Akerna Flash Report: Data shows cannabis consumers are spending 25% more amid the Covid-19 pandemic

Rhea-AI Summary

In a recent report, Akerna (Nasdaq: KERN) reveals that due to the impact of the Covid-19 pandemic, cannabis consumers are spending significantly more. Average recreational purchases rose to $60 from $48, while medical purchases increased to $123 from $100. Additionally, the number of products purchased per visit has grown, with recreational customers averaging 2.6 items and medical customers 3.02. This trend highlights a booming market for cannabis despite economic challenges, urging businesses to adapt their marketing strategies.

Positive

• Average recreational purchase increased from $48 to $60.
• Medical cannabis purchase grew from $100 to $123.
• Increase in average basket size indicates strong consumer demand.

Negative

• None.

DENVER, March 4, 2021 /PRNewswire/ -- Business intelligence from Akerna (Nasdaq: KERN), an enterprise software, leading compliance technology provider, and developer of the cannabis industry's first seed-to-sale enterprise resource planning (ERP) software technology (MJ Platform®), shows that one year since the Covid-19 pandemic has altered daily lives of North Americans, cannabis shoppers and patients are spending about 25-30% more per purchase and are increasingly purchasing more volume of products per visit. 

Over the past year (2020-2021), the average recreational cannabis purchase was $60 – climbing up from $48 in the previous year (2019-2020), with consumers' basket size growing from an average of 2.25 products to 2.6. For medical purchasing, the average sale size is up to $123 per purchase, up from $100 in the previous year, and basket volume grew from 2.9 items to 3.02. 

"This past year was a booming one for cannabis, even amid the economic crisis caused by the Covid-19 pandemic. The biggest change we see in our data is that patients are buying more products per visit, and it's important for cannabis businesses to take these changes into mind when marketing their products," said James Ahrendt, Business Intelligence Architect at Akerna. "With flower continuing to be the go-to product, brands should focus on differentiating their flower from the competition as well as education and benefits around other product categories."

Additional Insights 

Cannabis consumer shopping during the Covid-19 pandemic (2/1/2020 - 1/31/2021):

Average Order Sale (ticket):

• Male (Rec) – $59.02
• Male (Med) – $121.06
• Female (Rec) – $64.50
• Female (Med) – $125.22

Average basket size:

• Male (Rec) – 2.48 items
• Male (Med) – 2.93 items
• Female (Rec) – 2.76 items
• Female (Med) – 3.10 items

Gender Sales Market Share

• Rec – Male 67% / Female 33%
• Med – Male 61% / Female 39%

Age Group Sales Market Share:

• Under 30 - 27%
• 30 – 40 – 29%
• 40 – 50 – 19%
• 50 – 60 – 13%
• 60+ - 12%

Category Sales Market Share:

• Flower – 43%
• Cartridges / Pens – 35%
• Infused Edible – 8%
• Concentrate – 12%
• Non-Medicated – 1%
• Infused Non-edible – 1%

About MJ Freeway

MJ Freeway is more than software as a service. Its flagship solution, MJ Platform, includes Platform Insights. Now operators, investors, and regulators can access the industry's largest and most statistically relevant database to drive data-driven business decisions.

Platform Insights provides:

• The greatest statistical relevance across countries
• Normalized data (not farmed from various disparate POS platforms)
• Full cannabis supply chain data
• Business insights founded in category management methodology

Platform Insights can eliminate the guesswork and provide answers to questions like:

• What is the gross margin return on inventory?
• What SKUs should be carried?
• How do basket adjacencies influence discounting and retention strategies?
• What does a medical market look like a year or five years after decriminalizing cannabis?

Click here for more information about MJ Platform.

About Akerna:

Akerna (Nasdaq: KERN) is an enterprise software company focused on compliantly serving the cannabis, hemp, and CBD industry. First launched in 2010, Akerna has tracked more than $20 billion in cannabis sales to date and is the first cannabis software company listed on Nasdaq. The company's cornerstone technology, MJ Platform, the world's leading infrastructure as a service platform, powers retailers, manufacturers, brands, distributors, and cultivators.

For more information, visit https://www.akerna.com/.

About the Akerna Flash Report:

Flash Report is a look at buying trends in the cannabis market as captured by Akerna's MJ Freeway subsidiary.

MJ Freeway provides operators with MJ Platform, the industry-leading solution for regulatory compliance technology, from seed-to-sale-to-self. Some instances of the flash report may include business intelligence derived from Akerna's family of companies, including Ample Organics, Leaf Data Systems, solo sciences, and Trellis.

Data is derived from MJ Platform, the leading provider of cannabis compliance software for the marijuana industry. Sales projections are based on market adjustment calculations and represent the entire US market as an aggregate.

Reporting Data is obtained from operators using Akerna's MJ Platform solutions. Akerna has one of the largest seed-to-sale footprints in the cannabis industry, operating in 15 countries and 23 U.S. states, including Pennsylvania, Oklahoma, Puerto Rico, Arizona, California, Utah, Michigan, Colorado, Montana, Nevada, Maine, Vermont, New Mexico, Missouri, Texas, Ohio, Maryland, Washington D.C., Kansas, Arkansas, New York.

Increases are relative to the prior period. Additional business intelligence data sources may include proprietary tools used by Akerna's family of companies.

Forward-Looking Statements:

Certain statements made in this release are "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such terms or expressions) are intended to identify forward-looking statements. Such forward-looking statements include but are not limited to statements regarding the ability of the MJ Platform team to help operators make decisions through analytics and reporting. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of significant known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside Akerna's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others that may affect actual results or outcomes, include (i) Akerna's ability to maintain relationships with customers and suppliers and retain its management and key employees, (ii) changes in applicable laws or regulations, (iii) changes in the market place due to the coronavirus pandemic or other market factors, (iv) and other risks and uncertainties disclosed from time to time in Akerna's filings with the U.S. Securities and Exchange Commission, including those under "Risk Factors" therein. You are cautioned not to place undue reliance on forward-looking statements. All information herein speaks only as of the date hereof, in the case of information about Akerna, or the date of such information, in the case of information from persons other than Akerna. Akerna undertakes no duty to update or revise the information contained herein. Forecasts and estimates regarding Akerna's industry and end markets are based on sources believed to be reliable; however, there can be no assurance these forecasts and estimates will prove accurate in whole or in part.

 

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SOURCE Akerna

FAQ

What did Akerna report about cannabis consumer spending?

Akerna reported that cannabis consumers are spending 25-30% more amid the Covid-19 pandemic.

What is the average recreational cannabis purchase reported by Akerna?

The average recreational cannabis purchase is now $60, up from $48.

What was the average medical cannabis purchase according to Akerna?

The average medical cannabis purchase has risen to $123 from $100.

How many products do consumers buy on average per visit according to Akerna's report?

Recreational consumers buy an average of 2.6 products, while medical consumers buy 3.02 products.

Is Akerna's stock symbol KERN seeing positive trends?

Yes, Akerna's stock symbol KERN is associated with reports of increased consumer spending in the cannabis market.