How to Conduct Cannabis Market Research

What Is Cannabis Market Research and Why Does It Matter?

Cannabis market research is the process of collecting and analyzing information about your audience, competitors, and market conditions to make strategic decisions. Whether you're building a cannabis business plan or launching a new product, market research ensures your offering is aligned with real consumer demand.

Demographic analysis – Who is your ideal customer (age, gender, income, location)?

Identifying consumer behavior – What are their shopping habits, product preferences, and need states?

Trend Analysis – Monitor shifts in consumer preferences (e.g., edibles vs. vape pens).

Consumer Surveys & Feedback – Conduct online and in-store surveys to gather real insights.

Competitor analysis – Study what successful brands are doing and where they fall short. What product gaps exist in your area, develop your unique value prop.

State regulations – Ensure all business and marketing strategies comply with state advertising laws.

💡 Pro Tip: Use tools like Google Trends, Headset.io reports, and industry publications like MJBizDaily, or Cannabis Business Times to stay ahead of the curve.

‍

Why Is Cannabis Market Research So Important?

Even the best cannabis business plans fall apart if built on assumptions. The most successful cannabis brands solve real consumer problems and align with local demand. Your research should uncover:

• What problem you’re solving
• Who you're solving it for
• How you're different from competitors

Avoid guesswork and surface-level data. Understand your audience’s why—their motivations, values, and behavior patterns.

‍

The Role of Consumer Insights in Cannabis Growth

In a regulated, fast-moving market like cannabis, assumptions don’t cut it. Market research helps cannabis brands, dispensaries, and cannabis delivery services deeply understand their customers' behaviors, preferences, and unmet needs.

Market research helps cannabis entrepreneurs understand:

• Customer preferences and unmet needs
• Which products to stock or promote
• How to position your brand for long-term loyalty

This allows you to validate demand, optimize product mix, improve brand messaging, and drive more efficient ad spend. Great brands combine quantitative data with qualitative insights to shape smarter strategies.

Learn everything you need to know about Cannabis Target Audiences & Segmentation here.

What Market Research Tells You That Data Alone Can’t

Raw data (e.g., sales numbers) tells you what happened. Market research reveals why it happened. You’ll uncover:

• Consumer motivations and hesitations
• Cultural and regional preferences
• Emotional and lifestyle connections

Quant and qual insights together lead to better business decisions.

They bring forward motivations, hesitations, trends, and cultural signals that data dashboards miss.

‍

Tools for Cannabis Market Research and Audience Data

Free vs. Paid Tools

• Free: Google Trends, Leafly, local public data
• Paid: Headset.io, MediaJel DemoGraph, New Frontier Data

Use Surveys and Feedback

• Run in-store or post-purchase surveys (launching new product)
• Offer incentives for responses

Leverage First- and Third-Party Data

• First-party: Your own customer data (POS, CRM, website)
• Third-party: Aggregate insights from data providers

Curious about first and third party data?

‍

Where to Find Reliable Cannabis Market Research Reports

• Cannabis Business Times
  ‍A national publication aimed at cultivators, investors, and cannabis businesspeople in general, you’ll find crisply reported industry news, articles on financial and legal resources, and authoritative tips on regulatory approaches and strategies.

• Ganjapreneur
  ‍A publication aimed at activists, businesspeople, and investors, this up-to-the-minute website features reportage on the legal and commercial fronts broken down by state and province, as well as a podcast and a subscription-based business directory.

• Green Entrepreneur
  ‍This spinoff of the long-running Entrepreneur imprint covers the business side of both the medical and adult-use realms. The publication is known for high-quality content and solid international reporting; recently, it spun off into more exploratory realms—“Sex on Psychedelics,” anyone?—which may indicate an appetite for more offbeat content.

• Marijuana Business Daily
  ‍With nearly a decade of publication under its belt, this well-regarded industry publication may be the most like a traditional print newspaper in voice and tone. It’s focused on professionals in all sectors of the legal cannabis economy, with dense state-by-state news coverage, industry statistics and trends, and select international coverage and forecasts.

• Marijuana Venture
  ‍With a self-described focus on professional cannabis growers and retailers, this monthly journal includes a bumper crop of news, tips, and legal advice geared towards those who cultivate cannabis or otherwise participate in its production and processing.

‍

How Do You Analyze Local Demographics and Competition?

To understand how the demographics in your local area relate to your competitors, it will take a combination of digital research, first-hand observation, and some strategic analysis. The question you’re asking, of course, is: Who is my target market? Shed your assumptions; the cannabis-curious population ranges from Generation Z to Baby Boomers.

Search Municipal Records: Start with governmental offices such as the U.S. Census and the Bureau of Labor Statistics, then work your way down to county and municipal databases. Checking your local government’s planning office for pending applications and building works-in-progress Your local library will also be a helpful resource in this case, in large part because librarians are specially trained to direct people like you to sift through mountains of resources and data.

Scope Out Specific Dispensaries: Of course, a big part of your research should focus on existing dispensaries in your area. There are a number of ways to go about this, some of them obvious and others less so. While Googling “dispensary near me” will tell you a lot, there are more instructive ways to look, including:

• Local business directories
  
• Your local Chamber of Commerce
  
• Advertising, both online and off
  
• Cannabis exhibitions and trade fairs
  
• Flyers and marketing literature you’ve received (be sure to sign up for competitors’ marketing materials)
  
• Visit dispensaries and get a feel for what they provide—and what they don’t. This part can actually be a lot of fun! Pretend you’re casing the joint: What do the vibe, the physical layout, the level of service, and the product selection tell you?

‍

Consumer Research: Understanding Your Cannabis Target Audiences.

Shed your assumptions; the cannabis-curious population ranges from Generation Z to Baby Boomers. Look at local demographic trends and see if there are any published surveys about cannabis use.

Cannabis Consumer Segmentation by Use Case

Group consumers by:

• Medical
• Recreational
• Need state (e.g., sleep, anxiety, fitness)

Build Personas

Map audiences by:

• Age
• Income level
• Lifestyle
• Purchase frequency habits

Behavioral Data

Analyze:

• Purchase frequency
• Channel preference (online vs. in-store)
• Loyalty and repeat behavior

Explore everything you want to know about building a cannabis target audience here.

‍

Competitive Analysis for Cannabis Brands and Dispensaries

Often, dispensaries or brand owners create their branding and products based on personal preferences without considering the needs and preferences of their local audiences or how their products solve consumer problems.

Without understanding regional audiences, consumption preferences, and local demographics before developing a brand, you’re building your house on shaky ground. This oversight can lead to poor market performance and an inability to compete effectively with other products.

How do I analyze my competitors in the cannabis industry?

‍Successful canna marketing requires a deep understanding of your local market, competition, and a focus on meeting consumer needs.

When analysing your competitors, make note of the following:

• Brand Identity
  
  • Name, location, business model, and target audience
    
• Website & SEO
  
  • UX design, keyword rankings, blog strategy, site speed, and technical SEO
    
• Social Media Presence
  
  • Platform activity, engagement rates, content themes, and influencer strategy
    
• Advertising & Media Strategy
  
  • Use of Google Ads, programmatic platforms, paid social, and OOH media
    
• Product & Brand Positioning
  
  • Product offerings, price tier, packaging, and unique value proposition
    
• Messaging & Reputation
  
  • Online reviews, brand voice, customer feedback, and community engagement
    
• Opportunities & Threats
  
  • Competitor gaps, innovation areas, compliance weaknesses, and trend adoption

How to Benchmark Your Local Competitors

• Visit stores and compare offerings
• Review pricing, packaging, promotions
• Use SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis. Canva has some great SWOT analysis templates.

Analyze your Findings: Can you identify strengths, weaknesses, and opportunities? What would you do differently, and what ideas would you adopt and modify as your own? Use an analysis tool called SWOT to help you organize your thoughts. Short for: “Strength, Weakness, Opportunity, Threat.” SWOT is a simple, intuitive, and graphic way to sort through all the factors affecting your research.

💡 Pro Tip: Download our Cannabis Competitor Analysis Template Here.

‍

Know Your Market: Trends Shaping the Cannabis Industry in 2025

What consumer trends are shaping cannabis consumption in 2025?

Emerging cannabis trends include:

• Increased demand for low-dose and functional cannabis products (for anxiety relief, focus, or sleep). Be very careful not to make health claims with your products though.
• Sustainable and organic cannabis cultivation practices.
• Tech integration, such as AI-driven cannabis recommendations and geotargeted programmatic mobile app-based purchasing.
• Growth in cannabis tourism and social cannabis consumption lounges.
• The normalization of cannabis as part of overall health and wellness routines

💡 Marketing Tip: Data-driven personalization makes cannabis marketing more effective and compliant by ensuring ads and promotions reach the right audience at the right time. The more relevant your messaging, the higher the conversion rates!

What are the biggest opportunities and gaps in the cannabis market?

Opportunities:

✔ Cannabis tourism & social lounges – Emerging markets in hospitality.
✔ Cannabis-infused beverages – A fast-growing segment targeting health-conscious consumers.
✔ Microdosing & functional cannabis – Products tailored to productivity, relaxation, and wellness.

Gaps:

❌ Lack of premium, high-end branding – Many brands fail to position themselves as luxury or premium.
❌ Senior-friendly cannabis products – The older demographic remains underserved.
❌ Sustainable packaging solutions – Eco-conscious branding is in demand.

How do medical vs. recreational cannabis consumers differ?

Medical cannabis consumers and recreational users have distinct purchasing behaviors and motivations, which should guide how you market to each group.

* Remember, you can’t make claims that your product addresses any medical conditions.

🩺 Medical Cannabis Consumers:

• Prioritize need states, consistency, and safety.
• Require lab-tested, pharmaceutical-grade products with predictable effects.
• Need dosage guidance and often prefer tinctures, capsules, or low-THC options.
• Rely on doctor recommendations and research-backed claims.
• More likely to seek CBD-rich products and balanced THC-to-CBD ratios.

🌿 Recreational Cannabis Consumers:

• Are more brand-loyal and experience-driven.
• Prefer high-THC flower, pre-rolls, and flavored vape cartridges.
• Are influenced by packaging, lifestyle branding, and pop culture references.
• Engage more with social media promotions and influencer marketing.
• Enjoy novelty products like cannabis beverages and gourmet edibles.

‍💡  Pro Tip: ‍DemoGraph Audience Builder
‍Check out our DemoGraph Audience Builder to launch ad campaigns to first and third-party data segments or create lookalike audiences.

‍

State-by-State Legal and Demographic Differences

Each state has unique cannabis laws and local consumer dynamics that directly impact your business strategy.

Understand how:

• State laws affect advertising and product offerings
• Local bans limit dispensary openings (e.g., in parts of CA)
• Demographics shift consumption patterns by region

Know your State’s Cannabis Advertising Regulations.

Cannabis and CBD Market Research Next Steps

Cannabis and CBD market research is essential at every stage of your business lifecycle. Whether you're validating a product idea, sizing up a new market, or planning a pivot, robust research ensures you're making informed, data-backed decisions.

When to Do Research

Conducting market research isn’t just a one-time task—it should guide key business milestones like launching a brand, expanding into new markets, or rebranding for better alignment with your audience.

• Before launch
• During expansion
• When rebranding

Partner With Experts

If you’re short on time or data expertise, partnering with cannabis market research professionals can give you faster access to insights, competitive benchmarks, and campaign-ready audience segments.

MediaJel’s audience builder and media tools help you:

• Uncover demand
• Activate campaigns faster
• Reach the right audience

‍

Let’s Talk About Today’s Cannabis Market Research

Need help launching a data-informed strategy? MediaJel runs campaigns in legal markets across the country and delivers insights that uncover product demand, white space, and competitive edge.

Explore MediaJel’s Cannabis Marketing Services - Contact Us.‍