Cannabis, in all its forms, is openly available everywhere in South Africa, despite the complicated regulatory environment and the fact that trading is prohibited.
What has been surprising is not that over 6 000 outlets have sprung up illegally, but the social kickback against this has been relatively muted.
Where is the Line Between Health and Medical?
One reason for the mainstreaming is the blurring of the lines between ‘medical’ and ‘recreational’ cannabis, which has slotted neatly into the broader consumer trends of heath, wellness and beauty.
The global wellness market is taking off and consumers are increasingly turning to nature to find ways of maintaining balance to cope with stressful lifestyles. Cannabis in South Africa has become part of this trend, which and its ubiquity and health and wellness benefits are rapidly breaking down old stigmas.
South Africa and cannabis have an intertwined history that goes back hundreds of years. The plant’s benefits have long been part of our ‘indigenous’ knowledge systems’. Now the country is experiencing an extraordinary interface between ancient knowledge, 21st century technology and modern consumer power and cannabis finds itself central to this node.
Cannabis, emerging from the underground onto every street corner in South Africa, is no longer the taboo subject it once was. Aided by widespread police tolerance (or extortion), towards the retail ‘Grey Zone’, cannabis in all its forms is now a product available to mainstream consumers.
And it must be pointed out, that where cannabis is connected to crime, this is the government’s own doing, having not had the will or capacity to enact the policies it has promised to put in place.
Consumers No Longer Afraid of the Law and Understand the Plant’s Benefits
Nonetheless, there appears to be an unofficial SAPS policy not to target the cannabis consumers who are no longer in fear of the law in openly buying cannabis and related products. Many of these related products are to do with health and wellness and are finding appeal amongst Millennials and Gen Z’ers who have the spend.
Those consumers are interested in cannabis not because they necessarily want to get stoned but because of the plant’s proven benefits in combating pain and inflammation, stress and anxiety, aiding sleep as well as treating a variety of specific medical conditions like epilepsy. To be clear, anecdotal evidence would suggest that well over 80% of cannabis transactions in South Africa’s ‘Grey Zone’ would be classified in regulatory terms as non-medical.
However, the whole concept of ‘medical cannabis’ is a grey area in itself . The plant’s full spectrum applications don’t fit neatly into SAHPRA’s restrictions. Goodleaf exited the CBD market in SA three years ago because the efficacy of its products were undermined by SAHPRA dosage limits.
SAHPRA is caught up in the confusion of enforcing regulations that are essentially meaningless and unenforceable.
For instance, the regulator lists ‘social anxiety’ as one of the 10 medical conditions that cannabis may be prescribed for under Section 21 of the Medicines Act. Most consumers are not going to go to the expense of getting a doctor’s prescription to calm the nerves if there is a perfectly good choice of pre-rolls in one’s neighbourhood store. You’ll probably get better advice from your local budtender as to what’s available for your requirements from the hundreds of strains, edibles, beverages, tinctures.
The point is that consumers are increasingly self-medicating – not just with cannabis but with other nature-based treatments that address life’s stresses. The destigmatization of cannabis is also gaining momentum in the slipstream of destigmatization of mental health issues and ways of treating them.
Shopping Centre Research Highlights Growing Wellness Trend
A fascinating report was done two years ago by the South African Council of Shopping Centres (SACSC), which resonates loudly in the current market. The Association highlighted the fact that shopping centre owners should be aware of the broader trends shaping the consume market as it could have a bearing on tenant selection.
It reported that the 2024 global wellness market was valued at R80 trillion and accounted for 5,3% of the world’s economic output, and that South African landlords should sit up and take note. Although comparable SA figures are not freely available, the report says this trend is gathering momentum “as consumers increasingly focus on personal well-being and self-care, and actively seek products and services that support their journey toward a healthier lifestyle GDP”.
Cannabis is Sailing into the Mainstream in the Slipsteam of these 3 Factors Behind the Consumer Wellness Trend
Highlights from the Association of Shopping Centres Report ‘Retail Trends 2024: South Africa’s health and wellness market is alive and well’
1. The importance of mental health and well-being:
Mental health, for too long a taboo subject, is finally getting the attention it warrants. Athletes have become increasingly vocal about their mental health, companies are offering counselling services and fostering supportive work environments, and work-life integration – which goes way beyond work-life balance – is the new buzz phrase.
This increasing awareness of the importance of mental health has led to an increase in consumers seeking out products and practices that promote mental well-being, such as CBD-infused products that can assist with issues ranging from anxiety and insomnia to pain and stress, and products and activities that promote relaxation and stress relief.
Retailers and brands can tap into this trend to boost engagement and add value by hosting enlightening wellness talks and workshops or introducing activities such as in-store yoga classes.
2. Surge in sustainable and ethical consumerism
With the growing concern over the environmental and social impact of consumerism, shoppers are not only seeking healthier alternatives but also products that align with their ethical beliefs and have a lower environmental impact.
A study carried out among South African consumers by consumer insights agency KLA found that 42.8% and 41.8% of respondents chose to follow a vegan and vegetarian lifestyle respectively, due to their ethical and sustainability benefits. Interestingly, this is being driven largely by Gen Z and Gen Alpha, who have wellness ‘inbred’ to a certain extent, thanks to social media and their parents, who are generally more wellness-oriented than previous generations.
Businesses have started taking note and are reducing carbon footprints, decreasing packaging waste, and sourcing ingredients responsibly, offering everything from organic and fair-trade options to free-range, pasture-reared, or plant-based.
3. The continuing rise of organic products and plant-based alternatives
A recent Deloitte study found that a substantial 84% of global consumers emphasise health as a key factor in their food choices, and one of the biggest trends is the increasing demand for natural and organic products.
Consumers are becoming more aware of the potential harmful effects of chemicals and additives in their products and are seeking out natural alternatives: a trend that is not limited to food and beverages but also extends to personal care and household products.
Another trend that is gaining traction in the health and wellness retail market is the rise of plant-based alternatives. According to recent market research, the plant-based meat market in South Africa is expected to experience double-digit growth, mirroring global projections, and is anticipated to surpass US$13 billion (R248 billion) by the end of 2026.
This shift is substantiated by the KLA study, which indicates that 49.9% of respondents view a meatless diet as a healthier option. The same study found that 61.7% seek healthier versions of favourite foods when shopping, indicating a potential market for businesses offering healthier alternatives.
In response, notable industry players such as McDonald’s and Burger King are adapting their menus to meet the growing demand, while retailers like Woolworths and Checkers are expanding their vegan product offerings.
Cannabis Entrepreneurs Read SACSC’s Conclusion Below
It’s clear that the health and wellness retail market in South Africa is thriving, and with the right strategies and practices, businesses can tap into this growing market and meet the evolving needs of consumers.
From sustainable packaging and cruelty-free certifications to stress-relieving products and mindful experiences, brands are striving to align with consumer values.
These brands will undoubtedly gain a competitive edge in the market, but the focus needs to extend beyond simply adding new product lines to infuse all customer touchpoints including personalisation, experiences, innovation, loyalty programmes, advice and more.
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