$6.5 BILLION IN 2016. $7.8 BILLION by 2020. $20.2 billion by 2021. These mind-boggling figures reflect current revenue and projected revenue from sales of legal cannabis in North America. The exponential rate of growth and market possibilities are eye-opening, especially as more states turn to legalization and increasingly relaxed regulations. The moment is ripe for growth, and it’s a great time to be a dispensary- especially for those selling more than the actual cannabis.
Although incredibly profitable to sell plant-based products alone, an increasing number of dispensaries are beginning to recognize substantial profit potential in the accessories market. And as the industry matures, and competition heightens, they’re looking to set themselves apart from others in their category. By adding accessories, these smart businesses are giving their customers a better shopping experience. They’re providing easy access to the extras, which is helpful to both the seasoned and the new cannabis consumer. Offering the complete package of plant-based products and co-ordinating accessories makes customers happy and allows dispensaries to capture additional sales that would traditionally be lost to other stores.
Accessories provide dispensaries with an opportunity to attract new cus-tomers and increase current customer wallet-share. In fact, in a recent study published by BDS Analytics, year over year increases in dispensary ac-cessory sales in Oregon and Colorado included a 250% increase in grinder sales, a 130% increase in pipe sales, a 87% increase in vaporizer sales, a 75% increase in paper sales and a 50% increase in storage sales.
The aesthetic of the category is evolving, with a shift to more visually ap-pealing products. Sold alongside the cannabis, the allure of the sleek, fresh items draws patrons in and encourages seasoned ones to upgrade their gear. Dispensaries that stock a diverse collection of accessories are also encour-aging their clientele to experiment with new products. These explorations and impulse buys can easily turn into repeat purchases and steady streams of incremental income for the dispensary.
Although there is a varied assortment of products that coordinate well with cannabis usage, ranging from lifestyle items like candles and clothing, to more typical items used for smoking, profit-generating accessories that are best-suited for sales alongside cannabis include hand pipes, water pipes, grinders, papers, vaporizers and lighters.
As more and more states begin to lighten their regulations, the demand for cannabis-related products and services is expected to continue growing. And entire businesses can potentially be built from the lucrative accessories category alone. Dispensaries looking for a surefire path to growth and profit are smart to carry these products now, setting themselves apart from their competition with a synergistic offering of cannabis and coordinating accesso-ries, guaranteeing themselves a piece of that sweet multi-billion dollar pie.