BDSA cannabis data

New BDSA Cannabis Data Unveils Shifting Trends in the U.S. Legal Market for 2024

by | Jan 17, 2024

BDSA cannabis data

Written by Kristina Etter

A freelance writer and journalist based in Colorado, Kristi is a seasoned pro in cannabis industry content creation and reporting. Her career includes two decades of corporate IT roles at major firms like Maytag Appliances, Wells Fargo Financial, and DuPont Pioneer, which provided her with a unique perspective on the intersection of technology and cannabis.

BDSA cannabis data sheds light on new consumer trends in the legal cannabis market.

In the ever-evolving landscape of the U.S. legal cannabis industry, where the demand for affordable yet high-quality products is steadily on the rise, brands find themselves navigating a market characterized by constant fluctuations and intense competition. To discuss these fluctuations, I had the privilege of sitting down with BDSA Analyst, Brendan Mitchel-Chesebro.

With a keen eye on shifting consumer preferences within the U.S. Legal Adult-Use market, Brendan shared invaluable insights that shed light on the transformative journey of cannabis products and consumers.

BDSA cannabis data

Exploring BDSA cannabis data and trends shaping the industry, from flower and vape products leading in sales to the emergence of premium alternatives like infused pre-rolls, solventless extracts, and minor cannabinoid-infused edibles, it becomes evident that the cannabis market is experiencing profound metamorphosis as it matures.

Discussing the typical market patterns, Brendan stated, “We’ve seen flower consistently taking the top spot as far as market share. After that, it’s usually vape, then depending on the market, it’s usually edibles, pre-rolls, then extracts.”

Brendan’s analysis provides a comprehensive overview of the market and uncovers the driving forces behind the surging popularity of premium cannabis products.

In the kaleidoscopic landscape of the U.S. legal cannabis market, 2023 proved to be transformative, witnessing a paradigm shift in consumer preferences. Potency, nuanced flavors, and premium packaging have become the focal points steering the choices of cannabis enthusiasts.

Mitchel-Chesebro mentioned the correlation between affordability and high quality, revealing a dynamic market where consumer demand is reshaping the industry.

Brendan highlighted a noteworthy decrease in the cannabis extracts segment, now comprising just 6% of total cannabis sales—a significant drop from over 10% in the past. However, amidst this decline, solventless products have emerged as a star player, experiencing a notable rise from 14% in Q2 2022 to 18% in Q3 2023. Within this category, live rosin stands tall, commanding a staggering 84% market share.

Infused pre-rolls, a growing segment in the cannabis space, have witnessed a remarkable 63% increase in average retail price compared to their non-infused counterparts. This price surge reflects the inherent value and production costs associated with concentrates, portraying a market that values craftsmanship and premium experiences.

Despite the industry grappling with price compression, infused pre-rolls maintain their premium pricing, signaling a broader market trend towards a preference for high-quality, specialized products. In this ever-evolving landscape, the consumer’s appetite for distinct and refined offerings is reshaping the pricing dynamics within the cannabis market.

Other Key Market Segments: Vapes and Edibles

The disposable vapes category also emerges as a significant player, experiencing a 50% surge in market share from Q3 2022 to Q3 2023. Notably, rosin disposables have outshone the competition, registering an impressive 86% growth, while live resin disposables follow suit with a commendable 24% increase.

Brendan stated, “Extracts make up a smaller portion of the total market now compared to in the past, attributed partly to the rise of the vape category.”

The pricing narrative aligns with the premiumization trend, as rosin disposables command a 25% higher average price compared to the broader disposables category.

BDSA cannabis data

Solventless Products – Balancing Quality and Price

Dissecting the pricing dynamics of solventless products, the average retail prices (ARPs) exhibited a substantial +34% increase compared to their counterparts. This premium attached to solventless options underlines a consumer demand for quality and a heightened cannabis experience.

Brendan highlighted the conundrum faced by brands as they navigate between maintaining product excellence and addressing the affordability factor. The surge in ARPs for solventless products sheds light on a market willing to invest in a superior cannabis experience, forcing brands to recalibrate their strategies for this discerning consumer base.

As Brendan pointed out, the allure of solventless options extends beyond mere pricing dynamics.BDSA cannabis data indicates rosin disposables witnessed an impressive 86% growth in market share within the disposable category, signaling a profound shift in consumer preferences.

The extract category, particularly in the subcategories of rosin, hash, and bubble hash, is experiencing a revival, marking a significant departure from conventional trends. This resurgence underscores a growing appetite for artisanal and high-quality cannabis products, challenging brands to not only meet but exceed consumer expectations in this competitive landscape.

Demand for Minor Cannabis Cannabinoid-Infused Edibles

Minor cannabis cannabinoids, such as CBN and CBG, are carving their niche in the edibles market. These products, lauded for their consistent and targeted effects—such as aiding sleep or providing pain relief—hold sway over consumers, commanding higher prices than THC or CBD-only edibles. BDSA cannabis data anticipates continued growth and innovation, particularly within the hemp-derived cannabinoid market, into 2024.

Demographics and Customer Segments

The generational divide in cannabis consumption patterns becomes evident, with younger demographics—Gen Z and millennials—leading the charge in favoring high-potency and premium products.

This tech-savvy cohort exhibits a penchant for infused pre-rolls and solventless extracts, with a staggering 58% reporting usage of infused cannabis pre-rolls. However, their discerning taste comes with a price sensitivity, adding a layer of complexity to market dynamics.

Pricing Strategy and Market Positioning

In the midst of this shifting landscape, Brendan outlines strategic imperatives for cannabis companies navigating the premiumization wave. A comprehensive pricing strategy and competitive analysis emerge as linchpins for success in the premium cannabis market.

Local brands with established consumer bases find themselves strategically positioned to capitalize on the premiumization trend, leveraging brand loyalty and recognition. Mitchel-Chesebro underscores the critical need for comparative pricing analysis and targeted marketing efforts to attract the right consumer segments.

“As brand[s] get into these spaces and put out more products geared towards experienced high-tolerance consumers, prices are going down. There’s never been a better time to find cheap cannabis and affordable products that really deliver quality cues,” Brendan added.

Brendan’s insights from BDSA cannabis data provided a panoramic view of the U.S. legal cannabis market’s evolution, unveiling the complex interplay of consumer preferences, market dynamics, and industry strategies.

“I think overall the extract space is shifting over much more to the premium side of things. We’ve seen a huge rise leading up to this solventless sort of boom recently in live resin concentrates,” Brendan added.

As the green wave continues to surge, these trends offer a compass for brands seeking to navigate the intricate waters of the ever-growing cannabis industry. The journey ahead holds both challenges and opportunities, and only those attuned to the evolving rhythm of consumer demands will ride the crest of success in this flourishing market.

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