Cannabis sales predicted to reach $370,000,000 as consumers prepare for 4/20

Business intelligence from Akerna (Nasdaq: KERN), an enterprise software, leading compliance technology provider, and developer of the cannabis industry’s first seed-to-sale enterprise resource planning (ERP) software technology (MJ Platform®), predicts that Tuesday, April 20th, a widely-popular yet unofficial “holiday” celebrating cannabis consumption, will gross $95,000,000 in legal cannabis retail sales nationally, with the following predictions for the day:

  • Top product: Flower will be the most purchased product on 4/20, claiming 49% of all legal sales, up 4% from the 2021 daily average. 
  • Order total: The average order total will be up about $10, with the average spend per customer coming in at $105.00, compared to the 2021 average of $93.48. 
  • Basket size: Customers will buy an average of 3.69 products, up 30% from the 2021 average basket size, 2.83 products. 

“Elevated sales mean traffic will be at a high, making it critical for retailers to prepare their inventory, staff, and space for these upticks,” said James Ahrendt, Business Intelligence Architect at Akerna. “To help with preparations, we have created a guide for dispensaries on 4/20, complete with recommendations on how to create the most seamless and enjoyable customer experience.”  

With 4/20 landing on a Tuesday this year, Akerna predictive data is showing that consumers planning to celebrate will shop ahead of the date, with the weekend ahead of 4/20 being the most significant weekend sales of the year and the 5-day period (4/16-4/20) sales totals exceeding $370,000,000 nationally, with the following predicted breakdown per day: 

  • Friday, 4/16: There will be a 50% growth in daily average sales, the second largest sales day for the period with a predicted total industry sales figure of $85,000,000. Fridays are typically the highest traffic days for cannabis retailers.  
  • Saturday, 4/17: This will be another busy sales day in preparation for the holiday, with predicted sales reaching $78,000,000. 
  • Sunday, 4/18: Anticipated to be the slowest day, but still elevated for Sundays, with a predicted spend of $50,000,000. Historically, Sundays are the lowest cannabis sales days. 
  • Monday, 4/19: Sales will pick back up from the slower Sunday, totaling $65,000,000.

Other predictions for the “holiday” period (4/16 – 4/20):

  • Category sales: 
    • Flower – 49% 
    • Cartridge/Pens – 31% 
    • Concentrates – 11% 
    • Infused Edibles – 8% 
    • Other – 1%
  • Sales percentage by Demographics: 
    • Gender 
      • 62% male 
      • 38% female sales 
    • Age 
      • Under 30 – 29% 
      • 30-40 –31% 
      • 40-50 – 20% 
      • 50-60 –12% 
      • Over 60 – 8%

About MJ Freeway 

MJ Freeway is more than software as a service. Its flagship solution, MJ Platform, includes Platform Insights. Now operators, investors, and regulators can access the industry’s largest and most statistically relevant database to drive data-driven business decisions. 

Platform Insights provides: 

  • The greatest statistical relevance across countries 
  • Normalized data (not farmed from various disparate POS platforms) 
  • Full cannabis supply chain data 
  • Business insights founded in category management methodology 

Platform Insights can eliminate the guesswork and provide answers to questions like: 

  • What is the gross margin return on inventory? 
  • What SKUs should be carried? 
  • How do basket adjacencies influence discounting and retention strategies? 
  • What does a medical market look like a year or five years after decriminalizing cannabis? 

Click here for more information about MJ Platform. 

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