The Growing Appeal of Topicals, Tinctures, and Capsules in the Cannabis Industry
The cannabis industry is rapidly evolving, with new products being introduced and growing in popularity. One segment that has been gaining traction is the market for topicals, tinctures, and capsules. While these products may not appeal to a broad demographic, they still have a loyal customer base and are worth considering for store shelves.
Regional Differences in Consumer Appeal
According to Jeff Finnerty, head of marketing at New York-based multistate operator Ayr Wellness, there are noticeable differences in consumer appeal across states. He notes that products like topicals, tinctures, and capsules, which have a wellness or medical connotation, perform better in states with a higher proportion of older cannabis consumers, such as Florida, compared to states like Nevada or California.
Normalization of Cannabis Use
Dominic Cundari, general manager at ArborSide, a marijuana retailer in Michigan, believes that as cannabis use becomes more normalized, these products will increase in popularity. Cundari predicts that topicals, in particular, will become more mainstream as cannabis consumption becomes a routine lifestyle habit.
In contrast to other cannabis product categories that are typically dominated by male consumers, topicals, tinctures, and capsules are marketed nearly equally to both men and women. Many products in this category, such as THC- and CBD-infused creams, lip balms, bath soaks, and transdermal patches, are marketed for beauty and wellness, traditionally appealing more to women than men.
The Power of Brands
Branding is also critical in this product segment. For example, Papa & Barkley, a California-based topicals brand, outsells the next 19 brands combined in that state, according to data from Seattle-based cannabis analytics firm Headset. This highlights the importance of developing strong branding to appeal to customers in this growing market.
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