Can “Functional THC” Move Cannabis Beyond the Potency Race?

THC Potency No Longer Reigns as ‘Functional Cannabis’ Takes Center Stage

A Years Long Potency Arms Race Faces Its First Real Challenger

For years, THC percentage has dictated price, perception and bragging rights across the cannabis supply chain from cultivation and testing labs to dispensary shelves. But as operators try to break the cycle of high-THC dependency and consumers seek clarity, focus and calm over couch-lock intensity, “functional THC” is emerging as the industry’s next defining metric.

Cannabis advocates have long warned that THC percentage is an unreliable indicator of quality or experience. Now, supported by wellness culture, microdosing trends and a sober-curious generation, functional THC is pushing manufacturers to design products defined by precise cannabinoid ratios, intentional effects and consistent outcomes.

Brands such as LEVEL in California and Eaton Botanicals in New York are shaping a new language for what “functional” means in cannabis.

“Demand for effect-driven products has continued to rise,” said LEVEL CEO Chris Emerson, whose company markets activity-specific tablet formulations. “The market is moving away from generic ‘this will relax you’ marketing toward formulations that deliver distinct, repeatable experiences.”

Consumers Are Buying for How They Want to Feel Not How High They Can Get

Average THC levels in U.S. cannabis flower have steadily climbed, reflecting years of potency-driven consumer expectations. But that mindset is shifting.

According to BDSA, cannabis beverages and low-dose edibles known for predictable onset and reliably mild effects are among the fastest-growing categories in dispensaries.

“Consumers want reliability,” said Eaton Botanicals co-founder Dan Dolgin. “Once they find something that works, they stick with it. They’re not chasing potency—they’re chasing consistency.”

Retailers such as Alta NYC are now merchandising by effect rather than strain or THC level, meeting consumers where they are: looking for Rest, Chill, Relief, Focus or Vibe.

How Brands Are Engineering Products for Function, Not Potency

To break free from the potency race, manufacturers are approaching formulation with a pharma-like precision.

“Functional THC isn’t a single molecule or a single dose,” Emerson said. “It’s the correct THC dose in a trusted matrix for the intended moment.”

LEVEL combines consumer feedback, peer-reviewed research and machine learning to refine onset, peak and duration. Eaton Botanicals is pairing cannabinoids with adaptogens and botanicals through partnerships with functional-medicine experts at Indigo Wellness.

Each product undergoes multiple iterations to ensure flavor, dosage integrity and effect reliability—backed by education efforts such as budtender training and farm visits.

“Education is the most important thing we can do,” Dolgin said.

Retailers Embrace Mood-Based Shopping as Effect-Driven SKUs Rise

The shift is increasingly visible on retail shelves.

Alta NYC founder Vanessa Yee-Chan reorganized her entire dispensary by desired effect after struggling as a new cannabis consumer herself.

“At Alta, we wanted to make it simpler and more intentional,” she said.

“Vibe,” the store’s social-energy category, brings in the most traffic and repeat visits, while “Rest” and “Chill” offerings drive the highest return-purchase rates. Effect-based SKUs now outperform strain-based sales because customers value predictability.

“That clarity builds trust, loyalty and higher overall spend,” Yee-Chan noted.

Functional THC Still Faces a Scientific Gap

Despite growing momentum, scientific research remains a bottleneck. Regulations limit standardized dosing studies, leaving brands responsible for building their own evidence base.

A 2019 review found limited data on predictable cannabis effects across formats a gap that places pressure on brands to validate claims and on retailers to sell responsibly.

As a result, data driven formulation and transparent labeling are emerging as competitive advantages.

Making Cannabis More Like Tylenol Than Alcohol

The future of functional cannabis hinges on reliable performance, Emerson said.

“Discipline is key under-promise, over-deliver and design products that are easy to titrate.”

For manufacturers, that means rigorous R&D, clear ratios and transparent effect data. For retailers, it means training teams to sell by function.

Dolgin sees functionality as a gateway to broader acceptance.

“Functional cannabis reaches people who never thought it was for them,” he said. “When it becomes a safe, everyday alternative to sleep aids or painkillers, that brings wider acceptance and legalization closer.”

As cannabis continues its march toward normalization, functional THC may be the tool that finally shifts the conversation from “How strong is it?” to “How does it make you feel?”