Consumption Trends and Market Insights of Hemp-Derived THC

Currently, hemp-derived THC products are sweeping across the United States. In the second quarter of 2024, 5.6% of surveyed American adults indicated that they had used Delta-8 THC products, not to mention the various other psychoactive compounds available for purchase.

However, consumers often have difficulty clearly understanding the differences between hemp-derived THC products and other cannabinoid products. The open-ended responses in our CBD survey frequently mention psychoactive cannabinoids and hemp-derived THC brands. Many consumers also reported that they purchased these products from pharmacies and confused them with the hemp products sold in tobacco stores and the regulated cannabis products.

To address a confusion shared by many people, Brightfield Group conducted a survey in the first half of 2024, which primarily targeted the history, usage patterns, and preferences of Hemp-derived THC consumers. The survey clearly defined the differences between CBD, cannabis, and Hemp-derived THC products to enhance the reliability of the data.

Concurrent Use of Cannabinoids.

There is a high degree of overlap in the cannabis industry. In the first half of 2024, 71% of hemp-derived THC consumers reported using cannabis, and 65% of consumers purchased CBD in the past six months. However, despite having used various cannabis products, many consumers still lack understanding of the products they use. For example, only about 56% of respondents were aware that Delta-9 THC is the primary psychoactive compound in cannabis.

Consumer Motivation and Market Dynamics

So, what exactly attracts consumers into the market?

The survey suggests that the primary reason for consumers purchasing hemp-derived THC is its availability, with 36% of respondents selecting this option. The legality of cannabis is also a key factor, as many consumers turn to hemp products in the absence of a state-regulated market. Additionally, other common reasons for using hemp-derived THC products include a preference for taste/smell, the acceptability of public use, and the milder effects offered by some hemp products.

Survey data clearly indicates that hemp-derived THC is emerging as a strong competitor in the existing cannabis market. Eighteen percent of respondents reported that they had switched from using cannabis to using hemp-derived THC. Moreover, nearly 22% of survey participants are newcomers to cannabinoids through hemp-derived THC. This suggests that for some individuals, these products serve as an entry point into the world of cannabinoids.

Consumer Profile of Hemp-derived THC

What does a typical purchaser of THC derived from industrial hemp look like?

From a demographic perspective, consumers of THC derived from hemp tend to be predominantly male, younger, with lower income, and lower levels of education; whereas CBD users are fewer in number, especially those purchasing high-dosage products. Consumers of low-dosage THC gummies often have higher levels of education and income, but still skew towards being younger and male.

The majority of consumers of hemp-derived THC prefer to make purchases in person. While only a fifth of people shop through brand websites, more than half buy from tobacco/vape/cannabis stores, and nearly 40% purchase from specialized hemp retailers.

THC gummies are one of the most popular product forms, with over 60% of respondents indicating that they always use them. Inhalable products such as dry flower, pre-rolled cannabis, and vapes also perform well. The research discovered that about 30% of those surveyed prefer a variety of low-dose gummies, while the proportion for THC beverages has risen to 42%, suggesting that the niche market for "Micro-dosers" is not solely in pursuit of high THC concentrations.

Additionally, 58% of consumers reported that their consumed dosage of THC gummies is 5 milligrams or less, while only 20% of consumers preferred dosages exceeding 10 milligrams per occasion.

Navigating the Ever-Evolving Hemp-derived THC Market

Understanding these consumer trends and preferences is very valuable for businesses involved in the hemp-derived THC industry. Gaining insights into consumer demographics, purchasing habits, and product preferences, as well as many other potential data points, can help in devising a roadmap for growth and innovation, ensuring that businesses can effectively navigate and continue to develop within the ever-changing landscape of the hemp-derived THC industry.

The rise of hemp-derived THC products brings both opportunities and challenges. As the market continues to evolve, understanding consumer trends and preferences is crucial for businesses seeking success. By leveraging data from surveys and social listening, companies can better understand and meet customer needs, driving innovation and growth in this dynamic industry.

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