Despite Inflation, 420 Will See Surge In Weed Sales, Says Top Researcher

Despite some of the storms the U.S. legal cannabis industry has been weathering recently, such as inflation, things seem to looking up for one important holiday—420. According to top cannabis researcher BDSA, cannabis sales on this coming 420 will experience a substantial boost. However, the impact of the holiday will differ significantly when comparing mature markets and emerging ones.

Key trends that BDSA predicts for 420 this year include:

*All markets will see a sales bump on the holiday, but emerging markets (including Arizona, Florida, Illinois, Maryland, Missouri, New Jersey and Pennsylvania) will experience a more substantial increase in total dollar sales;

*With 420 falling on a Thursday this year, the biggest sales boost for the holiday week is expected to come on the holiday itself;

*Mature markets and inhalable products will see the biggest discounts, as mature markets continue to experience decreased average retail prices compared to emerging markets; and,

*Social consumption and low price will be the main drivers of cannabis purchases on 420.

Even with inflation being a problem for the legal cannabis markets, the bullish 420 forecasts seemed to be on track, noted Brendan Mitchel-Chesebro, an analyst at BDSA.

“While inflation has been an issue over the past year, legal cannabis markets have seen significant price compression since late 2021,” he explained. “BDSA retail sales tracking data show that equivalent average retail prices fell about 26% across mature markets between January 2022 and January 2023, so while inflation may be hitting consumers hard, legal cannabis has only become more affordable.”

Past consumer behavior factor into the positive sales projections. “BDSA seasonality data shows consistently heightened sales on 420,” continued Mitchel-Chesebro. “The date’s importance within cannabis culture naturally leads to more retail traffic and sales on 420, and retailer efforts to capitalize through advertising, promotions, and discounts enhance that innate consumer enthusiasm.”