The cannabis industry is constantly evolving, with new trends and challenges emerging every year. In 2024, Brendan Mitchel-Chesebro, an analyst at BDSA, a global firm specializing in cannabis market research, delves into the latest trends in cannabis consumption and how brands are adapting to economic challenges to ensure growth and profitability in a competitive market.
One of the key trends highlighted by Mitchel-Chesebro is the rise of premium cannabis products. With price compression affecting brand profitability, many companies are turning to premium offerings to set themselves apart in the market. Proprietary strains and high-quality inputs like rosin and live resin are attracting experienced consumers who are willing to pay a premium for superior taste and effects. Additionally, products designed to deliver specific mood-oriented effects are gaining traction as consumers seek personalized cannabis experiences.
To survive economic pressures, brands are implementing strategies such as automation and technological advancements in cultivation and manufacturing to improve cost efficiency. Targeted promotions and discounts have also become essential for retailers looking to drive sales without compromising profit margins. Mitchel-Chesebro emphasizes the importance of maintaining profitability while offering promotions to attract customers.
Innovation in product packaging is another trend shaping the cannabis market in 2024. Consumers are showing a preference for larger pack sizes, particularly in flower and pre-roll categories, as they seek value in terms of quantity and potency. This shift towards bulk purchasing reflects changing consumer preferences and purchasing behaviors.
Brand recognition and loyalty are critical factors in consumer purchasing decisions, with many consumers citing brand recognition as a key driver of product choice. Building brand loyalty through consistent and specific product experiences is essential for companies looking to stand out in a crowded market. According to BDSA’s data, a significant portion of US consumers choose retail locations based on their preferred brands, while others remain loyal to products and strains that have proven effective.
Overall, the cannabis industry in 2024 is marked by innovation, premiumization, and a focus on consumer-centric product development. Brands that can adapt to economic challenges, offer premium products, and build strong brand loyalty are well-positioned for continued growth and success in the competitive cannabis market.
