What Will the Business of Cannabis in New York Look Like Under Mayor Mamdani?

How Functional THC is Shaping the Future of the Cannabis Industry

Update Redefining Cannabis Value with Functional THC For years, the cannabis industry has revolved around a singular focus on THC percentage, leading to a competitive landscape driven by high potency. However, a new movement is emerging—functional THC—which promises to change how products are perceived and valued. This shift is rooted in changing consumer preferences as they move away from merely seeking a high towards desiring specific effects that promote clarity, focus, and calm. A Cultural Shift Away from Potency Encouraged by trends in wellness and microdosing, the functional THC movement is advocating for a more nuanced understanding of cannabis effects. "Demand for effect-driven products has continued to rise," claims Chris Emerson, CEO of LEVEL, one of the pioneering brands in this space. As cannabis consumers now prioritize how they wish to feel rather than chasing the highest potency, the focus has shifted to developing precise cannabinoid ratios that cater to specific needs and experiences. Breaking the Potency Addiction Data from cannabis market analytics illustrates a slow but sure departure from the traditional notion of potency as the primary indicator of quality. According to BDSA, product categories such as cannabis beverages and low-dose edibles—with controllable effects and predictable onset—are among the industries experiencing fast growth. This pattern indicates a clear consumer preference for reliability over raw potency, where buyers favor products that promote consistent and enjoyable experiences. Formulating for Functionality Brands are now approaching cannabis formulation with methodologies aligned with pharmaceutical design, moving away from the traditional art of flavor creation. For example, LEVEL incorporates empirical feedback and machine learning to establish optimal THC levels for different desired effects. By tailoring their offerings, such as gaming tablets, brands aim to create repeatable experiences for consumers. Retailers Rethink Merchandising Strategies Retail environments are adapting to this new mindset; venues like Alta NYC categorize products by desired effect instead of the previous strain or THC level metrics. This approach not only simplifies the shopping experience but also demonstrates that well-informed consumers are making selections based on mood and intended effects rather than sheer potency. Vanessa Yee-Chan, Alta’s founder, notes that this shift has driven loyal consumer engagement and consistent sales. The Path Toward Normalization Despite the buzz and excitement around functional THC, the industry still faces challenges in establishing standards and ensuring consistent product quality across different brands. A lack of scientific evidence validating the efficacy of various cannabinoid ratios can deter consumers concerned about reliability. "Consistency and education will separate real progress from noise in a crowded marketplace," Emerson emphasizes. The potential for functional THC is immense, as it could help cannabis appeal to a broader audience, reaching individuals who previously doubted its benefits. As the market evolves, solutions that function like everyday alternatives to over-the-counter medications could bolster wider acceptance and further drive legalization efforts. Conclusion: What Are the Implications for the Future? The move towards functional THC signals an essential evolution within the cannabis market, shifting the focus from potency to the quality of experience. As consumers place greater importance on how cannabis products affect them personally, companies must ensure they are prepared to deliver safe, reliable, and enjoyable products. With numerous challenges ahead, the industry stands on the brink of a crucial transformation. Brands must adapt to this emerging landscape to thrive, paving the way for future innovations in how cannabis products are perceived and consumed.