Top cannabis researcher predicts double-digit increase in sales on July 4th
A top cannabis researcher is predicting that despite valid concerns surrounding inflation, sales on July 4th will generate a double-digit increase, likely racking up the highest number in sales for any day in the market this summer.
The reason for this surge? “Cannabis is a ‘sticky’ good and the market is resilient,” said Roy Bingham, co-founder and CEO of Colorado-based BDSA. “We predict that summer cannabis sales will remain steady, peaking around the 4th of July holiday.”
Also, with more people travelling and many social activities commencing after the COVID-19 restrictions of the last two years, the summer season’s festivities will be especially pronounced.
According to BDSA, these rosy projections are based on sales from the previous year. Last year, in California, the largest legal cannabis market in the U.S., July 4th amassed the highest daily dollar sales for that month, pulling in a total that was 30% higher than the daily sales average for July 2021.
A big factor for these bullish July 4th estimates is the consumption of cannabis beverage brands. While beverages remain a small percentage of total cannabis retail dollar sales (1% to 2%), beverage availability has greatly increased over the past years, reported BDSA. The company’s data showed that these brands increased about 25% between the first quarter of 2020 and the first quarter of 2022.
The researcher also found that a majority all alcohol consumers (56%) aged 21 and over also consume cannabis. This is a 7% increase since the fourth quarter of 2020. BDSA expects co-consumption of cannabis with alcohol to be a part of the summer celebrations for a growing number of revelers.
Cannabis may be competing with craft beer on the holiday weekend as nearly 40% of those polled indicate summer celebrations where craft beer is typically consumed alongside cannabis.
Founded in 2015, BDSA provides data on the cannabis market to retailers, manufacturers, brands, wholesalers, and investors. The company’s founders are Liz Stahura and Bingham.
