Cannabis Data 101: How to Use Data to Weed Out Competition and Cultivate Growth
by Brenna Dilger, on April 20, 2022
It’s no secret that the cannabis industry has experienced booming growth in a short period of time due to recent legalization laws and peaking recreational sales. Currently, cannabis is legal for recreational use in 19 states and for medical use in 36 states, and further legalization advancements are being made every year. The legal cannabis industry generated $25 billion in sales just last year and is expected to hit a sky-high record of $65 billion in 2030.
Big data is a huge component in the rising trajectory of the cannabis industry. Due to the regulatory status of cannabis, companies are required to collect and report data on everything from cultivation to customer sales. Cannabis industry leaders are also using a range of external data to create better products, marketing campaigns, and business plans. This means that data on cannabis cultivation and consumption is being generated on an unprecedented scale, and data available to cannabis companies is bringing a whole new level of insight and improvement to the market.
Data is crucial for cannabis regulation and safety
Data is an important factor when it comes to the safety and quality of cannabis products. Since cannabis is a newly regulated industry, concern has been raised around companies distributing counterfeit products, incorrectly dosing, or not following regulations consistent with other organic industries.
As the cannabis industry expands, companies are generating an immense amount of data on the entire seed-to-sale process. In fact, regulatory officials strictly mandate that data be provided on cannabis cultivation, shipping, productization, and sales to ensure transparency and safety.
As all of this data is generated, it contributes to the evolution of cannabis production and safety. The more data companies generate and analyze for internal and external use, the more inefficiencies are illuminated, and the more operations can be refined to a safer and more efficient process.
Data improves cannabis products
Data has been greatly improving production and cultivation in the cannabis industry by helping companies refine processes related to plant health, harvest, and processing. For instance, measuring factors like grow-room temperature, light exposure, and water and soil composition could help produce better quality plants and improve the speed and consistency of growth. It’s even possible to use data to control factors like CBD levels, potency, aroma, and appearance.
Growers and distributors can change the genetic makeup of their plants to consistently produce the most popular strains and can also identify undesirable characteristics associated with unpopular strains to make amendments. By consistently collecting and evaluating data, cannabis companies can adopt data-driven strategies that produce the best plants, lower energy consumption, reduce waste, and yield a higher ROI.
Data helps cannabis companies understand their audience
Cannabis consumers as one collective group can be difficult to make assumptions about since they fit into many separate demographics. Luckily, data being generated by each cannabis consumer, from location to gender to age to purchase history, can help brands understand each demographic’s buying habits and preferences.
Trends in customer preferences and consumption can help brands make better decisions when it comes to creating new products, amending existing products, and marketing and advertising their products. What brands and product designs are appealing to customers, which dispensaries are performing best, and what store layouts and store management techniques are most effective? Data can answer those questions to create more compelling branding and messaging.
Cannabis companies can also use their demographic and sales data to determine which products will perform best, where they might perform best, and when buyers are more likely to purchase. Tracking trends and making good use of the right data will lead to targeting the right markets, increasing sales, and boosting brand recognition.
Data helps other industries understand the cannabis consumer
Cannabis industries aren’t the only industries that can make use of this kind of information. Several other industries can benefit from understanding a cannabis audience. Medical industries might make use of data generated from medical cannabis consumers to create better medicinal products.
Entertainment and media industries might make use of cannabis user data in order to produce better content or experiences for a cannabis consumer demographic. Food and beverage companies might use cannabis consumer data in order to create and market their products and services to cannabis users.
Understanding a cannabis audience’s needs and wants can help several industries create better products, customer experiences, and marketing messaging. They are an audience segment that industries should be tapping into as they are contributing to a rapidly booming industry and more data is being generated than ever before on their preferences and habits.
Buying and selling data related to the cannabis industry
Buying and evaluating outside data sources is how cannabis industries are able to gain a full picture of their consumers and industry in order to remain competitive. Data, whether it is related to the cannabis industry or not, is meant to be used to make improvements and advancements. Acquiring new external data can help companies make important discoveries and better decisions.
If your organization has valuable data that could contribute to the growing cannabis industry, you could be generating an entirely new stream of revenue for your company by selling that data to interested buyers. Narrative’s Data Shops enables businesses to quickly and easily launch an ecommerce data business without spending significant time and resources. MediaJel’s ecommerce data store, created with Data Shops, is one example of a data shop that has extensive cannabis consumer data available for purchase.
If you’re looking to acquire data to help grow your cannabis company or target cannabis consumers, Narrative’s Buyer Studio gives you advanced filtering options that make it easy to find and purchase the exact data you’re looking for. You can start getting the precise data you need with just a few clicks.
Need cannabis consumer data today? Have data that cannabis companies are looking to buy? Our experts are here to help you buy or sell!