search’s senior research executive Madhav Pitaliya noted that increased legalisation has significantly reshaped the narrative around cannabis sales and heavily impacted how retailers need to approach consumers in today’s market.  Pitaliya explained, “Cannabis is moving from the fringe to mainstream, driven by increased legalisation, a growing number of wellness-focused products and changing consumer preferences.” In addition to focusing on shifting consumer preferences, Pitalyia recommended that retailers need to focus on education and omnichannel access, invest in consumer trust and move in sync with state and federal-level reforms to be best positioned to lead in the years to come.  As the legalised cannabis industry continues to grow, despite starts and stops caused by shifting federal regulations per state, retailers need to stay up to date on the varying types of consumers interested in exploring this market and the types of products they’re searching for.  Legalised cannabis industry retail trends  Coresight Research analyst Pitaliya remarked that over the next five years, the legalised cannabis industry’s growth will be driven primarily by the expansion of adult-use cannabis sales for recreational purposes.  In 2024, recreational sales made up 71.7 per cent of total cannabis sales, with the penetration rate set to remain about 70 per cent in the coming years, reaching nearly 80 per cent by 2029.  Medical sales made up the remaining 30 per cent share of sales within the legalised cannabis retail industry.  One factor behind the growth of recreational sales is a growing consumer pattern of substituting alcohol and tobacco products with cannabis items.  Over the past 12 months, Coresight Research found that about 32 per cent of cannabis and psychedelic mushroom buyers had shifted spending away from alcohol and toward cannabis and psychedelic mushroom products, as well as away from tobacco and vaping products (16 per cent of consumers) and over-the-counter medicines (14 per cent). “These findings reveal that cannabis/psychedelic mushroom products are not just add-ons for consumers but are actively displacing other purchases, particularly those linked to relaxation, stress relief and wellness,” said Pitaliya. “For retailers, this signals an opportunity to reframe cannabis and psychedelic mushroom products as part of a broader wellness portfolio, reflecting their growing role in consumers’ stress relief, sleep and self-care routines.” One product category that has witnessed notable growth within this sector is CBD and THC-infused beverages, especially as more consumers seek out alcohol-free alternatives.   Research firm Euromonitor International forecasted that the market for hemp-derived THC beverages is expected to reach US$4.1 billion by 2028. A notable rise considering that sales of cannabis beverages, excluding hemp-derived intoxicating products, reached just US$952 million in 2023. Targeting today’s cannabis consumer The traditional image of the average cannabis consumer being a man in his early 20s to early 40s remains true in today’s cannabis market. Coresight Research’s data showed that nearly half of consumers aged 18 to 29 and just over one-third of those aged 30 to 44 purchased cannabis products in the past twelve months. Additionally, the data showed that one in three men bought cannabis products during this time period, whereas just under a quarter bought these products. Pitaliya recommended that retailers and dispensaries should prioritise targeting younger, male consumers through cannabis-related promotions to drive higher sales and build long-term customer loyalty in this growing market.  However, this data shouldn’t discourage retailers from focusing on female consumers with women-wellness and lifestyle-oriented cannabis products or on consumers over 60 years old, as this market has largely been left out of the conversation about the benefits of cannabis.    Not to mention that retailers need to place more of a focus on consumers with higher disposable incomes.  By income, Coresight Research confirmed that those earning between US$150,000 and US$200,000 and above have the highest rate of daily consumption (56 per cent).  Individuals earning US$200,000 and above showed the highest rates of non-daily usage, with half of these consumers consuming cannabis either a few times a week or a few times a month. Pitaliya noted, “Brands and retailers have a strong opportunity to develop premium, lifestyle-driven cannabis products and loyalty strategies aimed at younger and higher-income consumers, many of whom have now integrated cannabis products into their regular routines.” Taking advantage of the growing legalised cannabis market  Retailers that risk losing advantage in today’s growing cannabis market are drugstores and mass retailers, like Walgreens and Walmart, that have not yet embraced CBD. Pitaliya explained that these brands’ “hesitation, likely due to regulatory ambiguity, may cause them to miss the window for building brand equity in the cannabis and psychedelic mushrooms market.” He added that “traditional tobacco and alcohol retailers that ignore these emerging categories could face further wallet share erosion as consumer preferences shift toward wellness-focused alternatives.” Meanwhile, players that have been shifting the industry forward with creatively designed products and inclusive initiatives include retailers like The Travel Agency and consumer product goods brands like Sundae Flowers or Edie Parker.  Retailers like The Travel Agency are primed to win in today’s market as the brand places a strong focus on curating premium-tier products from a plethora of cannabis brands across multiple categories, from flowers to sexual wellness, while prioritising consumer education and service through enhanced employee training.  Meanwhile, Edie Parker, a female-founded and run brand, uniquely caters to female consumers with products like handbags with a retractable lighter holder and aesthetic smoking accessories that could double as home decor. And Sundae School caters to Gen Z and younger millennial shoppers seeking out cleaner product formulations and unique flavour options, including lychee, yuzu and matcha, and brightly-coloured packaging.  As with any other retail market sector, the brands and retailers that aren’t keeping up are the first to “lose” in the quickly growing cannabis industry.