4/20 sees robust sales despite market downturn
Consumers may be pinching their pennies more and more these days, but that wasn’t the case on 4/20. Despite concerns over inflation and fears of a recession, the biggest day of the year for cannabis enthusiasts saw record sales nationwide, according to an analysis from Green Market Report.
Green Market Report looked at numbers from cannabis data and analytics firm Headset, as well as point-of-sale providers Flowhub and Jane Technologies. The figures showed that while consumers are exercising restraint overall, they aren’t afraid to celebrate.
“This is Black Friday for the industry; it’s our Super Bowl,” Socrates Rosenfeld, co-founder and CEO of Jane Technologies, told GreenState.
According to Headset, dispensaries achieved $100 million in sales overall. At one point, retailers were bringing in $160k per minute. The company released a video heat map illustrating the nation’s sales throughout the day.
Flowhub’s stats revealed that this year’s high holiday was the biggest ever for their retail clients. The average transaction count for dispensaries was up 5% compared to 4/20 last year. However, consumers spent 11 percent less per transaction overall; the average order was around $59. The numbers are indicative of falling cannabis prices as well as a desire by consumers to be more careful concerning spending.
Jane Technologies saw a 9.7% increase in 4/20 sales compared to 2022. Their dispensary partners achieved $26 million in sales, with flower as the top product category, followed by vapes, edibles, extracts, and pre-rolls.
Rosenfeld felt the results of 4/20 matched his company’s predictions, considering the current state of the market.
“It was pretty much in line with our expectations, given the macroeconomic environment, where consumers are really looking to be efficient with their spend, plus the fact that we are experiencing price compression across the board in this industry,” he explained.
“The fact that there are still more consumers entering the space and still shopping in the legal industry only serves to confirm that cannabis is here to stay, despite the fact that consumers are probably not spending money in other retail verticals.”
Rosenfeld added that he expects the upward trajectory to continue, as many consumers consider cannabis products to be a “need to have” as opposed to a discretionary spend.
4/20 is a day for celebration but also a day for deals. As savvy shoppers seek discounts on their favorite products, the “Black Friday of cannabis” is likely here to stay.