A new poll reveals that inflation is taking a toll on marijuana users, with two out of three saying they’re spending less on cannabis due to economic pressures. While gas and groceries often dominate inflation discussions, this survey highlights a lesser-known impact: consumers are tightening their budgets on weed.
Majority of Cannabis Users Feeling the Pinch
According to data from the cannabis telehealth platform NuggMD, 66% of marijuana consumers have reduced their spending amid broader economic strain. Only 34% reported that inflation hasn’t affected their cannabis purchases.
The reasons behind the cutbacks aren’t entirely clear. Are cannabis prices rising, or are consumers simply prioritizing other expenses? Likely, it’s a mix of both. As household budgets stretch thin, even discretionary spending like marijuana takes a hit.
Andrew Graham, head of communications at NuggMD, wasn’t surprised by the findings. He pointed out that concerns over healthcare affordability have also surged, with Pew Research data showing a 10-point jump in worried Americans compared to last year. With medical inflation now outpacing overall inflation, access to health and wellness products—including cannabis—is becoming harder.
Cannabis Tax Policy Under Fire
One potential solution, according to Graham, is fixing IRS Code 280E. This outdated tax rule prevents cannabis businesses from taking standard deductions, forcing them to pay tax rates as high as 80%.
“The fastest way to lower costs for consumers is by removing 280E,” Graham said. “If Congress won’t act, another option is requiring insurance companies to cover cannabis for qualifying medical conditions under state-legal programs.”
That’s easier said than done. Under current federal law, marijuana remains a Schedule I drug, meaning insurers aren’t required to cover it. However, there’s hope that rescheduling cannabis to Schedule III could change the game.
Rescheduling Delays and Political Battles
The Biden administration has initiated a process to move marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA). This shift wouldn’t legalize cannabis but would significantly alter tax treatment for cannabis businesses, reducing costs that could trickle down to consumers.
But there’s a catch: the process has hit delays, and some GOP lawmakers are actively working to ensure that 280E stays in place, even if cannabis is reclassified. Bills introduced in both the House and Senate seek to maintain the strict tax policies, potentially keeping marijuana prices higher regardless of the rescheduling outcome.
For now, businesses and consumers alike are left waiting. The longer the process drags on, the longer cannabis users may feel the financial squeeze.
Spending Trends: A Shift from Just Months Ago
The NuggMD poll, conducted between February 27 and March 2, surveyed 518 marijuana consumers, with a margin of error of +/-4.3 percentage points. Compared to a similar poll from November, the results mark a shift in consumer behavior.
Just a few months ago, a majority of respondents said they were spending more on cannabis in 2023 and expected to increase their spending even further in 2025. But inflation has forced many to rethink their budgets.
- 66% of respondents are cutting back on cannabis spending.
- 34% report no change in their purchasing habits.
- The shift contradicts prior expectations of increased spending in 2025.
With economic uncertainty lingering, the cannabis industry could see further changes in spending patterns. Whether that leads to lower prices, tax reforms, or policy shifts remains to be seen.
