27% gain every 20 days?
This is what Nick Shine does on average with his options buying. Instead of selling covered calls or spreads, he buys options. Most traders don’t even win 27% of their options buying. He wins 83%. This is how he does it.
For the first time in U.S. history, the number of people who consume marijuana daily or nearly daily exceeds the number of people who drink alcohol on an equal basis, according to a new study published in the journal Neurology. Association for Addiction Research.
This groundbreaking change will have major implications for the cannabis market, as detailed by several industry experts speaking at the fall conference. Benzinga Cannabis Capital Conference It will be held in Chicago this October.
The study highlights the dramatic increase in cannabis use over the past three decades: since 1992, daily cannabis consumption in the United States has soared nearly 15-fold.
By 2022, about 17.7 million people reported using marijuana daily or nearly daily, and 14.7 million reported using alcohol the same frequency. National Survey on Drug Use and HealthThe federally funded survey is considered a reliable source of self-reported drug use statistics nationwide.
Aaron Gray,Managing Director Alliance Global Partnershighlighted the importance of this trend among young adults.
“Our biggest takeaway is the shift to cannabis. [from alcohol] “For younger adults, spending is greater, suggesting that this trend will continue over the coming decades as young adults continue their traditional spending habits as they get older,” Gray said.
“As we’ve already seen in Canada, we believe large CPG operators in categories struggling to grow volume will turn to cannabis once federal approval is granted. As a result, operators will have the ability to succeed in the market and be well-positioned for strategic investment/acquisition from these large CPG companies, as well as institutional investors.”
Jesse RedmondHead of Cannabis Division Water Tower Researchnoted that the majority of cannabis sales are driven by a small number of consumers.
“The Pareto principle states that 80% of your results come from 20% of your actions. In the cannabis industry, we’ve found that 10% of consumers use 90% of cannabis, meaning it’s the daily consumer who drives revenue. Higher daily consumption should expand this ‘apex cannabis consumer’ segment, increasing revenue for cannabis companies. Companies need to design loyalty programs that reward frequent users.”
Jamie Pearson,president New Holland Groupshared her perspective on the impact.
“We will see more capital and M&A activity from the alcohol industry flowing into the industry to avoid losing market share, and we also expect to see more CPG companies seeking access to the industry,” Pearson said.
“What’s most important is to focus on profitable growth, not growth for growth’s sake. The more people use cannabis and become accustomed to having it in their neighborhoods, the less stigma there will be. As public knowledge and support increases, I expect to see legislative and reform efforts continue.”
Laurie ParfittFounder and CEO of LKP Impact Consultingbelieves that a surge in everyday cannabis use will drive demand for a wider variety of products.
“The increase in daily cannabis use is likely to impact the cannabis market. First and foremost, demand is expected to surge across various product categories, especially consumer goods such as edibles and e-cigarettes, which are popular for their ease of use and discreetness. Increased daily use is likely to translate into increased retail sales and increased profits for cannabis businesses.”
Joseph LustbergCEO Upwise Capital, He expects the rise in daily use to lead to looser regulations and more legalization efforts, and he stressed that product innovation and strong marketing strategies are needed to capitalize on this trend.
“To capitalize on this trend, companies need to focus on product innovation and quality. Creating unique, high-quality products that cater to different consumer tastes will help them differentiate their brands. Additionally, investing in strong marketing strategies and consumer education will be essential to attract and retain customers.”
Will BowdenFounder and CEO of Grasshopper Farmsaw this change as an opportunity to increase education and transparency in the industry.
“It’s an exciting time when demand is literally creating jobs and business opportunity. It’s also a great opportunity to more directly evaluate healthcare utilization and the amount of relief being provided. We need to help each other with business plans, actual standard operating procedures and market analysis. There is plenty of business out there for those who want to run a viable business.”
Dan AhrensPortfolio Manager Advisor Sharenoted that the increasing acceptance and use of cannabis reflects a broader cultural shift.
“I’m not surprised that cannabis use is on the rise, and I believe this trend will continue in the United States as more states allow regulated and safe access to legal cannabis. Approximately 75% of Americans live in a state where marijuana use is legal for recreational or medical purposes, and I see that number only growing. The more people learn about cannabis as a relatively safe alternative to alcohol and other substances, the more we expect to see the normalization of cannabis and increased use.”
As everyday cannabis consumption becomes more widespread, the industry must adapt to changes in consumer behavior and the regulatory environment to position itself for continued growth and acceptance. Benzinga Cannabis Capital Conference The Chicago operation will be crucial for the company managing this evolving market.
Cannabis regulatory changes seem just around the corner. Want to know what this means for the future of the industry? Hear directly from top executives, investors, and policymakers. 19th Annual Benzinga Cannabis Capital Conference, They’re coming to Chicago on October 8-9th, so grab your tickets now at this link before the prices go up.
Photo: Benzinga
27% gain every 20 days?
This is what Nick Shine does on average with his options buying. Instead of selling covered calls or spreads, he buys options. Most traders don’t even win 27% of their options buying. He wins 83%. This is how he does it.
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