Functional THC: Shifting the Cannabis Industry Focus from Potency to Purpose

For years, the cannabis industry has been dominated by the pursuit of high THC percentages, which have dictated product pricing and consumer perception. However, a shift is occurring as both producers and consumers begin to prioritize 'functional THC' over sheer potency. This new focus aims to deliver clarity, focus, and calm rather than the traditional couch-lock high associated with high-THC products. As wellness culture and the popularity of microdosing gain traction, the cannabis industry is seeing a growing demand for products that offer specific, reliable effects

Cannabis advocates have long argued that THC percentage is not a reliable indicator of product quality or effects. Despite these efforts, consumers have largely remained focused on potency. However, the rise of a 'sober-curious' generation and an increasing interest in wellness are encouraging a move towards products with precise cannabinoid ratios. Brands such as LEVEL in California and Eaton Botanicals in New York are at the forefront of this movement, creating products that are designed for specific activities and effects, such as gaming or relaxation

Chris Emerson, CEO of LEVEL, explains that the market is shifting away from generic marketing towards formulations that provide distinct, repeatable experiences. "Demand for effect-driven products has continued to rise," Emerson notes, highlighting the industry's evolution towards more sophisticated product offerings. Similarly, Dan Dolgin, co-founder of Eaton Botanicals, observes that customers are increasingly seeking reliability over potency. "They’re not chasing potency, they’re chasing reliability," Dolgin says, emphasizing the importance of consistent, predictable effects

This movement towards functional THC reflects a maturing cannabis market, where consumers are reevaluating potency as the sole benchmark for quality. Data shows that average THC levels in U.S. cannabis have been on the rise, but this is beginning to change as consumers seek more controlled experiences. Products like cannabis beverages and low-dose edibles, which offer predictable onset and controllable effects, are among the fastest-growing categories at cannabis retailers. This trend indicates a desire for the same kind of dependable functionality that consumers expect from products like caffeine or dietary supplements

Retailers are adapting to this shift by rethinking their merchandising strategies. For example, Alta NYC in Manhattan organizes products by desired effect rather than strain or THC level, making it easier for consumers to find products that meet their needs. Founder Vanessa Yee-Chan notes that this approach not only simplifies the shopping experience but also boosts customer loyalty and spending. Effect-based products, she explains, outperform strain-based sales as customers value the consistency and reliability they offer

Despite the growing interest in functional THC, challenges remain in standardizing and educating consumers about these products. Fragmented regulations and limited research on standardized dosing present significant hurdles. Brands are under pressure to deliver on their promises, and retailers must responsibly market these products. Evidence-based labeling and formulation data are becoming crucial competitive differentiators in the industry. As Chris Emerson points out, the future of functional cannabis will depend on rigorous research and development to ensure products deliver as advertised

Looking ahead, the potential for functional THC to transform the cannabis industry is significant. By focusing on functionality, cannabis can appeal to a broader audience, including those who have never considered using it before. Dan Dolgin believes that functional cannabis can become a safe, everyday alternative to traditional sleep aids or painkillers, which could lead to wider acceptance and further legalization. As the industry continues to evolve, consistency and education will be key to navigating the crowded marketplace and achieving long-term success