February 6, 2020 - Chicago, Illinois - In their recent report, Brightfield Group, the leading consumer insights and market intelligence firm for the CBD and cannabis industries, provides an updated look at Canada’s cannabis market following the rollout of Cannabis 2.0. Currently, 35% of Canadian cannabis consumers are unaware of which brand they purchase, signaling massive opportunities for LPs to leverage brand differentiation and consumer segmentation. The market is estimated to grow to $8.2b through 2025.
Key highlights from the data:
- Initial store visits to Canadian dispensaries indicate that both vapes and edibles are extremely popular, with the latter often selling out within hours of re-stocking. Edibles are incredibly popular with new consumers while vapes are attracting more experienced cannabis consumers.
- Companies face product marketing challenges due to strict regulations. They are prohibited from communicating about price or distribution, using any designs that would appeal to young people, testimonials, and many more. On social media, restrictions have resulted in two primary tactics:
1. Making social media posts that are divorced from the cannabis products they sell but nonetheless serve to build a specific brand image
2. Making factual posts about the status of the company’s operations, including recent news and profiles of those working at the organization.
- The competitive landscape in Canada is becoming more closely aligned to the US in that companies are expanding their points of differentiation to stay competitive. Brands now have an opportunity to better distinguish themselves through these now legal product formats which can be unique in terms of flavor, texture, packaging, color, pricing, and product effect.
“Brands have immense opportunity to differentiate themselves now that new product formats have opened up,” Brightfield Managing Director, Bethany Gomez, explains. “The competitive field is actually wide open, even for smaller brands that are able to resonate with the right consumers and create truly innovative products.”
About Brightfield: Brightfield Group is the leading consumer insights and market intelligence firm for the CBD and Cannabis industries. They work with well-known brands, manufacturers, and agencies across the world, providing strategic data, insights, and guidance for these dynamic markets. Leveraging a unique multi-source approach, Brightfield Group delivers a holistic, forward-looking view into the everchanging brand, market, and consumer landscape.