12% of current non-consumers are expected to
enter the cannabis market
- Nearly three-quarters of current consumers are not loyal to a
particular product or brand
- One-third of non-consumers say they don't know enough about
cannabis to consume it
- Anticipated new consumers are most interested in baked goods,
confectionery products
TORONTO,
Aug. 15, 2019 /CNW/ - 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.
"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
additive products.
"Current non-consumers need more information before they feel
comfortable trying cannabis products," says Chadha. "Deciphering
through online information for what's credible can be a challenge.
Companies will need to determine the best way of building awareness
and educating targeted consumer segments as one way to help inform
the purchasing decision and build brand loyalty."
Olaru adds: "Budtenders play a pivotal role in educating
consumers at the point of purchase. Their recommendations are
heavily influenced by word of mouth and online product reviews so
engaging the budtender community will be a critical differentiator
for cannabis brands."
Access the full EY Canada and Lift & Co. report As 2.0
opportunities emerge, can you still compete with 1.0
strategies? for insights and perspectives for licence
holders and retailers to challenge the way they currently integrate
consumer data into their strategies.
About EY
EY is a global leader in assurance, tax, transaction and
advisory services. The insights and quality services we deliver
help build trust and confidence in the capital markets and in
economies the world over. We develop outstanding leaders who team
to deliver on our promises to all of our stakeholders. In so doing,
we play a critical role in building a better working world for our
people, for our clients and for our communities.
For more information, please visit ey.com/ca. Follow us on
Twitter @EYCanada.
EY refers to the global organization, and may refer to one or
more, of the member firms of Ernst & Young Global Limited, each
of which is a separate legal entity. Ernst & Young Global
Limited, a UK company limited by guarantee, does not provide
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under data protection legislation are available via ey.com/privacy.
For more information about our organization, please visit
ey.com.
About Lift & Co.
Lift & Co. (TSXV: LIFT) (OTCQB: LFCOF) is a publicly traded
technology company modernizing the cannabis industry.
Forward-looking statements
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accuracy of this release.
Although the Company (Lift & Co. Corp) has attempted to
identify important factors that could cause actual results,
performance or achievements to differ materially from those
contained in the forward-looking statements, there can be other
factors that cause results, performance or achievements not to be
as anticipated, estimated or intended.
There can be no assurance that such forward-looking statements
will prove to be accurate or that management's expectations or
estimates of future developments, circumstances or results will
materialize. Accordingly, readers should not place undue reliance
on forward-looking statements. The forward-looking statements in
this news release are made as of the date of this release. The
Company disclaims any intention or obligation to update or revise
such information, except as required by applicable law, and the
Company does not assume any liability for disclosure relating to
any other company mentioned herein.
SOURCE EY (Ernst & Young)