Cannabis companies have a lot to celebrate after 4/20 2023. Across every industry product sector, consumers marked the holiday by breaking new sales records—more than $100 million in legal cannabis transactions in one day. According to the cannabis analytics firm Headset, sales hit $160K per minute during the holiday. Retailer Jane Technologies charted a big 9.7% increase year-over-year.
Clearly, 4/20 cannabis consumers came to party this year.
Data shows that retailers and dispensaries were primed to experience their best-ever holiday, thanks to savvy inventory planning, detailed sales strategies, pop-up events, and efficient, targeted marketing. Stock inventories rose 26% in preparation for 4/20. Some businesses capitalized on 4/20 buzz to launch new brands and products. Innovative marketing campaigns, including next-level cannabis packaging launches, attracted new customers while extending existing bases.
Notably, many followed the traditional retail approach of extending their holiday promotions prior to April 20 by a single day up to a full month to attract more sales. As a result, many cannabis industry leaders enthuse that 4/20 has become more of a “spring break” than a single-day event.
Analysts agree that the success of 4/20 says a lot about the industry’s increasing maturity and potential for future growth.
We have the receipts
Here’s a noteworthy metric: average discounting per transaction fell far below previous years, meaning bigger margins and better bottom lines. Green Market Report (April 25, 2023) cites these sales stats:
* The average order value on 4/20 was $59, an 11% decrease from last year.
* The average discount amount was $19, a 17% decrease from last year.
* The average cart size remained the same year over year at four items.
The most popular 4/20 categories?
- Flower: $10,346,361
- Vape: $6,623,246
- Edible: $3,128,225
- Extract: $2,028,396
- Pre roll: $1,873,570
In the lead-up to 4/20 2024, we’ll be watching to see if these trends hold.
Holiday preparation is everything
At AssurPack, planning for 4/20 begins a full year early. We carefully track cannabis sales data and use the information to help guide our product innovation choices and, more importantly, to support our partners by ramping up our inventory in advance of important sales holidays (and every day). Great packaging maximizes sales. So do comprehensive product and packaging supply chain strategies.
We anticipate that new records will be set next 4/20. Let’s start planning to rake in even more green.
Important reminder: Memorial Day, May 29th, is just around the corner. This is a great time to strategize and get your inventory in its prime selling position. What sells best during Memorial Day? Edibles, of course!