The cannabis industry can look forward to a bumper day of trading on April 20 (aka 4/20) according to market insight from Nielsen and Headset.
The data analyst firms crunched the numbers for 2018 and found that 4/20 was the biggest day for marijuana sales by a considerable margin. There are a number of theories as to why 4/20 has developed into the special day for marijuana users, but the trend looks set to continue as young adults have embraced it.
Nielsen’s decision to cover the cannabis market is huge for the industry and you can expect to see its name popping up on a host of press releases, investor presentations, and press articles going forward.
Many associate it with providing TV ratings, but it is also huge in the FMCG (fast moving consumer goods) sector. It buys till roll data from retailers and supplements this with upweighted panel data based on interviews with thousands of shoppers to give an indication of how well thousands of products are selling.
Several alcoholic drinks brands will quote Nielsen figures in their press releases – provided they show the brand to be in growth – but it is the insight provided by Nielsen itself that proves really valuable to many. It provides an overview of the market, shedding light on which brands and retailers are thriving and which ones are struggling, while shining a light on key trading periods.
Many retailers use this data to plan their ranges and strategies, so it could become an important tool for anyone selling cannabis.
Nielsen has teamed up with Deloitte and Headset to enter the cannabis industry and its first report is now out. Headset has already been covering the market, but having a heavyweight partner like Nielsen on board gives it a great deal of credibility.
Nielsen is developing a full suite of cannabis measurement capabilities, inclusive of strategic partnerships and beyond, to help consumer packaged goods companies monitor the evolution of the legal cannabis space. It also aims to highlight potential help for the industry to mitigate threats and identify future opportunities.
The first report is based on data collected from cannabis retailers in California, Colorado, Nevada, and Washington State, which is then cross-referenced with data on 330,000 products and $4.5 billion worth of transactions to give an insight on market trends.
It highlights a 111% spike in cannabis sales on April 20, 2018. This is similar to the sales increase Nielsen sees for beer on St Patrick’s Day.
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