The Talking Hedge

The convenience of prerolls is so irresistible to many cannabis consumers that preroll sales grew 46% last year.  

The growth in pre-roll sales even outpaced the already explosive cannabis market, which grew by only 54.2% over the same period.  

Infused prerolls have risen from 12.7% of all pre-roll sales in 2018 to 31.9% of all pre-roll sales in 2021.

Another trend is that consumers are buying multi-pack products rather than single pre-rolls. Sales of multipack pre-rolls grew by 69.4% from February 2020 to February 2021, while single pre-roll sales only grew by 18.1% over the same time period, according to the survey.

Episode 856 of The #TalkingHedge looks at 15 different machines that make joints, pre-rolls and blunts for the hemp and cannabis industry. These machines are for commercial use and most on the list are fully automated with a price tag of as much as $400,000, but can spit out as many as 60 per minute.

https://youtu.be/3dXaKT9VDaE

#Automation #Joint #preroll #blunt #CannabisTech #Automated #jointrollingmachine

While the cannabis industry always moves fast, recently some have been noticing a little bit of a market slowdown.

Growth through 2020 in all markets was substantial as the pandemic triggered lockdowns and stimulus checks that created both increased demand and increased disposable income. Sales growth of adult-use #cannabis soared in 2020 with many markets achieving 30%+ year over year growth.

Headset's hypothesizes the pandemic led to increased consumption in the cannabis enthusiast segment, which has decreased as society has returned to more in-person activities.

This sales growth has waned throughout the summer and fall of 2021, as consumers return to the workplace and re-engage in in-person activities like dining, travel, and entertainment. With cannabis consumption prohibited in most of the venues that house these activities (hotels, bars, concert halls, air travel, etc.), this may have contributed to decreased cannabis consumption.

Sales in 2020 should be treated as an anomaly and properly adjusted when used both for forecasting the future and measuring present growth to avoid the base problem.

Sales are slowing in mature markets, but argue that sales are simply returning to pre-pandemic levels. The remarkable growth that was seen in 2020 was unlikely to be sustained because it was achieved under the unusual circumstances of a global pandemic.

Episode 857 The #TalkingHedge dives into Headset’s report…

https://youtu.be/hveVo2oCYjc

#CannabisIndustry #CannabisData #MarijuanaData #CannabisAnalytics #MarijuanaAnalytics #CannabisSalesData #MarijuanaSalesData

Santa didn't deliver the Safe Banking Act, but New Mexico has the first financial institution in the country to become certified for outstanding U.S. monetary banking protocols in banking cannabis and hemp operation.

They'll ensure records are thorough, easily navigated, and readily available to fulfill law enforcement demands such as subpoenas and inquiries (for your protection, of course).

After credit card giant Visa warned banks about the misuse of cashless ATMs, several marijuana industry executives now believe retailers will be forced to revert to cash-only sales or to adopt other debit-card payment systems.

Criminal charges aren't expected, despite the conviction of two former Eaze executives for tricking banks into processing credit card payments.

The SAFE Banking Act was removed from the NDAA omnibus defense spending bill in Congress, which was the key to any meaningful federal reform in 2021 for the cannabis industry.

Both groups urged lawmakers not to approve SAFE Banking before passing a more comprehensive cannabis legalization bill, such as the MORE Act, which the House has approved multiple times but which the Senate has ignored.

Episode 856 The #TalkingHedge dives into benzinga & mjbizdaily articles...

https://youtu.be/uUqkUxkxwO0

Santa didn't deliver the Safe Banking Act, but New Mexico has the first financial institution in the country to become certified for outstanding U.S. monetary banking protocols in banking cannabis and hemp operation.

They'll ensure records are thorough, easily navigated, and readily available to fulfill law enforcement demands such as subpoenas and inquiries (for your protection, of course).

After credit card giant Visa warned banks about the misuse of cashless ATMs, several marijuana industry executives now believe retailers will be forced to revert to cash-only sales or to adopt other debit-card payment systems.

Criminal charges aren't expected, despite the conviction of two former Eaze executives for tricking banks into processing credit card payments.

The SAFE Banking Act was removed from the NDAA omnibus defense spending bill in Congress, which was the key to any meaningful federal reform in 2021 for the cannabis industry.

Both groups urged lawmakers not to approve SAFE Banking before passing a more comprehensive cannabis legalization bill, such as the MORE Act, which the House has approved multiple times but which the Senate has ignored.

Episode 856 The #TalkingHedge dives into benzinga & mjbizdaily articles...

https://youtu.be/uUqkUxkxwO0

Montana cannabis businesses are gearing up for the scheduled Jan. 1 launch of the nation’s newest adult-use program in a market projected to top $300 million in annual sales by 2025.

Existing medical marijuana businesses will get an 18-month head start to sell adult-use cannabis products before new entrants can qualify.

On the surface, there’s plenty of MMJ businesses: 437 licensed dispensaries, 392 cultivators and 208 processors, according to the state’s September market report.

The market for cannabis is larger than the consumption of Montana's residents, relying on tourism to make up the difference.

Episode 855 The #TalkingHedge looks at MJ Biz Daily’s article…

https://youtu.be/Ld5QaKmQZGQ

Topicals Data & Performance

Market share trends over the past few years show Topical products have been approaching a stabilization around 0.8% of the total markets in the United States and Canada.

When we separate legacy and non-legacy markets in the United States, we notice that the market share of Topicals in the new adult-use markets is less than in legacy US markets.

Looking at all states and provinces individually, we see that Topicals are doing particularly well in Colorado, accounting for 1.33% of all sales in the third quarter of 2021.

Within the Topicals category, Lotions, Salves, Gels and Creams make up a majority of category sales with 74.5% of all Topical sales in United States markets and 53.4% in Canada.

Episode 854 The Talking Hedge dives into Headset’s article…

https://youtu.be/L2g-o_wSUbE

#CannabisIndustry #CannabisData #MarijuanaData #CannabisAnalytics #MarijuanaAnalytics #CannabisSalesData #MarijuanaSalesData

If you work in or follow the cannabis industry you’ve seen the steep decline in wholesale flower prices across many of the longer-established, adult-use markets. 

This isn’t uncommon, but most of us didn’t anticipate such a steep decline in 2021 after such a strong 2020 sales year.

There were lessons that should have been learned from the past market fluctuations, especially for those in mature markets that have seen massive price swings in their past. 

The problem really comes down to a lack of data or paying attention to it. Business owners, especially cultivators, often make knee-jerk reactions based on short-term market booms rather than looking at historical and projected data. 

Episode 853 of The #TalkingHedge dives into BDSA's report on the causes and effects as well as go through features Apex Trading provides that can help withstand the market downturn…

https://youtu.be/HQE5jsBYlNg

#CannabisIndustry #CannabisData #MarijuanaData #CannabisAnalytics #MarijuanaAnalytics #CannabisSalesData #MarijuanaSalesData

Two broad themes have fueled the expansion of legal access to cannabis globally – growing acceptance of the plant’s therapeutic value, and recognition of the industry’s potential as a catalyst for economic growth.

Legal regulated markets captured 6% of total global spending on cannabis in 2020 and North America accounted for 97% of those sales, estimated to be $51 billion by 2025

Cannabis consumers globally spent an estimated $415 billion on high-THC cannabis and cannabis products in 2020, with annual spending projected to climb to $496 billion by 2025 (at a CAGR of 3.6%).

With consumers’ tastes and preferences evolving alongside new product development — even in markets which are not yet legal — the pace to reach mature product landscapes in newly and future legalized markets is expected to continually accelerate.

Virtually every sector of the industry saw blockbuster investments as companies raced to enter new markets, expand operational capacities, and acquire novel intellectual property.

Episode 852 of The #TalkingHedge dives into New Frontier Data’s report…

https://youtu.be/968t07N5YS0

#CannabisIndustry #CannabisData #MarijuanaData #CannabisAnalytics #MarijuanaAnalytics #CannabisSalesData #MarijuanaSalesData

Washington state rolled out its own cannabis seed-to-sale traceability system after having relied on the private sector for years, but so far, the government-run platform’s debut this month has been less than smooth.

Business owners say the new system is riddled with bugs and glitches, costing companies thousands of dollars in lost time and extra employee hours to comply – all when the industry is gearing up for the Christmas shopping rush.

Some processors have stopped shipping products entirely because their third-party software isn’t working. Everything takes longer, there are more mistakes, processes have to be repeated, we’re all stuck waiting for the LCB system to get online.

They will patch it and fix it, and eventually we’ll have something that works.

Episode 851 The #TalkingHedge discusses MJBizDaily’s article with Jerry Tindall, CEO/Founder at Soro Software…

https://youtu.be/EShH2fTsjWM

2021 has been a positive year for #cannabis. US states are falling like dominos as they #legalize more and more #MMJ and adult-use cannabis markets.

The Canadian #cannabismarket continues to grow on several fronts, including overall revenues, store openings and successful brand launches.

With other sizable countries and economies like Mexico and Germany considering cannabis reform, the world of cannabis is widening. In the US alone, Brightfield forecasts $50 billion in sales by 2026.

Episode 850 The #TalkingHedge dives into Brightfield Group’s report…

https://youtu.be/tcXgeHIEUtk