Market Research Wrap: Cannabis to disrupt, transform consumer industry
by MarkLives (@marklives) Our weekly wrap of the latest market and consumer research:
- Cannabis and the FMCG market
- Automotive touchpoints
Consumer industry disruption
Cannabis is poised to disrupt virtually every consumer industry: while the total global market for cannabis, both legal and illegal, stands at US$150bn currently, Euromonitor International’s latest report, “Here Comes Cannabis: How Legalisation Will Disrupt Global Industries”, expects the legal market to grow to 77% of total sales, at US$166bn by 2025. [Cheryl Hunter]
What industries will be most impacted by this development and how will it transform the future of consumer markets?
Alcoholic drinks is by far the most-embedded industry in the cannabis sector, with at least three corporate players having a stake in cannabis producers. The industry is already headed in a low/non-alcohol direction and so on the horizon is a future where THC replaces ABV in alcoholic beverages with an intoxicating buzz. According to Spiros Malandrakis, Euromonitor alcoholic drinks industry manager, cannabis will ultimately culminate in a global paradigm shift that will radically disrupt traditional industries like alcoholic drinks.
Cannabis legalisation is also expected to transform the tobacco industry, which has seen cigarette volumes and smoking populations plummet across developed markets. In the future, tobacco manufacturers may be either cannabis brand owners or producers of the gadgetry for its consumption.
Hemp seed oil beauty and personal care products have been on the market for decades. However, the new ingredient in beauty, CBD, has replaced hemp references, promoting its anti-oxidising, oil-balancing and anti-inflammatory properties.
Euromonitor expects skincare to be the main driver of cannabis beauty growth. Specifically, brands operating in the therapeutic and dermocosmetics space will tie in current holistic and health-aligned beauty trends while THC beauty products align with trends in neurocosmetics.
Euromonitor also expects global sales of CDD packaged foods to double over the next two years
By 2030, the cannabis market will be transformed by household brand names. The growth of THC-infused products will become more routine in consumers’ daily lives, moving beyond medical applications. Those companies which have reacted early will have their own everyday cannabis brands.
- Download the full report by registering at Euromonitor.
Print is efficient
In the latest “Touchpoints” research commissioned by the Publisher Research Council (PRC), print advertising placed second in the top 10 in the automotive category, clipped only by TV, in the ‘paid for’ touchpoints. The research was conducted using Kantar TNS Germany’s global touchpoints model which measures a total of 23 consumer touchpoints. [Cheryl Hunter]
Says Pete Langschmidt, consultant to the PRC, “It is the responsibility of the PRC, through numerous investigations and research, to provide irrefutable proof that reading, whether online or on paper, delivers the highest brand cognition and recall. This we have consistently proved over the past two years, that the written word delivers the highest Return on Investment (ROI), whether used independently or in conjunction with TV.”
Relative to other media or ‘paid for’ touchpoints, print is efficient and delivers five times more impact for its investment in comparison to radio, for example, providing a 1:1 ratio. Even though print only has a 3.8% share of advertising spend, the platform delivers a massive 19.5% share of impact, according to the PRC.
“In almost every instance, the television and print combination provides a better impact than a television/radio combination,” says Schmidt.
- For more info and to view/download the Kantar TNS presentation, go to PRC.
This weekly “Market Research Wrap” column offers an overview and critique of the latest market and industry research.
Cheryl Hunter (@cherylhunter) has written for the South African media, marketing and advertising industries for more than 15 years. A former editor of M&M in Independent Newspapers and contributor to Bizcommunity, AdFocus, AdReview and the Ad Annual, she has also produced for various television networks and currently consults on communication strategy and media liaison.
— One subscription form, three newsletters: sign up now for the MarkLives newsletter, including Ramify headlines; The Interlocker, our new monthly comms-focused mailer; and Brands & Branding, launching soon!