October 22, 2026
Dispensary capsule sales fell 22.3% in the twelve months ending September 2026, to $111 million, according to Headset's point-of-sale data across 16 states. Topicals fell 13.1% to $85 million and tinctures fell 7.0% to $119 million. Total cannabis sales rose 1.5% to $24.6 billion over the same period.
We covered these numbers in August, when the June figures showed the same three formats at the bottom of the board. Since then, the capsule and topical declines have eased slightly and the tincture decline has deepened. Two things are new: better data on who buys these products, and a federal rule taking effect December 11 that could change where those shoppers go.
Capsules, tinctures, and topicals lean on older customers more than anything else in the store. Headset's demographic data shows Baby Boomers put 0.9% of their cannabis spending into tinctures and 0.7% into capsules. Gen Z puts in 0.2% and 0.1%.
Boomers and Gen X together account for 57% of capsule spend, and Gen Z for 8%. Boomers are the largest cohort in topicals at 33%, and women account for 51% of topical dollars, the only category where women outspend men. In tinctures, Boomers account for more than a quarter of spend and women for 43%.
Meanwhile, the overall shopper base is getting younger. Gen Z's share of U.S. cannabis spending rose from 18.4% in September 2024 to 21.7% in September 2026. The Boomer share fell from 13.1% to 12.4% over the same period. A store whose customers are shifting toward vape-first buyers in their twenties has less reason to give shelf space to formats bought mostly by customers in their sixties and seventies.
In most cannabis categories, falling prices explain falling dollars. Capsules and topicals are the exception. Headset says average capsule prices rose about 4% over the past year, to about $26 an item, and topical prices also rose about 4%, to about $31, the highest average item price of any category. Tincture prices eased about 3%.
When the average item price rises and category dollars fall by double digits, the difference is units. Fewer capsules and topicals are crossing the counter, and discounting isn't what's driving it.
On December 11, federal hemp law changes. Finished hemp products will be limited to 0.4 milligrams of total THC per container, with "container" defined as the innermost vessel in direct contact with the product. Products with cannabinoids the plant can't naturally produce lose hemp status earlier, on November 12.
Most coverage of the cap has been about THC gummies and drinks. But many full-spectrum CBD oils and capsules contain trace THC, and a multi-serving bottle can go over 0.4 mg per container. Industry stakeholders estimated that 90% or more of non-intoxicating full-spectrum CBD products would fall outside the new definition. NC Newsline reported on October 12 that CBD products "could also exceed the new limit." How the cap applies to a given product depends on its formulation, and the FDA guidance that would clarify it had not been published as of September.
Brightfield Group has said the change would "significantly restrict many non-intoxicating CBD goods" and that some spending could move to "regulated alcohol and cannabis channels."
The federal government is also running its own CBD channel. Since April 1, CMS's Substance Access Beneficiary Engagement Incentive lets participants in certain Medicare innovation models furnish up to $500 a year in hemp products per eligible beneficiary. Products must be federally legal hemp, non-inhalable, third-party tested, and no more than 3 mg of THC per serving for oral products.
Physicians furnish the products directly. CMS bars participants from telling beneficiaries to buy retail products and submit receipts, and Medicare doesn't pay for the products. CMS also says it will adjust its definitions if federal hemp limits change. For dispensaries, the pilot is one more place older patients can get CBD without visiting a store.
Wellness brands are pitching a buyer who sees a shrinking category and a younger shopper base. The sales pitch has to be about the specific customers these products bring in: older shoppers and, for topicals, women, two groups that spend less at dispensaries than the stores' core customers do. Our read is that a store dropping its last capsule SKU risks losing those customers' whole basket, not just one item.
Watch the first quarter. If the December cap pushes full-spectrum CBD out of general retail, some of those shoppers may look for similar products in licensed stores. Nobody has data on that yet; January and February sell-through will be the first test. In the meantime, a store that has cut its wellness assortment to one brand will have little to offer them.
Packaging vendors should expect smaller orders for dropper bottles, capsule jars, and topical tubes from cannabis manufacturers while these categories keep shrinking.
This is market analysis, not legal advice. Hemp and CBD businesses should confirm how the new definition applies to their products with counsel.
Are cannabis capsule and topical sales declining? Yes. In the twelve months ending September 2026, dispensary capsule sales fell 22.3% to $111 million and topicals fell 13.1% to $85 million, according to Headset. Tinctures fell 7.0%.
Who buys cannabis topicals? Baby Boomers are the largest cohort at 33% of topical spend, and women account for 51% of dollars, the only cannabis category where women outspend men, per Headset.
Does the December hemp cap affect CBD? It can. The 0.4 mg total-THC-per-container limit applies to finished hemp products, and many full-spectrum CBD products contain trace THC. Whether a specific product complies depends on its formulation.
If CBD shoppers start coming to dispensaries after December, they will go to the stores that still stock capsules, tinctures, and topicals. See verified, owner-level dispensary contacts, refreshed weekly. Free preview at holdenleads.com.
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