US Cannabis Consumers Prefer High Potency Premium Products, Rosin And Infused Pre-Rolls

The U.S. legal cannabis market has witnessed significant shifts in 2023. Factors like potency, taste and premium packaging are now driving consumer choices, with a particular preference for the nuanced flavors of solventless products like live rosin, explains BDSA analyst Brendan Mitchel-Chesebro.

He notes a decrease in the cannabis extracts segment to just 6% of total cannabis sales, down from over 10% previously. Meanwhile, solventless product sales within this category rose from 14% in Q2 2022 to 18% in Q3 2023, with rosin dominating 84% of this segment.

Infused pre-rolls have seen a 63% increase in average retail price compared to non-infused ones, reflecting the added value and costs of concentrates.

Despite industry-wide price compression, infused pre-rolls maintain their premium pricing, indicating a market trend towards high-quality, specialized products.

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Key Market Segments: Vapes and Edibles

The disposable vapes category experienced a 50% increase in market share from Q3 2022 to Q3 2023.

Specifically, rosin disposables grew by 86% and live resin disposables, by 24%. Rosin disposables are priced 25% higher on average than the overall disposables category, signaling a shift towards premium offerings as well.

Demand For Minor Cannabis Cannabinoid-Infused Edibles

Minor cannabis cannabinoids such as CBN and CBG are gaining traction in the edibles market. These products command higher prices than THC or CBD-only edibles due to their consistent, targeted effects like aiding sleep or pain relief. BDSA predicts continued growth and innovation, particularly in the hemp-derived cannabinoid market, in 2024.

Demographics And Customer Segments

Younger demographics, notably Gen Z and millennials, show different consumption patterns, favoring high-potency and premium products.

They are more likely to consume products like infused pre-rolls and solventless extracts, with 58% of younger consumers reporting infused cannabis pre-roll usage. However, they are also more price-sensitive compared to the general consumer base.

Strategic Considerations For Cannabis Companies: Pricing Strategy And Market Positioning

  • Mitchel-Chesebro highlights the need for a comprehensive pricing strategy and competitive analysis for success in the premium cannabis market
  • Local brands with established consumer bases are well-positioned to capitalize on premiumization opportunities
  • He underscores the importance of comparative pricing analysis and marketing to attract the right consumer segments, especially in a market with increasing brand loyalty and recognition.

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