis industry require dispensaries to offer more incentives to drive sales, but communication is difficult. Loyalty programs effectively capture personal information and offer discounts directly to the consumer's mobile device.
Recently the trends in the cannabis industry have coincided with global consumer habits due to the pandemic. The shift in digitalization offers an incredible opportunity for dispensaries to create a seamless customer experience.
See how Portal42 can help your team stay ahead of consumer trends.