December Holiday Cannabis Sales Update

December holiday sales boosts an expected and anticipated component to most retail industries. Seen as the golden quarter for many businesses, the period spanning October through December is often crucial to a company's success.

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Cannabis is no exception despite the attention often focused on more pot-centric holidays. While true that 420, 710, and other cannabis-specific holidays do generate a massive boost in sales, so too do traditional holiday shopping seasons. Sleeping on either period is a mistake.

 

Like most industries, cannabis companies typically see a bump in sales beginning in November around Thanksgiving. The day before the holiday, also known as Green Wednesday, is the unofficial kickstarter of the holiday season. Data firm Fyllo reports that average dispensary sales increased by 5% in November. The following month saw 11% average increases. 

 

The week leading up to Christmas tends to produce a significant sales boost for most dispensaries. Data provided by Headset found that US and Canadian markets improved during the week. The firm reported that US sales increased 17% on average compared to the previous week. Canada saw a 26% jump in business during the period. In both markets, Headset found that topicals saw the most significant sales boost, with beverages and edibles trailing behind respectively in both markets.

Green Wednesday through New Years often gets the focus, but Halloween is no slouch either. Data from Surfside's 2022 Season of Green report found a surging sector in late October. The Friday before Halloween saw sales increase by 48% from the year prior. That year also saw Green Wednesday sales increase 72% and Black Friday sales jump 62% compared to 2020. Christmas Eve 2021 sales totaled a 40% increase from the year prior, while New Year's Eve increased by 54%.

Indoor consumption items are of particular interest this time of year. Surfside reported that December 23, 2021, sales for vapes spiked 63%, while edibles increased by 64%. Overall, the entire month saw strong performances as consumers bought in preparation for the holidays indoors and with loved ones.

 

Depending on the retailer or data firm, the numbers may vary. However, what appears clear is that December sales typically spike in cannabis like they do in other industries. The result is likely not surprising to anyone operating in the space. While cannabis is not traditionally linked to Thanksgiving or the holiday season, it is embedded into most people's daily habits. Those routines may change during the holidays, but as vape and edible sales indicate, rather than not consuming cannabis, most consumers shift to indoor, odorless options during the season.

 

With the time of the year so crucial to success, cannabis companies are encouraged to be proactive with their marketing efforts. In most cases, brands introduce sales, discounts or other benefits well before Green Wednesday. Sometimes, promotional ads will start around October or the Halloween holiday at the latest. As witnessed by various brand offerings, there is no one winning formula to succeeding during the holiday season. Instead, companies need to assess their market, buyers, and numerous other factors when determining their sales and marketing for the season.

 

We at FundCanna hope that everyone's sale season is strong and that you enjoy the holidays with your loved ones this year.

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