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COMPARING ARCHETYPES 5© New Frontier Data, All Rights Reserved. <br />Introduction <br />As states continue to grapple with the <br />dynamics of regulation and legalization <br />and many early-adopting consumers <br />settle into predictable consumption <br />and purchasing patterns, producers <br />and retailers are becoming concerned <br />about the sustained growth of the <br />industry. But two key audiences <br />remain under-addressed: potential <br />consumers and those participating <br />in gray markets in legal states. <br />More than half of Americans live in <br />a state with some form of access to <br />high-THC cannabis. However, the <br />illicit market continues to outperform <br />legal state markets nationally. New <br />Frontier Data estimated that illicit sales <br />of cannabis surpassed $74B in 2022 <br />while legal sales were a mere $28B. <br />Based just on current legal states, <br />illicit sales will continue to surpass <br />legal market sales through 2030. <br />Meanwhile, the legal cannabis market <br />is embroiled in competition amongst <br />itself to serve the pool of consumers <br />who already rely on regulated channels. <br />A significant opportunity lies in tapping <br />into those dependent on unregulated <br />channels and the millions of adults <br />who are interested in cannabis but <br />remain hesitant. This report delves into <br />understanding these segments, based <br />on data from New Frontier Data’s <br />2023 cannabis survey of over 5500 US <br />adults across all market types who use <br />a wide range of sources for cannabis. <br />By understanding their behaviors, <br />preferences, and concerns, the industry <br />can better strategize its approach <br />to invite and integrate these legacy <br />and canna-curious audiences. From <br />demographics to product preferences <br />and barriers to entry, this report <br />highlights avenues through which <br />the cannabis market can grow by <br />welcoming these potential participants. <br />Page 256 of 322