Traditionally, the global cannabis consumption market was viewed mainly as a raw material market, where consumers either grew their own plants or bought raw materials for processing. However, as the legal cannabis market has expanded, the product manufacturing chain—from cannabis plants to concentrates and extracts to final product—has evolved significantly. More consumers are entering the market, and their preferences are shifting toward convenient, ready-to-use products.
This change in consumption patterns has spurred the development of various FMCG formats, such as vapes, capsules, gummies, and drinks. Cannabis brands are no longer limited to selling raw flowers or traditional consumption methods. They now offer a diverse range of products that meet consumer demands for ease of use and consistent quality. Consequently, we have the answer, that the trend in cannabis products is increasingly reflecting characteristics of FMCGs—products that are high in demand, sell quickly, and are generally offered at competitive prices.
Cannabis Gummies from Cannabals
According to Headset, there is a growing preference among cannabis consumers for fast-moving consumer goods over purchasing raw materials or semi-finished products like cannabis concentrates. Sales data from January 2022 to July 2024 shows that sales of concentrates decreased from $110 million to $87 million. The decline in the market for cannabis concentrates highlights the shift toward convenience. While cannabis concentrate remains popular among many consumers, it requires special equipment (like a dabbing device) for use, which is less appealing compared to pre-packaged, ready-to-consume goods.
Headset data: The market share trend of cannabis concentrate category
However, the data indicates that sales of cannabis FMCG, including vapes and edibles, have grown significantly at the same period. Traditional cannabis flower has experienced slower growth, with only a 7% increase from 2022 to 2024, while ready-to-use products shave surged by 25%. This trend shows that consumer preferences shift towards convenience and ease of use.
Cannabis drinks, in particular, are becoming a significant player in this FMCG transformation. The cannabis beverages market is rapidly expanding, especially in regions like North America. Often marketed as alternatives to alcohol, canna drinks cater to both experienced cannabis users and newcomers who prefer a discreet, controlled dosage. According to Fortune Business Insights, the beverage market is expected to grow from $3.09 billion in 2024 to $117.05 billion by 2032. It reflects a massive market potential driven by innovative products that blend the cannabis experience with the familiar format of beverages.
In addition to cannabis drinks, products like all-in-one (AIO) vapes have gained traction as consumer-friendly alternatives to traditional cannabis consumption. Cannabis vape sector increased from $295 million in 2022 to $379 million by mid-2024. Much like FMCG products, these devices offer portability and ease of use, aligning with the broader market shift towards convenience.
Over the past decade, the demographic of cannabis consumers has undergone significant changes. Recent data reveals that millennials and Gen Z collectively account for 62.8% of cannabis sales in the U.S. And Gen Z’s market share rapidly increases each year. This younger generation is at the forefront of consumption trends, embracing a fast-paced, convenient, and laid-back lifestyle. These consumers are favoring products that offer immediate usability without the need for additional preparation, such as rosin vapes or cannabis-infused gummies and beverages.
Moreover, advancements in cannabis purification and food processing technologies, along with their scaling up, have significantly reduced the cost of accessing cannabis. The declining retail prices of cannabis concentrates and vapes have made these products more accessible to a broader audience. This trend accelerates adoption across various age groups.
As these products standardize in quality and dosage, they resemble FMCG items. They are like energy drinks or snack bars, aiming to meet consumer needs quickly. These changes point to an industry increasingly focused on delivering finished products that mirror the characteristics of typical FMCG items, including ease of use, consistency, and affordability.
The introduction of more Fast-Moving Consumer Goods (FMCGs) into the cannabis market represents a significant positive shift. This transformation offers numerous benefits for both cannabis consumers and companies alike.
For consumers, FMCG products are typically affordable, convenient, and available in various sizes and formats. They are often crafted with high-quality ingredients and adhere to stringent quality control standards, ensuring a reliable experience.
This shift towards an FMCG-style industry not only benefits consumers but also presents opportunities for cannabis companies. By adopting FMCG principles, these companies can effectively cater to a wider audience, including those who may be less familiar with raw cannabis products. Key advantages for businesses include:
Increased Sales：FMCG companies can boost their sales and revenue by offering a broader range of products and simplifying the consuming process for consumers.
Efficient Supply Chain Management：Enhancing the efficiency of supply chain operations is crucial for meeting consumer demands, maintaining profitability, and minimizing environmental impact.
Enhanced Customer Experience：Utilizing product services to improve the customer journey can lead to better customer service, an enjoyable shopping experience, accurate sales forecasting, and effective product placement.
Stronger Customer Relationship Management：High-quality customer service can significantly influence sales and foster lasting customer relationships, ultimately benefiting the business.
Many cannabis concentrate brands still rely on traditional packaging methods. They store products in glass jars and require consumers to use dabbing devices or other processing methods.
However, cannabis vape hardware brands like Artrix are introducing new products designed to make cannabis dabbing more accessible. Their DabGo and DabPod products allow consumers to enjoy cannabis concentrates through compact, easy-to-use vape devices without needing sophisticated equipment.
These innovations make it easier for concentrate brands to reach a broader market by simplifying the consumption process. With the DabGo all-in-one dab pen, consumers enjoy high-quality cannabis on the move. It is perfect for both new and experienced users. As more brands adopt FMCG strategies, cannabis concentrates will become more accessible. This shift enhances their appeal and helps brands remain competitive in a fast-changing market.
The cannabis industry is in the midst of a significant transformation, aligning itself more closely with FMCG principles as consumer preferences evolve. With the rise of cannabis vapes, edibles, and other ready-to-use products, cannabis is becoming more accessible to a broader audience. For cannabis businesses, this shift presents opportunities to streamline operations, enhance customer relationships, and expand their reach. As companies continue to innovate and introduce new products that prioritize convenience, the cannabis market will likely see even greater growth in the coming years.
This change in consumption patterns has spurred the development of various FMCG formats, such as vapes, capsules, gummies, and drinks. Cannabis brands are no longer limited to selling raw flowers or traditional consumption methods. They now offer a diverse range of products that meet consumer demands for ease of use and consistent quality. Consequently, we have the answer, that the trend in cannabis products is increasingly reflecting characteristics of FMCGs—products that are high in demand, sell quickly, and are generally offered at competitive prices.
Cannabis Gummies from Cannabals
Increasing Consumption Interest in Cannabis Fast-Moving Consumer Goods
According to Headset, there is a growing preference among cannabis consumers for fast-moving consumer goods over purchasing raw materials or semi-finished products like cannabis concentrates. Sales data from January 2022 to July 2024 shows that sales of concentrates decreased from $110 million to $87 million. The decline in the market for cannabis concentrates highlights the shift toward convenience. While cannabis concentrate remains popular among many consumers, it requires special equipment (like a dabbing device) for use, which is less appealing compared to pre-packaged, ready-to-consume goods.
Headset data: The market share trend of cannabis concentrate category
However, the data indicates that sales of cannabis FMCG, including vapes and edibles, have grown significantly at the same period. Traditional cannabis flower has experienced slower growth, with only a 7% increase from 2022 to 2024, while ready-to-use products shave surged by 25%. This trend shows that consumer preferences shift towards convenience and ease of use.
Cannabis drinks, in particular, are becoming a significant player in this FMCG transformation. The cannabis beverages market is rapidly expanding, especially in regions like North America. Often marketed as alternatives to alcohol, canna drinks cater to both experienced cannabis users and newcomers who prefer a discreet, controlled dosage. According to Fortune Business Insights, the beverage market is expected to grow from $3.09 billion in 2024 to $117.05 billion by 2032. It reflects a massive market potential driven by innovative products that blend the cannabis experience with the familiar format of beverages.
In addition to cannabis drinks, products like all-in-one (AIO) vapes have gained traction as consumer-friendly alternatives to traditional cannabis consumption. Cannabis vape sector increased from $295 million in 2022 to $379 million by mid-2024. Much like FMCG products, these devices offer portability and ease of use, aligning with the broader market shift towards convenience.
The Changes in Cannabis Consumption
Over the past decade, the demographic of cannabis consumers has undergone significant changes. Recent data reveals that millennials and Gen Z collectively account for 62.8% of cannabis sales in the U.S. And Gen Z’s market share rapidly increases each year. This younger generation is at the forefront of consumption trends, embracing a fast-paced, convenient, and laid-back lifestyle. These consumers are favoring products that offer immediate usability without the need for additional preparation, such as rosin vapes or cannabis-infused gummies and beverages.
Moreover, advancements in cannabis purification and food processing technologies, along with their scaling up, have significantly reduced the cost of accessing cannabis. The declining retail prices of cannabis concentrates and vapes have made these products more accessible to a broader audience. This trend accelerates adoption across various age groups.
As these products standardize in quality and dosage, they resemble FMCG items. They are like energy drinks or snack bars, aiming to meet consumer needs quickly. These changes point to an industry increasingly focused on delivering finished products that mirror the characteristics of typical FMCG items, including ease of use, consistency, and affordability.
The Win-Win of FMCG Transformation for Cannabis Companies and Consumers
The introduction of more Fast-Moving Consumer Goods (FMCGs) into the cannabis market represents a significant positive shift. This transformation offers numerous benefits for both cannabis consumers and companies alike.
For consumers, FMCG products are typically affordable, convenient, and available in various sizes and formats. They are often crafted with high-quality ingredients and adhere to stringent quality control standards, ensuring a reliable experience.
This shift towards an FMCG-style industry not only benefits consumers but also presents opportunities for cannabis companies. By adopting FMCG principles, these companies can effectively cater to a wider audience, including those who may be less familiar with raw cannabis products. Key advantages for businesses include:
Increased Sales：FMCG companies can boost their sales and revenue by offering a broader range of products and simplifying the consuming process for consumers.
Efficient Supply Chain Management：Enhancing the efficiency of supply chain operations is crucial for meeting consumer demands, maintaining profitability, and minimizing environmental impact.
Enhanced Customer Experience：Utilizing product services to improve the customer journey can lead to better customer service, an enjoyable shopping experience, accurate sales forecasting, and effective product placement.
Stronger Customer Relationship Management：High-quality customer service can significantly influence sales and foster lasting customer relationships, ultimately benefiting the business.
How Cannabis Concentrate Brands Capitalize on the FMCG Trend
Many cannabis concentrate brands still rely on traditional packaging methods. They store products in glass jars and require consumers to use dabbing devices or other processing methods.
However, cannabis vape hardware brands like Artrix are introducing new products designed to make cannabis dabbing more accessible. Their DabGo and DabPod products allow consumers to enjoy cannabis concentrates through compact, easy-to-use vape devices without needing sophisticated equipment.
These innovations make it easier for concentrate brands to reach a broader market by simplifying the consumption process. With the DabGo all-in-one dab pen, consumers enjoy high-quality cannabis on the move. It is perfect for both new and experienced users. As more brands adopt FMCG strategies, cannabis concentrates will become more accessible. This shift enhances their appeal and helps brands remain competitive in a fast-changing market.
Conclusion
The cannabis industry is in the midst of a significant transformation, aligning itself more closely with FMCG principles as consumer preferences evolve. With the rise of cannabis vapes, edibles, and other ready-to-use products, cannabis is becoming more accessible to a broader audience. For cannabis businesses, this shift presents opportunities to streamline operations, enhance customer relationships, and expand their reach. As companies continue to innovate and introduce new products that prioritize convenience, the cannabis market will likely see even greater growth in the coming years.
