With grocery bills rising and rent hitting new highs, it’s no surprise that cannabis consumers are feeling the financial pinch. A new poll shows that two out of three marijuana users are spending less on cannabis because of inflation. This shift in behavior is changing the landscape for both consumers and cannabis businesses alike. In this article, we explore what the numbers say, why this is happening, and how the cannabis industry can respond.
Inflation Hits the Cannabis Community
Inflation is affecting nearly everything in our daily lives—from gas and groceries to housing and health care. Now, cannabis is part of that conversation.
According to a recent survey from the cannabis telehealth platform NuggMD, 66% of cannabis consumers say they’ve cut back on cannabis purchases because of rising prices in other areas of their lives. That means 2 out of every 3 cannabis users are trying to stretch their dollar a little further—and cannabis isn’t making the cut like it used to.
Only 34% of respondents said they weren’t changing their cannabis spending habits at all, which suggests that economic pressure is having a wide-reaching impact on everyday cannabis users.
Why Are People Buying Less Cannabis?
There are several reasons why inflation is leading people to cut back on cannabis spending:
Rising Cost of Living
Inflation doesn’t just mean prices are going up—it means wages aren’t keeping up. More people are focused on paying for essentials like food, rent, and bills. In tough times, cannabis can start to feel like a luxury instead of a wellness product or tool for relief.
Higher Prices for Products
Even though cannabis prices in some markets have gone down, other areas have seen price hikes due to supply chain issues, taxes, and regulatory costs. These rising expenses make it harder for businesses to keep prices low—and that cost often gets passed on to the consumer.
Federal Law & Tax Code 280E
Because cannabis is still federally illegal, businesses can’t deduct common operating expenses on their taxes. This law—known as IRS Code 280E—results in some cannabis businesses paying up to 80% in taxes. That drives up costs, which again, gets passed down to the customer.
Not Everyone Is Spending Less
Interestingly, not all polls agree. In late 2023, a separate survey showed that most cannabis consumers said they were actually spending more than the previous year—with many saying they planned to spend even more in 2025.
So what gives?
It could be a matter of location, access, and income. For example:
• People in legal markets with lots of competition may be getting better prices.
• Medical cannabis users might prioritize spending on cannabis over other goods.
• High earners may not be impacted by inflation in the same way as lower-income users.
These different conditions create a split in consumer behavior—some are buying more, some are cutting back, but everyone is adjusting to this new economic reality.
What This Means for Cannabis Businesses
For cannabis brands, dispensaries, and growers, this is a wake-up call.
If people are buying less, businesses need to work harder to retain and support their customers. Here’s how they can do that:
Offer Affordable Options
Introduce lower-priced product lines, pre-ground flower, or bulk discounts to help customers who are feeling the pinch.
Run Smart Promotions
Sales, first-time discounts, loyalty programs, and referral rewards help keep foot traffic high and customers coming back.
Educate Your Customers
Help people understand value per dose, not just price per gram. A more potent or longer-lasting product may offer more bang for the buck—even if it costs more up front.
Advocate for Policy Change
Business owners and consumers alike should support reforming IRS Code 280E, removing federal restrictions, and making the legal market more accessible and affordable for all.
What Consumers Can Do
Cannabis consumers also have a few tools at their disposal:
• Buy in bulk when possible to save money long-term.
• Ask about deals—many dispensaries have daily specials or discounts for veterans, seniors, and medical patients.
• Consider different product types—edibles or tinctures may provide longer relief per dose than smoking, even if the price per unit seems higher.
If cannabis plays a role in your health, stress management, or lifestyle, you don’t have to go without. You just need to shop smarter, and support businesses that care about access and affordability.
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