I. Introduction
In 2023, the cannabis industry is predicted to face several changes that will impact the way businesses approach marketing. To successfully navigate these changes, it is essential to understand and master emerging trends. As Forbes reports, “the key to success in the cannabis industry in 2023 will be mastering the art of effective marketing.”
II. Market Growth and Legalization
Public support for cannabis legalization is at an all-time high, with 88% of adults in favor of legalizing weed. As of January 2023, 21 states and Washington D.C. have legalized adult-use cannabis. With the growing demand for cannabis products, the industry is expected to add nearly $100 billion to the economy. However, as competition increases, so do regulations, and businesses must comply with advertising and marketing rules.
III. Product Variety
The cannabis industry is experiencing a surge in product variety, including new strains, cannabinoids, and overlooked products like beverages. To gain a marketing edge, businesses must promote new varieties and diversify their portfolios. According to MJ Biz Daily, the industry’s total cannabis supply will exceed 48.8 million pounds in 2023.
IV. New Cannabinoids
The cannabis industry is also seeing an emergence of other compounds besides THC and CBD that have benefits for people. As more research is conducted, there is a growing recognition of terpenes and their role in the entourage effect, where different compounds work together to create a more significant impact than they would individually. This newfound understanding of cannabinoids and terpenes is leading to new product formulations and marketing opportunities.
According to Jushi’s independent poll, consumers are considering factors such as THC potency and price when purchasing cannabis, rather than branding and strain type. Brands can take advantage of these new compounds for marketing purposes, promoting the benefits of their products’ unique cannabinoid and terpene profiles.
V. Diversity and Customer Growth
As the legalization and growth of the cannabis market continues, it is opening up niche markets and providing opportunities for brands to embrace diversity and use divergent approaches in their marketing strategies. According to the YouGov poll, adults between the ages of 45 and 64 are the most likely to have tried marijuana, followed by liberals, Americans who live in the Western US, and white Americans. This data highlights the importance of understanding and targeting different demographics.
Brands can use inclusive and diverse marketing strategies to reach new and underrepresented customers, creating a sense of community and brand loyalty. Cannabis marketing agencies can help brands with this by developing targeted campaigns that resonate with different demographics and communities.
VI. Increased Knowledge
The expansion of the cannabis market is leading to new possibilities for education. Brands can use education to eliminate prejudices and foster knowledge about cannabis. As more people turn to cannabis for both recreational and medical purposes, there is a growing need for information about dosing, strains, and safe consumption.
Brands that can provide this information and education can build trust with their customers, who are increasingly demanding transparency and honesty from the cannabis industry. This education can take many forms, such as social media posts, blogs, podcasts, and events.
VII. Medical Marijuana
The growth in customers interested in medical cannabis is also creating opportunities for brands. According to the same YouGov poll, 43% of those who have tried cannabis used it in the past year, and 72% used it in the past month. As the medical benefits of cannabis continue to be researched and documented, more people are turning to it as a natural alternative to traditional medicine.
Brands can use this growing interest in medical marijuana to develop products and marketing campaigns that cater specifically to this market. However, it is important to note that marketing and advertising regulations for medical cannabis are often more strict than those for recreational cannabis, so brands need to ensure they comply with these regulations.
VIII. Social Approach
Brands that address social issues and align with consumer values can build strong relationships with their customers. The cannabis industry is unique in that it has the potential to support many social causes, such as criminal justice reform, environmental sustainability, and diversity and inclusion.
By taking a stance on these issues and aligning with consumer values, brands can build a sense of community and brand loyalty. This approach can also help brands stand out in a crowded market where many products are similar.
IX. Creating Quality Content
Content marketing is a powerful cannabis marketing force. Brands can use various methods to distribute content, such as social media, email marketing, and blogs. Leveraging SEO, segmentation, and overall cannabis-focused marketing can help brands reach their target audience and increase their visibility.
Creating quality content that provides value to the customer is crucial in building trust and authority in the industry. Brands can use content to educate their customers about the benefits of their products and the latest trends in the industry.
X. Cannabis and Wellness
The focus on wellness has moved the cannabis industry to a billion-dollar market. More brands are turning to wellness messaging, informing and educating consumers about the benefits of incorporating cannabis into their fitness, self-improvement, and wellness regimens.
With the growth in the wellness industry, it’s no surprise that cannabis companies are capitalizing on this trend. Brands are creating products that are specifically marketed towards wellness, such as CBD-infused skincare products and tinctures for relaxation and stress relief.
XI. Data-Driven Marketing
Plenty of demographic and market data is available for cannabis marketers to use to their advantage. By diving into the data and analytics, companies can extract useful and actionable information that can help them better understand their customers and deliver products and marketing initiatives that will grow the company.
One example of a company that uses data-driven marketing to their advantage is Eaze, a cannabis delivery service. They leverage data to identify key trends and preferences among their customer base, allowing them to tailor their marketing efforts and improve their overall customer experience.
XII. Storytelling
Becoming an expert storyteller is essential to effectively market cannabis products and build real bonds with customers. Consumers are interested in the brand story and the real benefits of the product, and telling a compelling story can help to create a loyal customer base.
One brand that has successfully used storytelling to build a passionate following is the cannabis brand, Lowell Farms. They have created a brand story that emphasizes their commitment to sustainability and social responsibility, while also highlighting the quality and craftsmanship of their products.
XIII. Mobile Marketing
Mobile devices have become the primary tool for accessing the internet and consuming content. As a result, mobile marketing has become a crucial aspect of cannabis marketing. In 2023, cannabis companies will need to focus on optimizing their websites and content for mobile devices to reach their target audience effectively.
One important aspect of mobile marketing is ensuring that websites and pages are responsive and user-friendly, providing a fantastic user experience. This can include optimizing images and videos, simplifying page layouts, and minimizing load times.
Mobile marketing also includes utilizing mobile apps, SMS, and push notifications to communicate with customers and keep them engaged. Cannabis companies can leverage these tools to offer promotions, product updates, and exclusive deals to customers.
It’s essential to note that cannabis companies must comply with regulations on advertising and marketing cannabis products and services. For example, many social media platforms have strict policies against promoting cannabis-related content, making it crucial to develop alternative marketing strategies that comply with regulations.
Overall, cannabis companies that prioritize mobile marketing in 2023 will be better positioned to reach their target audience and stay ahead of the competition.
Final Opinion
As the cannabis industry continues to grow, companies must adapt to the changing landscape to effectively manage cannabis marketing. They must promote new products, target niche markets, and align with consumer values while addressing social issues.
Expanding knowledge about cannabis is also essential for eliminating prejudices and fostering education. Companies should aim to inform and educate consumers about the benefits of incorporating cannabis into their wellness and self-improvement regimens. Storytelling has become an essential part of marketing, and brands that address social issues can build brand loyalty and a sense of community.
Data-driven marketing is becoming more accessible, and companies can leverage demographic and market data to understand customers and deliver effective products and marketing initiatives. Mobile optimization is also crucial, as the majority of consumers access the internet through mobile devices.
Finally, it is important to keep an eye on cannabis industry marketing trends and comply with regulations on advertising and marketing cannabis products and services. By staying informed and following these guidelines, companies can succeed in this growing market.
Sources:
https://flowhub.com/cannabis-industry-statistics
https://herb.co/learn/cannabis-industry-trends-that-will-still-be-in-place-in-2023/
https://mjbizdaily.com/10-cannabis-industry-trends-to-watch-for-in-2023/
