As the retail cannabis industry surges forward at a rapid pace, the future is very much uncharted territory. The end of the year is a time to set budgets, strategies, and goals to prepare for what’s coming next. While the future is yet unwritten, there are a few trends retailers and brands can expect to see in 2023.
To help shed light on what’s next in retail cannabis, our industry experts shared their predictions on the top trends affecting the cannabis industry in the coming year.
Denise De Nardi, Chief Sales Officer of Native Roots Cannabis Co., shared her thoughts on what the coming year will bring.
As legal cannabis products become more and more mainstream, new consumers will embrace cannabis products for the first time.
Health & wellness will become a main conversation
There will be more conversations regarding cannabis for health and wellness versus recreational use. Dispensaries should look to traditional retail markets for clues on how to bridge the online and in-store experience. Examples include live chats, virtual showrooms, live product demonstrations, and hyper-personalized shopping experiences.
Expect decline in mature markets
As the industry continues to experience growth, mature markets will experience a decline as new stores and brands flood the market. To stay lean and viable in the coming year, Denise predicts businesses will pivot to focus on profit rather than top-line revenue while learning to operate more efficiently to protect margins.
Additional trends to watch from Denise include:
- Continued problems with excess supply which will persist in compressing prices.
- A focus on social equity through licensing and partnerships.
- An increase in social consumption, delivery and hospitality services.
Dalyn Oakes, Director of Growth at JARS Cannabis also believes that the market will go mainstream.
As the kid in a candy store feeling gives way to normalcy, customers will demand ease and convenience from the cannabis retail experience.
Cannabis delivery will soar
Stores will continue to search for better ways to save customers time and add value to the experience. Home delivery of products will become commonplace in 2023. Current markets where delivery is available are witnessing 65% of dollars spent in that channel. Additionally, stores will continue to move towards in-store convenience such as buying online and picking up in the store (BOPIS) and staying open 24 hours.
Industry-specific apps will be necessary to connect with consumers
The cannabis industry has always struggled to communicate with customers. With more regulations coming down every day, it’s becoming harder to effectively message to your base. To meet this need, we will see industry-specific apps becoming more prevalent. Weedmaps and Leafly are two such apps already making waves.
In-store displays will help brands tell a story in the retail space
Lastly, brands will expand within the retail space bringing a more collaborative look and feel with built-out displays that showcase their products.
Matt McDowell, Senior Sales Manager at SparkPlug shared sales trends and market expansion he predicts in 2023.
Prerolls, disposable vapes and THC beverages will trend
Prerolls are going to continue to lead the pack and own sales at dispensaries. Closely behind, disposable vapes will continue to be on the up and up as well as low THC beverages as consumers look to non-alcoholic alternatives.
New markets will take off
Rec markets such as Maryland, Missouri and New Mexico are expected to take off quite fast in the first couple of quarters of 2023. We have experienced a lot of companies getting setup with operations in those specific areas.
All of us here at SparkPlug are excited to see what everyone is going to put out in 2023 and we will be paying attention closely and along for the ride.
Connect with SparkPlug today to discover how we can keep your cannabis organization ahead of the curve.