Business
3 million new cannabis consumers on horizon with legalization of “2.0 products”
3 million new cannabis consumers on horizon with legalization of “2.0 products”.
About this update from Lift & Co Corp
[{"type":"text","content":"\nNearly three-quarters of current consumers are not loyal to a particular product or brandOne-third of non-consumers say they don’t know enough about cannabis to consume itAnticipated new consumers are most interested in baked goods, confectionery products TORONTO, Aug. 15, 2019 (GLOBE NEWSWIRE) -- Canada could see as many as 3 million new consumers enter the cannabis market due to legalization and availability of edibles, extracts and topicals (together referred to as “2.0 products”) according to a survey conducted by EY Canada and Lift & Co. (TSXV: LIFT) (OTCQB: LFCOF). That figure represents the conversion of approximately 12% of current non-consumers.\n “New product offerings will open the doors for experimentation among current and non-consumers giving cannabis companies the opportunity to capture a larger market share,” says Monica Chadha, EY Canada Cannabis Leader. “But companies should keep in mind that these consumer segments will have very different attitudes towards cannabis and product formats, ultimately driving the need for differentiated customer experiences.” Current cannabis consumers make up 17% of the Canadian adult population according to Statistics Canada. The survey from EY and Lift & Co. finds quality, intended effects and potency are some of the most important criteria for consumers evaluating purchases, with less focus on the brand. Data indicates that 70% of current consumers who purchase through brick and mortar retail channels do not know what product or brand they are going to purchase prior to entering the store. “Understanding the nuances of your customers’ values and interests, and having the right tools to determine these, are key,” says Matei Olaru, CEO for Lift & Co. “The right data will allow companies to continually innovate, create value for consumers and build customer loyalty.” Contrary to current consumers, the non-consumer segment is less concerned with potency and price and places more emphasis on clinical research and recommendations from health care practitioners to make purchasing decisions. One-third (33%) of non-consumers surveyed report not knowing enough about cannabis to consume it. Going forward, they indicate an interest in experimenting with low dosage baked goods, confectionery and food addi...