LAS VEGAS — Deep Roots Harvest expects that in 2023 cannabis consumer habits will shift, as a more educated customer base places new focus on specialty products, trusted brands and increasingly savvy attention to strains, cannabinoids and terpenes. This is one of three trends that Deep Roots Harvest expects will define the Nevada cannabis industry in 2023:
Shifting consumption habits
As Nevada cannabis consumers become more educated and sophisticated, concerns about quality and loyalty to brands have grown. This trend will continue in 2023 with consumers becoming increasingly savvy about strains, cultivation practices and desired effects. Recognized brands viewed as possessing “staying power” will win the day over less-established companies. In addition, many consumers have begun to shift how they consume cannabis, experimenting with different form factors and sizing as well as more niche products aimed at specific conditions like sleep or anxiety.
“A lot of companies have relied on hype for so long that consumers are less trusting. They want a solid brand that they can get behind. We have been hearing an increase in consumers’ questions about products,” said Jon Marshall, COO of Deep Roots Harvest. “They ask more questions about how flower is grown and how products are made. They are definitely becoming more savvy and interested in the specifics of brands and different cannabinoids and terpenes. In addition, there is a growing segment of consumers that are making cannabis more of an occasional indulgence than a regular activity. We think next year is going to be very interesting in terms of interest from consumers on all of these fronts.”
Consumption lounges
Nevada’s Cannabis Compliance Board approved regulations governing consumption lounges last summer and accepted license applications in October. While there are no current consumption lounges open, the state announced in November the 40 recipients of the new lounge licenses – and the first lounges are expected to open in early 2023. The opening of these consumption lounges has the potential for immediate impact, particularly on the tourism centers of Las Vegas and Reno as they return to pre-pandemic tourism levels. A recipient of one of the new licenses, Deep Roots Harvest is in the process of identifying how to implement the new opportunity.
“We absolutely see the appeal for consumers, especially tourists, to have a quiet, relaxing space away from the hustle of the city to legally enjoy cannabis,” Marshall said. “Lounges can also provide an opportunity to try different products in a controlled environment. Overall, we think the concept of a consumption lounge is still evolving and we will learn from consumers over time what works and what does not work.”
Tax rates and looming recession favor black market sales
High rates of taxation and an anticipated economic recession will both be contributing factors benefiting Nevada’s illicit cannabis market, which continues to lure consumers. The illicit market today offers products that mimic the variety available at licensed cannabis retailers, and some products often even feature test results and other information on labels. Shrinking disposable incomes will push many consumers to these unsafe products.
“Economic challenges always favor the illicit market, which only illustrates why tax reform is so necessary,” Marshall said. “Next year, the black market will be our biggest competitor particularly if economic conditions worsen as many expect. Undoubtedly, this will contribute to the price compression we have seen, as operators in the regulated market compete to attract consumers. We expect that loyalty and VIP programs will become more popular and critical to building a loyal consumer base, as well as to help keep consumers from the illicit market.”
About Deep Roots Harvest
With decades of experience from a team with a true passion for the plant, Deep Roots Harvest has been cultivating, processing, manufacturing and distributing high-quality cannabis products in Nevada since 2015. Utilizing one of the largest cultivation facilities in the nation, premium extraction processes and a focus on natural and sustainable ingredients, Deep Roots creates premium strains and products distributed at a wide variety of retailers, including a growing list of Deep Roots Harvest locations across Nevada. For more information, visit DeepRootsHarvest.com. Continue the conversation on Facebook, Twitter, Instagram and YouTube.
