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CANNABIS CONSUMERS IN AMERICA 2023: PART 140 © New Frontier Data, All Rights Reserved. <br />Despite the growth in dispensary <br />usage, friends and family continue to <br />be a significant source of cannabis. <br />The use of informal sources such as friends <br />and family will never entirely disappear, <br />but the importance of this channel can be <br />capitalized upon by brands and by leveraging <br />referral programs and other initiatives to <br />encourage word-of-mouth marketing. <br />Younger consumers are not only <br />shopping for themselves, but for older <br />family members as well. Half of current <br />consumers ages 18-34 report supplying friends <br />& family, and 10% of consumers ages 55 and <br />older say family is their primary source of <br />cannabis. This underscores the importance of <br />educating younger consumers on products <br />that would benefit their older relatives. <br />Which forms consumers use is limited <br />by what they have access to. Fewer than <br />half of all consumers report having access <br />to any forms of cannabis other than flower, <br />prerolls, and edibles, even in adult use states. <br />The shift toward non-flower products will <br />continue slowly as access to and familiarity with <br />these forms increases over the coming years. <br />As legal markets expand and dispensaries <br />diversify their product offerings, <br />consumer interest in trying new cannabis <br />products will grow in the short term. <br />This presents an opportunity for operators and <br />investors to explore innovative product forms <br />and delivery methods. In particular, younger <br />consumers are more likely to be interested in <br />new products and are more likely to use both <br />flower and non-flower products, so focusing on <br />this demographic could yield positive results. <br />The increasing prevalence of brick- <br />and-mortar dispensaries as the primary <br />source of cannabis reflects the expansion <br />of legal markets. The share of sales <br />captured by brick-and-mortar dispensaries <br />will increase over the coming years as more <br />states legalize and regulate cannabis and this <br />channel becomes available to more consumers. <br />The degree to which illicit dealers continue to <br />prevail as a source within a state will depend <br />on the cost of cannabis and the retail options <br />created by that state’s regulatory framework. <br />Younger consumers are <br />more likely to be <br />interested in new <br />products and are more <br />likely to use both flower <br />and non-flower products. <br />Page 246 of 322