Cannabis Market Growth in 2023
With the US cannabis industry expected to exceed 30 billion in annual sales in 2023, the outlook for future market growth is optimistic. By 2025, studies even suggest that retail cannabis sales will reach 52.6 billion!
Since the market is expected to reach new heights, it's essential to keep up with the popular trends. As a smoke shop, convenience store, or dispensary owner, now is the time to plan for the future and reap the benefits of new industry innovations. Luckily, this blog will dive deeper into what the future of cannabis holds so you can stay on top of the game and maximize your profits in 2023!
How Big is the Cannabis Market?
The US cannabis market has grown rapidly, with new state legislation passed annually. Newly formed markets in New Mexico and Arizona have accounted for a significant increase in national cannabis sales. With 358.2 million in sales from New Mexico alone, it paints a promising outlook for progress nationwide.
While these newly formed markets are producing impressive numbers, the OG states that paved the way for them, like Michigan and California, continue to see growth in sales. For example, Michigan saw a 28.2% growth in sales in 2022, years after the legalization of recreational cannabis.
Since the cannabis market is expanding, it's no surprise that the cannabis accessories market is projected to produce record-breaking numbers as well. The accessories market is expected to grow to 101 Billion by 2032, with vaporizers continuing to lead sales with 30% of revenue.
Is Cannabis a Fast-Growing Industry?
Cannabis is among the top growing industries in the US, and the number of businesses stocking cannabis-related goods has exploded. These businesses range from dispensaries, and pharmaceutical companies, to general storefronts such as convenience stores, gas stations, and smoke shops. To stay ahead of the curve, we recommend keeping the latest cannabis-related goods in stock on your shelves!
Cannabis Industry Trends to Look For In 2023
Cannabis Flower Market Will Be Steady
Although the cannabis flower market has remained the most dominant category within the industry, other categories like edibles, tinctures, and concentrates have continued to gain popularity in the cannabis community. For example, the market for cannabis flower grew 11.5% over the past year, but the overall cannabis market grew 18%. This leads us to believe that consumers are still buying bud but are also seeking out more unique ways to consume their cannabis.
Cannabis Concentrate Market Will Continue to Grow
Over the past few years, concentrate products have grown in popularity among the cannabis community. According to analysts, there has been an increase in cannabis consumers who say that they use concentrates, from 22% to 29% in the last two years. This can be accredited to a few things: high-tolerance cannabis users are getting into concentrates for a more potent cannabis experience.
In addition, wholesale flower prices have dropped, making it cheaper to produce concentrates and sell them at an affordable price point. This gives consumers the purchasing power to invest in better accessories to enhance their experience. With new accessories fused with modern tech like sub-ohm vaping, we predict that consumers will be looking for potent and flavorful ways to dab throughout 2023.
Dry Herb Vapes Will Grow in Popularity
Dry herb vaporizers have seen a steady increase in popularity over the years, with innovation dominating the industry. Consumers are excited to invest in modern dry herb vape technology that gives them the cleanest way to smoke their flower. Whether consumers seek a healthier alternative to consuming flower or enjoy discrete on-the-go consumption, dry herb vaporizers will continue to be in the top-selling cannabis accessories.
Frequent Cannabis Users Seek Innovation
Since new users only make up 6% of all cannabis sales, it's essential to accommodate frequent consumers with new innovative ways to consume cannabis. With this in mind, we predict an increase in unique product offerings to entice seasoned veterans of the cannabis industry. In addition, we predict that big players in the cannabis accessory game like Ooze will get creative with new products like advancements in ceramic technology, new coil forms, and materials. This is sure to keep things fresh and flavorful.
Vapes Will Continue to Dominate the Market
Vapes are an easy-to-use and convenient way to feel the effects of THC so, it's no surprise they continue to be so popular among cannabis consumers. The younger generation of cannabis consumers dominates the vape market, with 47% of vape consumers under the age of 35. With many young people having busy on-the-go lives, vapes are a great option to satisfy their cannabis needs. We predict that vapes will continue to thrive in the modern era of cannabis consumption.
What Is the Future of the Cannabis Industry?
With the negative stigma of cannabis consumption seeming to diminish over the past decade, the industry's future is looking bright. In the US, 88% of adults believe cannabis should be legal for medical or recreational use. With newly formed markets popping up throughout the US, the number of sales of cannabis and cannabis accessories has made an impressive leap over 2022. We expect to see the same in 2023, with newly legal states increasing overall sales.
As consumers look for new exciting ways to elevate their smoking experience, the optimism of the cannabis industry burns bright. We recommend stocking your store with the latest smoking accessories on the market so you can have a highly profitable year!