What We Expect to See Out of 2020 Trends in the Cannabis Industry
It’s a major election year, and with it, another year for the cannabis industry to continue to grow—in size, in revenue, and in public appeal. By 2023, the cannabis industry is estimated to be worth between $25 and $30.4 billion.[1] For cannabis brands, old and new, it’s vital to stay updated on the 2020 trends affecting the industry. Let’s discuss a few of them here.
Consumption Levels Rising
More people are (openly) using cannabis than ever, and this includes certain demographics in particular. From 2009 to 2016, the growth rate of cannabis users in the United States was 38%, and the number of female users grew 46%. Another area where use greatly increased was full-time employees, where the growth rate for this time period was 53%.[2]
Educate and Inform
Due to the increase in accessibility of cannabis, consumers are becoming better informed about cannabis itself.[3] For example, one contributor to the increase of usage by women is that more women are using it to manage things like menstruation, menopause, and other related issues that follow those circumstances.[4] Other products, like the MyDx handheld chemical analyzer, are being employed to discover the true chemical profile of the cannabis being consumed by average users and phase out counterfeit cannabis products.[5] Consumers expect to not only know more details about the cannabis products they are searching for, but they hope to continue to be educated by cannabis brands as well.
Health & Wellness Still Growing
After the legalization of hemp—a strain of the cannabis sativa plant that has no psychoactive effects with 0.3% THC content or less—the CBD industry is booming, with consumers jumping on new health and wellness products that utilize the ingredient. The CBD industry is expected to rise to $20 billion by 2022, and it is being used in everything from skin creams to FDA-approved seizure medications for rare forms of epilepsy.[6]
Political Change
As we already mentioned, the majority of U.S. states have legalized medical marijuana, with a third of those states legalizing recreational, too. This year, six other states have the chance to legalize recreational, or full adult-use, cannabis—Arizona, Arkansas, Florida, Missouri, New Jersey, and South Dakota. New Jersey, for example, is planning a referendum for the 2020 presidential election ballot, leaving the decision to fully legalize recreational cannabis to the voters.[7] Two-thirds of Americans support the legalization of cannabis.[8] The tide on legal cannabis is turning, and lawmakers are declaring their recognition.
Cannabis Marketing
As legal cannabis still faces heavy regulation, especially in terms of advertising, brands are testing various tactics to get the word about their brand out to the public. Many brands are finding success in curating lifestyle content, including Buzzfeed-style quizzes, powerful storytelling that humanizes cannabis users, and education about cannabis. While traditional advertising is still off-limits in many aspects, partnerships with local media and publishers within the cannabis space, email marketing campaigns, large-scale digital campaigns, and word-of-mouth tactics like referral rewards and loyalty programs are on the uptake.[9] The most critical point for marketing cannabis brands is staying up-to-date with the current regulations around cannabis marketing, which are constantly changing and often complex to navigate. Many brands are turning to specialized marketing agencies to stay on top of the changes and produce quality content for marketing.
One of the best tactics for marketing your cannabis brand in 2020 is teaming up with a specialized marketing agency who understands the changing trends and regulations of legal cannabis. If your brand is in need of marketing help—whether its branding, web design, or integrated digital marketing—Herban Creative is the agency that knows the rules and has the skilled team to work safely and effectively within them. Contact our team today to get things rolling.
[1] Haynie, Shana. “Cannabis Advertising Trends for 2020.” Hearst Bay Area, Hearst Communications, Inc, 4 Nov. 2019, marketing.sfgate.com/blog/cannabis-advertising-trends.
[2] McCoy, J.J. “The Future of Cannabis: Trends to Watch Out For.” High Times, 12 May 2019, hightimes.com/business/the-future-cannabis-trends-watch-out-for/.
[3] Williams, Sean. “6 States Trying to Legalize Recreational Marijuana in 2020.” The Motley Fool, The Motley Fool, 17 Nov. 2019, www.fool.com/investing/2019/11/17/6-states-trying-to-legalize-recreational-marijuana.aspx.
[4] McCoy, J.J. “The Future of Cannabis: Trends to Watch Out For.” High Times, 12 May 2019, hightimes.com/business/the-future-cannabis-trends-watch-out-for/.
[5] MyDx, Inc. “The Biggest Lie In Cannabis.” PR Newswire: Press Release Distribution, Targeting, Monitoring and Marketing, 27 June 2018, www.prnewswire.com/news-releases/the-biggest-lie-in-cannabis-300606896.html.
[6] Carpenter, David. “Legal Hemp In 2019 May Be A Boon For Stressed Out American Farmers.” Forbes, Forbes Magazine, 21 Dec. 2018, www.forbes.com/sites/davidcarpenter/2018/12/20/legal-hemp-in-2019-may-be-a-boon-for-stressed-out-american-farmers/#67dbe4098f3b.
[7] Sutton, Sam. “New Jersey Marijuana Legalization Bill Dead; Lawmakers Will Let Voters Decide.” Politico PRO, 19 Nov. 2019, www.politico.com/states/new-jersey/story/2019/11/18/new-jersey-marijuana-legalization-bill-dead-lawmakers-will-let-voters-decide-1227894.
[8] Daniller, Andrew. “Two-Thirds of Americans Support Marijuana Legalization.” Pew Research Center, Pew Research Center, 14 Nov. 2019, www.pewresearch.org/fact-tank/2019/11/14/americans-support-marijuana-legalization/.
[9] Haynie, Shana. “Cannabis Advertising Trends for 2020.” Hearst Bay Area, 4 Nov. 2019, marketing.sfgate.com/blog/cannabis-advertising-trends.
