Premium cannabis is no longer a niche; it’s steadily becoming the default choice across mature legal markets. Several forces are converging: consumers equate “quality” with safety, consistency, and stronger effects; brands are getting better at signaling craftsmanship; and retailers rely on higher-margin tiers to offset price compression in value segments. Even as some markets flatten, analysts still forecast overall U.S. growth, keeping pressure on brands to differentiate—often by moving upmarket.
Category mix tells the clearest story. Pre-rolls—especially connoisseur or infused formats that bundle potency, flavor, and convenience—have become the industry’s fastest-growing segment. In the first half of 2024, infused pre-rolls captured roughly 44% of U.S. pre-roll sales in tracked markets, a striking sign of premium preferences at the point of sale. California shows the same pattern: despite a flat overall market, premiumized pre-rolls are reshaping baskets. Trade and equipment suppliers describe an explicit “premiumization” trend centered on connoisseur SKUs.
Who buys premium? Two overlapping groups stand out. First, affluent, experience-seeking shoppers—often cross-over fans of craft beverages—who prioritize terpene complexity, provenance, and limited drops. Second, younger heavy users (Gen Z and millennials) who drive category growth in new and maturing markets and are quick to try novel, premium formats. Consumer trackers have repeatedly shown that these younger cohorts account for outsized share of growth, with participation rising rapidly as legalization expands. Brightfield and BDSA consumer panels underline that Gen Z and Millennials are leading the charge in both incidence and frequency.
Price willingness also matters—and it’s not uniform. Evidence from consumer research on infused beverages found an average 12.5% higher willingness to pay for THC beverages versus CBD, with younger consumers paying the largest premium. While beverages are just one category, the underlying psychology generalizes: perceived pharmacological value (stronger or “cleaner” effect), flavor sophistication, and brand credibility give shoppers permission to trade up. Those cues—total cannabinoids, terpene disclosure, solventless inputs, and third-party lab credentials—reduce the risk of a disappointing purchase and steer buyers toward premium shelf space. Retailers report that these products defend margins and lift baskets even when average item prices slide elsewhere.
In effect, “quality” is a decision shortcut. Minimalist packaging, strain pedigrees, small-batch messaging, collaborations, and verified testing create trust, which converts to higher share for premium flower, infused pre-rolls, solventless concentrates, and terpene-forward edibles and drinks. With overall sales expected to keep expanding in 2024 and beyond—albeit unevenly by state—the center of gravity is drifting toward products that can prove craftsmanship, consistency, and provenance.
For medical-leaning consumers and professionals, “clean” inputs and repeatable effects justify the spend; for younger recreational shoppers, potency, novelty, and social cachet do the same. Premium is becoming the norm not because everyone can afford luxury, but because clear, credible quality signals now shape how cannabis gets chosen—and why shoppers come back.
Learn More: Cultivation Matters: How Growing Methods Influence Cannabis Quality