The homegrow market is likely to grow exponentially and legal retailers will need to have this in mind as they make their sales projections based on the estimated size of the consumer market.
By Lydia Kariuki
New Frontier Data (NFD) has just released an extensive report an extensive report on the dynamics of cannabis homegrow in the US, including current state of affairs and future projections. The homegrow market is made up of those who cultivate cannabis plants at home for their own needs and/or the needs of consumers in their circle. Not much is known about this group in terms of who they are, what motivates them, how they do it, or their outcomes.
NFD conducted a survey involving 4,682 cannabis consumers and 1,250 non-cannabis consumers. This report which was titled “The U.S. Cannabis Homegrow Market: Motivations, Processes, and Outcomes” has made several revelations that can serve as pointers for the cannabis industry:
Here are 7 interesting findings that can be gleaned from the report: What’s the anticipated growth trajectory of the homegrow spending on setting up the cultivation site and purchasing inputs? Estimated spending for site set-up and cultivation inputs is expected to increase by 38% over the next decade: from $2.7 billion to over $3.7 billion. Consumers are expected to spend close to $30 billion on homegrow supplies during this period. How much cannabis are homegrowers likely to produce in the next decade? Conservatively, homegrowers are likely to produce about 11 million pounds of dried cannabis flower in 2022 and15 million pounds by 2030, annual production. What will be the likely value in dollars of cannabis produced by homegrowers in 2022? Placing the market value of a pound of dried cannabis at $1,250 U.S. homegrowers will generate cannabis worth $14 by the close of the year. Why do homegrowers consume cannabis? Homegrowers consume cannabis for reasons that are similar to those of the average consumer. However, a higher proportion consume for overall wellness. Do homegrowers consume cannabis more frequently than non-growers? Yes, while 66% of homegrowers consume cannabis daily, only 40% of non-growers consume it daily.
Most (49%) learned to grow cannabis from online sources and from their social circle (47%). Very few learned how to cultivate cannabis from agricultural or academic avenues. Which are the common challenges that are experienced by homegrowers?Pest, fungus, and diseaseProducing quality flowerCreating the ideal grow environmentProper plant maintenance pre-harvestProper preparation post-harvestOdor challengesTheftExcessive costs With prospects of federal reforms on the horizon, this information comes in very handy. The homegrow market is likely to grow exponentially and legal retailers will need to have this in mind as they make their sales projections based on the estimated size of the consumer market.
This article originally appeared on MyCannabis.com and has been reposted with permission.
The Fresh Toast is a daily lifestyle platform with a side of cannabis. For more information, visit www.thefreshtoast.com.