The cannabis industry is evolving, and by 2025, consumer preferences will play a pivotal role in shaping how retailers operate. As marijuana sales are projected to reach $58 billion by 2030, understanding what consumers want is more critical than ever. Retailers who cater to these demands stand to thrive in an increasingly competitive market.
Pre-Rolls and Pre-Ground Flower: Convenience Takes the Lead
Pre-rolls and pre-ground flower have taken center stage in cannabis retail. Between mid-2023 and mid-2024, sales of pre-rolls saw an impressive 11.9% increase, highlighting their growing appeal. The convenience of pre-rolls, combined with the wide range of potency options, makes them a favorite among consumers.
Pre-ground flower in larger packaging—like half-ounce or one-ounce pouches—has also gained traction. Together, flower and pre-rolls typically account for 50%-60% of total cannabis sales in most stores. Consumers appreciate the flexibility and ease these products provide, making them staples in many retail inventories.
Vapes: Popularity Across Demographics
The cannabis vape market, valued at $5 billion in 2023, continues to grow across all age groups. Vapes offer a quick and discreet way to consume cannabis, which many consumers find appealing. In states like Massachusetts, competitive pricing—$25 per gram in some cases—makes vape cartridges a cost-effective option.
At Silver Therapeutics, vape cartridges contribute to 20%-25% of retail sales. Their versatility and long-lasting effects ensure they remain a go-to choice for many.
Edibles: Gummies Take the Spotlight
Edibles, a consistently popular category, are experiencing shifts in consumer preferences. Gummies have emerged as the preferred edible, while sales of cannabis-infused chocolates have declined. There are two main reasons for this trend:
- Gummies offer a broader variety of flavors and formats.
- Rising cocoa prices have made infused chocolates more expensive to produce.
Edibles now represent approximately 18% of marijuana retail sales, with gummies leading the charge due to their affordability and versatility.
Cannabis Beverages: A Health-Conscious Alternative
The global cannabis beverages market was valued at $1.2 billion in 2023, with an anticipated growth rate of 19.2% annually through 2030. Millennials and Gen Z consumers are driving this trend, often choosing cannabis-infused seltzers over traditional alcoholic beverages. The shift reflects a broader perception of cannabis as a healthier, more discreet option compared to alcohol.
Wellness Products: Addressing Anxiety and Sleep
As economic and political uncertainties heighten stress, consumers are turning to cannabis products tailored to wellness. Edibles designed to promote sleep and relaxation have seen steady growth in popularity. These products meet the increasing demand for targeted solutions that address common concerns like anxiety and insomnia, making them a vital part of retail inventories.
Data-Driven Inventory Management: The Key to Success
Meeting diverse consumer demands requires a data-informed approach. Retailers are leveraging platforms like Canold, Dutchie, and Headset to analyze demographics and track product trends. These tools help retailers optimize their inventory, ensuring they stock high-demand items while avoiding overloading shelves with less popular products.
Optimal Inventory Practices
Carrying 200 to 250 SKUs is generally considered the sweet spot for providing variety without overwhelming store management. Retailers can enhance their inventory strategy by:
- Seeking customer feedback through surveys and interactions.
- Sharing insights with wholesale buyers to align on consumer needs.
- Hosting product demos to evaluate new offerings.
- Relying on budtenders for hands-on product testing and customer alignment.
This feedback loop ensures that retailers remain agile, ready to adapt to changing consumer preferences in real-time.
Looking Ahead: Cannabis Retail in 2025
The future of cannabis retail lies in understanding and anticipating consumer trends. With categories like pre-rolls, vapes, and wellness products gaining momentum, retailers have a clear path to success. By blending data-driven strategies with customer insights, the industry is poised to meet the challenges and opportunities that 2025 will bring.