US Cannabis Retail: Positioning and Marketing Report 2023

Definition of What’s Covered

This Report investigates the role of the dispensary and related marketing as it relates to how people shop for cannabis. Data draws from states where recreational cannabis use, in addition to medical use, is legal.

For the purposes of this Report, Mintel has used the following definitions:

• THC: Tetrahydrocannabinol, the component of cannabis that’s primarily responsible for the effects of marijuana on a person’s mental state.
• Recreational cannabis includes legal adult use of THC products.

Key Topics Analyzed

• State of the cannabis market and how it’s faring in the current economic climate.
• The evolving role of the dispensary.
• Cannabis consumption trends.
• Drivers of dispensary choice and loyalty.
• Product trial motivators.

US Cannabis Market Overview

The US cannabis market, shaped largely by evolving state-level legalities, experiences growth surges with every state’s embrace of legalization. Yet, hurdles like THC’s federal classification hinder its full potential, and implications of nationwide legalization loom large.

2022 saw retail sales dip by 20% due to price compression, challenging profitability. However, despite these challenges and volatile prices in mature markets, projections show promise, with the market’s resilience hinting at a correction phase, buoyed by consumer demand and wellness trends.

Cannabis Retail Marketing: Consumer Motivators and Opportunities for Dispensaries

Within this report, consumer trends are covered extensively, drawing from Mintel’s independent consumer research. Here we’ll discuss trends and their associated marketing opportunities.

Redefining cannabis marketing: beyond pricing to benefits and packaging

In the US cannabis market, while promotional pricing remains influential, there’s a growing emphasis on product innovation and benefits. Brands, taking cues from the vitamin industry, are adopting benefit-forward naming, exemplified by brands like 1906. Additionally, as the demographic of users broadens, older adults (especially those 65+) lean toward cannabis for health benefits. Effective marketing to this group requires health-focused messaging. Furthermore, the 22-34 age bracket shows a notable preference for compelling packaging, suggesting a future where packaging mirrors trends in sectors like food and beauty.

Seizing the canna-tourism opportunity

The rise of canna-tourism offers a lucrative avenue for dispensaries. With 60% of our consumer survey respondents expressing interest in exploring new dispensaries during their travels, there’s an evident desire to combine vacationing with cannabis experiences. Destination-worthy dispensaries, complemented by amenities such as lounges offering food and entertainment, are emerging as key attractions.

As the cannabis industry collaborates with the travel and hospitality sectors, establishing legal consumption areas and promoting authorized businesses will enhance the canna-tourism experience, converting travelers into loyal cannabis consumers.

This report reveals the latest consumer preferences and demands within cannabis retail, and offers marketing and positioning strategies for dispensaries. Get ahead in the cannabis industry and buy your copy today. Alternatively, browse our extensive library of cannabis market research.

Additional Features Included in Your Report

Different Digital Formats: PDF for conveniently sharing with your team, PowerPoint for quickly including in your presentation, as well as an Infographic and an Excel Databook.

Mintel’s Clients Portal: Our portal offers instant access to actionable analysis and trends pieces relevant to your industry that are published almost daily. You can also browse for more market research reports.

Expert Analysis

This report, written by Fiona O’Donnell, a leading lifestyles analyst, delivers in-depth commentary and analysis to highlight current marketing trends and opportunities in the US cannabis market, adding expert context to the numbers.

The cannabis industry is on a positive growth trajectory thanks to expanding legalization and increased consumption. Still, the industry faces hurdles including heavy regulation, price compression, oversupply and intense competition. Dispensaries need to adapt to this rapidly evolving industry by rethinking store format, highlighting wellness drivers and savvy promotional activity.