The cannabis industry in the United States is undergoing significant shifts as the public’s acceptance of cannabis use grows, and the legal landscape continues to change.
A detailed analysis by New Frontier Data reveals the complexity and potential of this evolving market, with valuable insights for policymakers, market participants, and investors.
A Diverse Demographic
One of the most striking features of the cannabis market is the diversity of the consumer base.
With cannabis users spread across various age groups, genders, economic brackets, and political affiliations, the industry appeals to a broad demographic spectrum with a multitude of reasons for use.
Product Availability and Variety
Interestingly, access to forms of cannabis other than flower and edibles remains limited for many consumers.
Despite the broad legalisation in adult-use states in the US, regulators and existing operators still need to work further towards expanding their product offerings.
For instance, only a fraction of consumers report having access to other cannabis forms, such as concentrates, topicals, and tinctures, even in adult-use states.
Dual-Purpose Use
A remarkable trend within the cannabis industry is the dual-purpose use of cannabis products. A majority of cannabis consumers use the product for both medical and recreational purposes.
This dual use underscores the need for product development that focuses on delivering specific effects, such as boosting energy or relieving pain.
Supply and Access
Despite the growth of brick-and-mortar dispensaries, friends and family continue to be a significant source of cannabis for many users.
This trend highlights the potential of referral programs and word-of-mouth marketing for cannabis businesses.
Additionally, younger consumers often supply cannabis to older family members, suggesting that educating the younger demographic on products that would benefit their older relatives could expand the market further.
Unfortunately many consumers still face limited access to cannabis due to local regulatory restrictions and the geographical distribution of dispensaries, particularly outside major metropolitan areas.
Emerging Trends and Opportunities
In particular, younger consumers were found to be interested in new cannabis products and more likely to use both flower and non-flower products.
The cannabis industry in the United States is at a pivotal stage.
With an increasingly diverse consumer base, expanding product offerings, dual-purpose usage, and the prevalence of brick-and-mortar dispensaries, the industry has many exciting avenues for growth.
