Cannabis in North America: Ease of Access and Format Diversity Drive Adult Use

In Canada, growth of adult-use cannabis is being driven by consumers new to cannabis and those converting from the illicit market. Additionally, ease of access and growing availability through recreational dispensaries are attracting more consumers from the medical market. A similar trend can be observed in the US, in states where recreational adult-use is legal. Ease of access and format innovation will continue to pull new consumers from the medical and illicit markets.

Adult-use captures consumers from medical-use, the illicit market and new consumers

There were a reported 3.8 million adult-use cannabis consumers in Canada in 2021, and value sales are expected to grow by 19% in 2022, as the consumer base expands and spending per capita rises with the development of value-added formats. Flower is the most popular format in adult-use cannabis. However, growth is expected to slow as demand stabilises and flower loses share to alternative formats, like vapour products, where the range of flavours, convenience, and discreet nature appeal to consumers.

New consumers are coming from the illicit market or are altogether new entrants. Additionally, following the legalisation of adult-use cannabis in late 2018, Canada’s mature medical cannabis market has seen value sales transferred to the adult-use market. While many medical cannabis patients continue to use the existing medical infrastructure to manage or treat certain symptoms, disorders, and conditions, for others it’s easier to access adult-use cannabis to treat minor ailments. Formats most used in the medical market – flower and vapour products – are also the most popular in adult-use. Consumers who may be eligible for medical cannabis that opt for adult-use will have access to the same formats.

Read more at Euromonitor

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