The rapid emergence and growth of the global legal marijuana market are expected to drive a boom in the next few years. The market was valued at $17.8 billion last year. The market is estimated to grow at 25% annually until 2030. As the number of players in the market increases, they’re investing in marketing and advertising to expand their brand awareness and attract more customers. Today we will look at industry trends that will arise in 2023.
Entertainment Push
Due to the complexity of the legal marijuana industry, many companies have to deal with various regulations and compliance issues when marketing their products. One of the most significant factors that prevent them from effectively reaching their target audiences is the lack of support from social media platforms. This is why many marijuana brands are now turning to the music and entertainment industries.
Product Innovation
By investing in innovation, both cannabis and hemp brands can reach more consumers. In the past, around 80% of all sales were attributed to the flower. However, this number has since dropped to 47%. Most consumers are also attracted to various infused and manufactured products.
The growing popularity of cannabis-infused drinks has been attributed to the broader consumer interest in new and health-conscious beverages. This segment is expected to grow faster in the next couple of years. Currently, it is the smallest within the consumption category, but it has experienced the fastest growth rate over the past couple of years.
Out-of-home Advertisements
Despite the traditional nature of out-of-home advertising, marijuana brands are still investing in advertising on billboards and signs. This is because it is one of the few channels they can use to reach their target audiences. It is also vital for marijuana brands as it allows them to avoid worrying about their ads being taken down.
Wellness Movement
Due to the increasing number of consumers interested in wellness, the opportunity for marijuana brands to expand their reach is becoming more lucrative. Since marijuana brands cannot make unsubstantiated medical claims, they have resorted to the testimonials of their fans in their marketing campaigns to convince consumers that their products are genuinely relaxing. With the rising number of people interested in wellness, experts believe that the opportunities for marijuana companies will continue to grow.