2025 Cannabis Market Insights for Retailers and Dispensaries

The constantly evolving cannabis industry promises that 2025 will be another dynamic year with new opportunities for growth in the forecasting. As a cannabis retailer or medical clinic, staying ahead of your competition is the key to success. This means understanding the key trends shaping the market and how this impacts your business and market share. Let’s dive into what you can expect in 2025.

Projected Growth and Market Dynamics

The market size in both Canada and the United States are poised for continued market growth and expansion in 2025. According to ATM capital markets, we can expect to see a compound annual growth rate (CAGR) of 5.2% in Canada from 2024 to 2030. Meanwhile, according to data from IBIS World, in the United States cannabis sales are projected to reach a staggering $71.8 billion by 2028. All of this growth results from evolving consumer prefrences, continued research into cannabis, as well as the shifts in the law.

Emerging Trends We See

1. New Product Development:

The biggest focus of the cannabis market is consumer needs which demands innovation. You can expect to see a surge in new product offerings that cater to a diverse consumer base with various prefrences in medical and recreational products..

According to Bourghton:

  • Minor Cannabinoids: New products with cannabinoids like CBG, CBN, and THCV offer specific health benefits and unique effects. These are rising in populatrity and demand rises.  

  • Fast-Acting Delivery Systems: Advances in nanoemulsions are revolutionizing edible and drink products enabling faster onset times, which is what customers want.

  • Reliable Dosage Formats: Consumers love to understand their dosage and build personal limits on what feels good to them. This is leading to a rise in popularity for capsules, oils, and tinctures that promise a more accurate dose.  

2. Technological Advancements:

Technology is taking off and transforming the cannabis industry. According to Royal Queen Seeds, you can expect to see trends like:

  • AI: Optimizing cultivation processes and personalizing cannabis recommendations for individual consumers in store and check-out kiosks.   

  • Automations: Automations in robotic trimming models for home grow kits and marketing tools such as email campaigns or text message campaigns will rise. 

  • Blockchain: Enhancing supply chain transparency and ensuring product authenticity on delivery.  

3. Changing Consumer Preferences:

Understanding your customers is key to growth and building loyalty. You want to ensure you think like your consumers so you can deliver a satisfactory retail experience that increases customer loyalty. Here are some evolving consumer preferences:

  • Wellness-focused products: Products that address anxiety, promote relaxation, and support overall well-being are in high demand. You want to ensure your budtenders and Promo TVs educate your clients on product benefits and effects.  

  • Personalized cannabis products: Consumers are increasingly interested in cannabis products that are tailored to their individual needs and preferences. Having informative digital menus allows customers to find a product that is in-stock that meets their specific needs. 

  • Sustainability: Eco-conscious consumers are seeking out cannabis products from companies with sustainable practices. Ensure you know which licensed providers (LPs) use sustainable practices so you can recommend products accordingly.   

The Regulatory Landscape

Canada:

If your business is located in Canada, you’ll be excited to know the Canadian government is considering revisions to the cannabis excise tax framework in 2025. This will lower taxes and simplifying tax laws making it easier for businesses to focus on growth efforts. These potential changes aim to curb the illicit market and encourage overall industry growth.

USA:

The US cannabis industry continues to navigate a complex regulatory landscape with mixed levels of legalizations that are expected to continue shifting in 2025 as states continue to adjust their laws. A DEA administrative law judge will rule on the rescheduling proposal in 2025 to change the status of cannabis to a schedule 3 drug. 

Questions

Q1: How can I stay competitive in the evolving cannabis market?

To stay competitive in 2025, embrace innovation and diversification. Make sure to explore new product offerings, consider incorporating technology like tablets for personalized recommendations, and prioritize sustainability to appeal to evolving consumer preferences.

Q2: What are some key challenges facing the cannabis industry in 2025?

The industry faces challenges such as economic pressures, competition from the illicit market, and regulatory hurdles. Despite this, the markets are projected to show significant growth in 2025. 

Q3: How can Budvue help my cannabis business succeed?

Budvue offers a comprehensive suite of tools to streamline your operations, enhance customer experiences, and drive growth. Our platform helps you manage inventory, engage customers, and build an unforgettable customer experience.

Conclusion

The cannabis industry in 2025 presents both challenges and opportunities. By staying informed about the key trends, adapting to the evolving regulatory landscape, and leveraging technology to your advantage, you can position your business for success.

Budvue is your partner in navigating this dynamic market. Our platform provides the tools and insights you need to optimize your operations, enhance customer experiences, and drive growth.

Ready to see how Budvue can help your cannabis business thrive? Book a demo today.

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