Cannabis consumption provides medicinal benefits, even when deemed recreational. Whether for pain, stress, anxiety or sleep, consumers' motivations often overlap across both categories.
Recent research from New Frontier Data looks at how these motivations blur traditional distinctions between medical and recreational marijuana use, challenging perceptions about their differences.
As the cannabis industry grows, this overlap becomes even more significant. Investors who understand these shifting behaviors and evolving legal frameworks in each state will be best positioned to capitalize on the next wave of growth opportunities.
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New Frontiers For Cannabis
The study surveyed 3,868 U.S. cannabis consumers, asking them to classify their use as medical, recreational, or both. It analyzed consumption patterns, demographics, and spending habits, offering key insights into what drives different types of users.
This data sheds light on consumer behavior and its impact on market trends.
States like Ohio have already transitioned to recreational cannabis, while Florida, is poised for legalization in 2024 if a ballot initiative is approved. Arkansas, Nebraska, South Dakota, and North Dakota are also advancing ballot initiatives. Pennsylvania and Wisconsin are pushing forward despite political challenges.
Gender Differences And Consumer Behavior
According to the survey, women make up 46% of the cannabis consumer base and are more likely than men to use cannabis solely for medical purposes. However, both genders report similar rates of recreational use.
Additionally, home growers, though representing a minority at 54% of non-growers, are significantly more likely to use cannabis for both medical and recreational purposes.
"Market type is significantly correlated with self-identified consumer type. It is interesting to note that, even in medical-only markets, 27% of consumers consider themselves recreational only," reads the report.
Who Spends The Most?
Medical-only consumers exhibit higher spending habits, with many spending over $400 per purchase. By contrast, recreational consumers typically spend under $50, with some even obtaining cannabis for free. This discrepancy highlights the deeper financial commitment of those using cannabis for medical reasons, often tied to long-term therapeutic needs.
How Often?
Those who use cannabis for both medical and recreational purposes consume more frequently, often multiple times per day, while recreational-only users tend to consume the least. The report found that medical users are far more likely to report positive impacts on their lives from cannabis use, whereas recreational users often cite a mixed effect.
Market Loyalty
Medical users also show greater loyalty to specific businesses, purchasing from the same source for product consistency and reliability. In contrast, recreational users are less likely to stick with one store, leaning toward more varied buying habits.
This difference underscores the need for reliable, consistent products in medical marijuana markets.
“Medical-only consumers were the most likely to say that they always source their cannabis from the same business, while recreational-only consumers were the most likely to say they buy from different stores. This reflects the need of medical consumers to have consistent access to the same products,” reads the report.
Read Next: Ohio Cannabis Market Soars To $76M In Less Than 2 Months But Michigan Remains The Leader
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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