January 7, 2025
Understanding your customer base isn't just helpful in today's competitive cannabis market—it's essential for survival. As the industry matures and social acceptance grows, with 56% of Canadians now viewing cannabis as socially acceptable (a 13% increase since 2018), retailers must adapt to serve increasingly diverse consumer segments.
The Canadian cannabis market represents a complex landscape where purchasing habits, preferences, and motivations vary significantly across demographics. Recent data shows that 40% of Canadian cannabis consumers use products daily, while another 20% consume weekly, and the remaining 40% are occasional users. This diversity in consumption patterns underscores the importance of nuanced retail strategies.
The reasons behind cannabis consumption have evolved significantly since legalization. While early adoption was largely driven by recreational and social factors, today's consumers primarily seek functional benefits. An overwhelming 70% of consumers use cannabis for relaxation or sleep, while 59% turn to it for stress and anxiety relief. Other significant motivators include mood enhancement (38%) and specific medical conditions (33%).
Social consumption, which once drove 58% of usage in 2018, dropped to 23% during the pandemic but has begun to rebound, now sitting at 25% and expected to grow as social gatherings become more frequent. This shift in consumption patterns reflects cannabis's increasing integration into daily life rather than being reserved for special occasions.
Today's cannabis consumers are increasingly sophisticated in their assessment of product quality. THC and CBD content remains paramount, with 64% of consumers citing these as key quality indicators. However, the market shows interesting divergences between consumer groups. While experienced consumers tend to prefer THC or a combination of THC and CBD, new users gravitate toward CBD-dominant products, with 39% of new consumers preferring CBD-only options.
Beyond cannabinoid content, consumers evaluate quality through various sensory aspects, including taste, smell, color, and bud density. The overall experience matters significantly, with users paying attention to both the quality and duration of effects, as well as the absence of negative side effects. This sophisticated approach to quality assessment means retailers must staff knowledgeable budtenders who can speak to these various aspects of product quality.
The retail landscape continues to evolve, with 49.4% of consumers preferring the in-store experience, while 26.6% opt for online shopping. This split highlights the importance of maintaining strong omnichannel presence. Young families typically prefer brick-and-mortar locations where they can interact with budtenders and learn from in-store displays. In contrast, diverse boomers show a stronger preference for online shopping, relying heavily on digital education through social media and internet resources.
As the market continues to mature, retailers must stay attuned to emerging trends and changing consumer preferences. New consumers increasingly favor non-combustible formats, with 40% choosing edibles and 38% opting for oils. This trend suggests retailers should maintain a diverse product selection that caters to both traditional preferences and emerging consumption methods.
The key to success in this evolving market lies in understanding and adapting to these various consumer segments while maintaining a focus on quality, education, and customer service. Retailers who can effectively balance the needs of different consumer groups while providing knowledgeable guidance will be best positioned for long-term success in the Canadian cannabis market.