DEMAND ANALYSIS

Demand analysis of the cannabis industry involves studying various factors that influence
the demand for cannabis products. Here's an overview of the demand analysis for the
cannabis industry:

1. Market Size and Growth: The global cannabis market size was USD 30.6 billion in 2021
and is projected to grow up to USD 62.1 billion in 2026.

2. Legal and Regulatory Environment: Cannabis in Mexico legal for both recreational and
medicinal purposes. It became legal for recreational purposes in June 2021, upon
application and issuance of a permit from the health secretariat, COFEPRIS (Comisión
Federal para la Protección contra Riesgos Sanitarios), and in the United States, the use and
possession of cannabis is illegal under federal law for any purpose by way of the Controlled
Substances Act of 1970 (CSA).
3. Consumer Segmentation:
Age range of a sample of 4,928 people how are interested in this topic,

Gender: TBD
Income level: TBD
Geographic location:

Type of use:
4. Product Preferences and Innovation: The most common versions are gummies, dropper,
cartridge (smoked), topical cream, and hair oil, according to our sample, this is the level of
preference of each one

5. Pricing Dynamics: The Cannabis market lacks pricing regulations, because it is not totally
controlled and standardized, so, there are a few alternatives such as, BDSA, to estimate
and regulate the pricing factors; on the other hand, we have other sources like media,
which get information from consumers by applying surveys, the results can tell us about
the market and pricing.

For example, in the Californian market, gummies are on average, priced 18% higher and
their sales have increased by 41% from the second quarter of 2020 to the second quarter
of 2021. Meanwhile, in Canada craft dried flower commands a price premium ranging
from 16% to 41%, depending on its THC level.

6. Social and Cultural Factors: The influence cannabis demand is marked by common
patterns and behaviors, like public attitudes, social acceptance, and perceptions of
cannabis use. We also have factors such as stigma, cultural norms, and evolving societal
views towards cannabis. People use to consume it as follows

7. Health and Wellness Trends: In the last year the influence of health and wellness trends
on cannabis demand grew, due to the interest in the potential therapeutic benefits of
cannabis, including pain management, anxiety relief, and sleep improvement.

8. Market Competitors and Branding: In US the top five brands of Cannabis are Kiva
confections, Plus products, Wyld, Big Pete’s treats, Sunderstorm, Smokies, among others,

9. External Influences: Advertising regulations, banking and financial services availability,

international trade restrictions, and evolving public policies related to cannabis.

By conducting a comprehensive demand analysis of the cannabis industry, stakeholders

can gain insights into market dynamics, consumer preferences, regulatory impacts, and
competitive factors. This analysis helps inform strategic decision-making, product
development, marketing campaigns, and overall business planning within the cannabis
industry.
References:

Cannabis Market Size, Research | Marijuana Industry Growth, 2030. (n.d.).

https://www.fortunebusinessinsights.com/industry-reports/cannabis-marijuana-market-
100219

Dorbian, I. (2021, November 8). New Cannabis Pricing Analysis Report Reveals Similarities
—And Differences—In North America Markets. Forbes.
https://www.forbes.com/sites/irisdorbian/2021/11/08/new-cannabis-pricing-analysis-
report-reveals-similarities-and-differences-in-north-america-markets/?sh=7d435b8e426f