America has a well-being problem. Cannabis can help.

Cannabis isn’t about getting high, it’s about getting well. And in 2022, it’s clear that America has a well-being problem.

Macro forces - political, pandemic, social inequity and economic factors - increase our stress levels and the need to relax. A recent study from the American Psychological Association reports that 87% agree that American life “feels like there has been a constant stream of crises without a break over the last two years.”

People are searching for solutions for well-being – the “state of being comfortable, healthy or happy." They are turning to new products, services and experiences to find more effective and healthier alternative products, including cannabis. From meditation apps to “Puff and Paint” cannabis art classes, people are searching for newer and healthier ways to relax. These tumultuous times are fueling demand for products that drive the $1.5 Trillion Wellness industry. And it is also driving demand for cannabis – the fastest growing US industry projected to reach $27 Billion in 2022.

“Puff and Paint” Classes at Soul and Wellness – a medical cannabis service and wellness education business located in the Pilsen neighborhood of Chicago.  Customers bring their cannabis and pay a fee to paint with their neighbors.

Since 2016, Aclara Research has conducted over 50 studies of consumer wellness behaviors on the intersection of cannabis and need states.  Consistently, the main reasons for use across medical and recreational users are to relax, decrease anxiety and pain, and improve sleep.  Our recent study conducted with Ipsos — Cannabis, CBD and Wellness (click here for more information) — quantifies the top 5 reasons that people are using cannabis:

Source: Aclara and Ipsos Syndicated Study (2021), “Cannabis, CBD and Wellness” Respondents selected their top 2 reasons for using cannabis and CBD.

Our study of over 1000 users shows that the top need states are driven by well-being. Only 21% percent of respondents were using cannabis to get high.

Source: NielsenIQ – Thinking Beyond the Buzz Study (US) Q4 – 2020. | *NOTE: Legal cannabis refers to any marijuana or hemp-derived product that contains cannabinoids.

Cannabis and CBD serve multi-dimensional health and wellness needs.

The analysis shows that cannabis is multidimensional, solving multiple health and wellness needs. And every day, more people are choosing cannabis to do so. Nielsen iQ data shows that 31% of US households have purchased a legal cannabinoid product.

Consumers searching to relieve pain and improve sleep quality are more likely to buy cannabis or CBD – and that’s a big market. The American Sleep Apnea Association reports that 50-70 million adults have a sleep problem. Pain management impacts another 50 Million Americans. While these are not additive due to comorbidities, it’s clear that there are sizeable demand pockets that traditional CPG or Rx products aren’t solving well.

And it’s no surprise that hard seltzer buyers are in the top 3 buyer groups that have used legal cannabis. As 29% of alcohol drinkers report drinking less, and low and no alcohol sales hit $10 Billion in 2021, consumers are focusing on healthier behaviors — which means less alcohol. Our database of over 10,000 Cannabis Occasion Diaries also show that over 30% of consumers are drinking hard seltzer beverages – they use low alcohol products instead of alcohol or when using cannabis.

Retail and the Future

As cannabis store count increases, more consumers will buy cannabis. Today, there are more than 7000 cannabis dispensaries across the US. Fourteen states have legalized home delivery. With this level of accessibility and convenience, cannabis will be increasingly chosen to solve more consumer needs – from symptom management to social engagement. Once federally legal, it will compete directly with established CPG, OTC and prescription drug categories. Sixty-eight percent of people surveyed perceive cannabis and CBD as “healthier” and “more effective” to solve their needs.

It’s not about getting high, it’s about getting well.

Cannabis isn’t the only answer to the American problem of increased anxiety and stress, but it’s part of the solution. As the Biden administration directs the Department of Health and Human Services to “expeditiously review” how cannabis is scheduled under federal law, we have an opportunity to right the wrongs of racism codified into legislation – and to positively impact our crisis of physical and mental health.

Implications for CPG, OTC and Pharmaceutical Companies:

• There is clear evidence that Cannabis has already captured retail trips, category spending and usage occasions from massive, established categories like OTC medication, alcohol, supplements and prescription drugs. These industries will be even more vulnerable as cannabis becomes more broadly legal, eventually at the federal level

• CPG, OTC and Pharmaceutical companies must be cognizant of the current and future consumer “Jobs” for which they are competing with cannabis and CBD, along with where their products are advantaged or disadvantaged