Blog

As the cannabis industry continues to evolve, understanding consumer preferences has become crucial for retailers aiming to thrive in this competitive landscape. With projected sales reaching an astounding $58 billion by 2030, the way consumers engage with cannabis products will significantly influence retail strategies moving forward. This article delves into the anticipated trends and preferences of cannabis consumers as we approach 2025, providing insights that can help retailers make informed decisions.

The Rise of Convenience: Pre-Rolls and Pre-Ground Flower

Understanding the Popularity of Pre-Rolls

Convenience is a driving force behind the increasing sales of pre-rolls. Between June 2023 and June 2024, this segment saw a remarkable 11.9% surge in revenue. Pre-rolls offer a hassle-free solution for consumers who seek immediate enjoyment without the need for preparation. This convenience factor is particularly appealing to new users who may not have experience with rolling their own joints.

The Growth of Pre-Ground Flower

Alongside pre-rolls, pre-ground flower packaged in larger quantities, such as half-ounce and one-ounce pouches, is gaining traction. This trend reflects a broader consumer desire for accessible and ready-to-use products. The combination of pre-rolls and pre-ground flower typically constitutes about 50%-60% of total sales in cannabis retail, making them essential offerings for any dispensary.

Potency and Variety

The appeal of pre-rolls and ground flower also lies in the variety of potency options available. Consumers are increasingly seeking products that cater to their specific preferences and needs. Retailers can capitalize on this trend by offering a diverse range of strains and potency levels, ensuring that customers find exactly what they are looking for.

The Vape Revolution: A Growing Market

The Surge in Vape Popularity

Vaping has emerged as a popular consumption method among cannabis users, particularly in younger demographics. The cannabis vape market was valued at approximately $5 billion in 2023, showcasing its rapid growth. Vapes provide a discreet and efficient way to consume cannabis, appealing to those who value convenience and subtlety.

Cost-Effectiveness and Accessibility

In markets like Massachusetts, where vape cartridges can be priced as low as $25 per gram, they present an affordable option for consumers. This accessibility has contributed to the increasing market share of vapes, which account for 20%-25% of sales for some retailers, such as Silver Therapeutics in Boston.

Demographic Insights

Understanding the demographics of vape consumers is essential for retailers. By analyzing data from various platforms, retailers can tailor their product offerings to meet the specific preferences of different consumer groups. This data-driven approach ensures that retailers remain aligned with market trends and customer desires.

Edibles: A Shift in Consumer Preferences

The Growing Popularity of Gummies

Marijuana-infused edibles are on the rise, with gummies emerging as the most favored option among consumers. The appeal of gummies lies in their variety of flavors and flexibility, making them a popular choice for both new and seasoned users. This trend is indicative of a broader shift in consumer preferences within the edibles category.

Decline of Infused Chocolates

Conversely, the sales of infused chocolates have seen a decline, primarily due to rising cocoa prices that have increased production costs. As a result, gummies have become a more cost-effective option for both manufacturers and consumers. On average, edibles represent approximately 18% of total cannabis retail sales, highlighting their importance in the market.

Exploring New Edible Formats

As consumer preferences continue to evolve, retailers should remain open to exploring new edible formats. Innovative products, such as cannabis-infused beverages and snacks, could capture the attention of health-conscious consumers seeking alternatives to traditional edibles.

The Emergence of Cannabis Beverages

A Growing Market Segment

The cannabis beverage market has been gaining momentum, valued at approximately $1.2 billion in 2023. With a projected compound annual growth rate of 19.2% from 2024 to 2030, this segment presents a significant opportunity for retailers. Many consumers, particularly Millennials and Gen Z, view cannabis-infused beverages as a healthier alternative to alcohol.

Shifting Consumer Preferences

As more consumers opt for discreet cannabis options, beverages like seltzers and teas are becoming increasingly popular. Retailers can capitalize on this trend by offering a diverse selection of cannabis beverages that cater to various tastes and preferences.

Marketing Strategies for Beverages

To effectively market cannabis beverages, retailers should focus on educating consumers about the benefits and unique qualities of these products. Engaging packaging, informative labeling, and tastings can enhance the consumer experience and drive sales.

Wellness Focus: Relaxation and Sleep Products

Addressing Consumer Wellness Needs

As stress levels rise due to various societal factors, consumers are increasingly seeking products that promote relaxation and improved sleep. Cannabis retailers are responding to this demand by offering products specifically formulated to address these wellness needs.

Popular Product Offerings

Edibles designed for sleep and relaxation are gaining traction, reflecting a broader trend towards wellness-oriented cannabis products. Retailers should consider expanding their inventory to include items that cater to these specific consumer needs, ensuring they remain relevant in a competitive market.

The Importance of Education

Educating consumers about the benefits of relaxation and sleep products is vital for driving sales. Retailers can provide valuable information through in-store consultations, workshops, and online resources, helping consumers make informed choices.

Data-Driven Inventory Management

The Role of Data in Retail Strategies

To meet the diverse preferences of today’s cannabis consumers, retailers must adopt a data-driven approach to inventory management. Utilizing platforms like Canold, Dutchie, and Headset can provide valuable insights into consumer demographics and product popularity.

Tailoring Inventory to Local Preferences

By analyzing this data, retailers can make informed decisions about their product offerings, ensuring they align with local preferences. This approach is particularly beneficial for multi-location retailers, allowing them to adapt their inventory based on regional trends.

Best Practices for Inventory Optimization

Maintaining an optimal inventory range is crucial for meeting customer demands. Retailers should aim to carry between 200 to 250 stock-keeping units (SKUs) to provide variety while keeping inventory manageable. Seeking customer feedback through surveys and interactions can help retailers refine their inventory and ensure they are meeting consumer needs effectively.

The Importance of Customer Feedback

Engaging with Consumers

To stay ahead of shifting consumer preferences, cannabis retailers should prioritize customer engagement. Gathering feedback through surveys, social media interactions, and in-store conversations can provide valuable insights into what consumers are looking for.

Implementing Feedback into Strategy

Retailers can leverage this feedback to inform their product offerings and marketing strategies. By actively listening to customers, retailers can quickly adapt to changing preferences and ensure they remain relevant in the evolving cannabis landscape.

Building Strong Relationships

Establishing strong relationships with customers fosters loyalty and encourages repeat business. Retailers should prioritize creating an inviting atmosphere where customers feel comfortable sharing their thoughts and preferences.

Anticipating Future Trends

Staying Ahead of the Curve

As the cannabis industry continues to evolve, retailers must remain vigilant in monitoring emerging trends and consumer preferences. By staying informed about market developments and consumer behavior, retailers can position themselves for success in the coming years.

Embracing Innovation

Innovation will play a crucial role in shaping the future of cannabis retail. Retailers should be open to exploring new product formats, consumption methods, and marketing strategies to capture the attention of evolving consumer demographics.

Collaborating with Industry Experts

Collaborating with industry experts, manufacturers, and influencers can provide valuable insights into emerging trends. By engaging with thought leaders in the cannabis space, retailers can gain a deeper understanding of consumer needs and preferences.

Conclusion: Preparing for 2025 and Beyond

As we approach 2025, cannabis retailers must prioritize understanding consumer preferences to effectively shape their product offerings and inventory. By focusing on convenience, wellness, and data-driven strategies, retailers can position themselves for success in this dynamic industry. The ability to adapt to changing consumer demands will be key to thriving in the competitive cannabis market, ensuring that retailers remain relevant and successful in the years to come.

This article provides a comprehensive overview of how consumer preferences are expected to shape the cannabis retail landscape in 2025. By focusing on trends such as convenience, wellness, and data-driven strategies, retailers can better align with the needs of their customers and position themselves for success in the evolving cannabis market.