As legal cannabis becomes increasingly accessible and popular in North America, more brands and retailers are trying to gain precise insights into who their customers actually are. In 2021, retail data indicated millennial male consumers were still driving the bulk of sales in key markets. However, the emergence of new brands, markets, and other global factors warrants an updated inquiry into consumer trends across the United States and Canada. Headset’s findings from the past two years identified two emerging demographics primed to reshape the consumer experience within the cannabis space: women and Generation Z.
Cannabis consumption by gender
Since 2020, there have been noticeable shifts among male and female consumers in the cannabis marketplace. Purchasing data from the first quarter of 2021 indicated male consumers were responsible for an overwhelming majority of sales across key markets such as California, Colorado, Nevada, and Washington. However, sales among female consumers rose by more than 55 percent from the start of 2020 to the end of 2021. By comparison, sales among male customers rose by less than 50 percent during the same period. Further analysis suggests female patrons of every age group except Gen Z purchase cannabis products in larger basket sizes than their male counterparts.
Changing consumer habits also have provided more insight into the preferences of female customers. Most notably, data shows female patrons prefer edible, sublingual, tincture, and topical products over beverages and capsules. Meanwhile, male consumers have a proclivity for concentrates, flower products, and vapor pens.
It’s important to note these product preferences tend to change across different generations. For instance, female Gen Z consumers appear to be outliers, preferring concentrates to edibles. Regardless of gender demographics, it’s becoming increasingly essential to monitor Gen Z’s preferences as their market share continues to grow.
Brands and retailers can leverage these recent findings to tailor their product offerings, in-store promotions, and inventory to drive growth—especially if they seek relatively untapped consumer segments. The recent upswing in demand among young female cannabis customers is a leading indicator of how cannabis experiences will evolve in the coming years.
Cannabis consumption by age group
Gen Z will compose a larger portion of cannabis consumer sales as they turn twenty-one. From the first quarter of 2020 to the final quarter of 2021, Gen Z’s market share increased by more than 80 percent. In fact, the group is the only age bracket with new customers entering the available market daily. While millennials remain the most prominent customer age group, contributing to roughly half of all sales, the foothold of each of the three older age groups has receded fairly evenly.
Not only is Gen Z growing at a faster pace than older generations, but they also have noticeably distinct preferences. Unlike Gen X, millennials, and baby boomers, Gen Z prefers concentrates and vapor pens over edibles and flower. Meanwhile, the products that appear to unite all generations are pre-rolls, the convenience and familiarity of which have a universal appeal to consumers of all ages and genders.
What does this mean for brands?
Granted, the branding of each of these form factors also plays a significant role in how different demographic groups engage with each product. In California, the Headset team analyzed the consumer breakdown of two prominent edibles brands, Froot and PLUS. Less than 40 percent of California edibles sales were driven by millennials, but 40.4 percent of Froot edibles sales were from this age group, resulting in a slight over-index to millennials for the company. With this information, Froot, a bright and playful value-priced brand, can market itself to millennials and new Gen Z consumers. By contrast, 30.2 percent of California edibles sales were driven by Gen X, but 34.7 percent of PLUS edibles sales came from this age group. The company’s understated branding and experience-based product line clearly resonated with older consumers and appealed to their specific preferences.
Understanding nuances in consumer behavior is vital to building successful brands and retail operations in today’s industry. As trends continue to change rapidly, it is more important than ever to monitor the needs and desires of consumers of all backgrounds.
Cy Scott is co-founder and chief executive officer at Headset Inc., which turns retail data into real-time market insights. Previously, he co-founded cannabis information network Leafly, obtained Kelly Blue Book’s first patent, and assisted TEN: The Enthusiast network in transitioning publications including MotorTrend and Automobile from print to digital.
[…] and Jarin kept the region’s dominant demographic in mind: older generations who might not be too familiar with the modern cannabis industry but definitely are well-versed in […]
[…] results available for THC, CBD, CBG, and water activity. The spectrometer is especially useful as a data aggregator, allowing users to review past scans and prior data through the GemmaCert dashboard to maintain […]
[…] also have seen a major shift in the modern cannabis consumer. Between pandemic precautions and the rise of the “buy now, pick up later” mentality, online […]
[…] and surveys can be invaluable for delving beyond mere demographics and uncovering the psychographic factors that drive consumer behavior. The methodologies provide a platform for consumers to articulate their thoughts, feelings, and […]
[…] place online, up from less than 20 percent pre-pandemic. This represents a considerable shakeup in how consumers find and buy cannabis. Almost all dispensaries now have an online menu tethered to their point-of-sale system that […]
[…] any other marketing efforts take place, it’s important to first define your target demographic. To whom are you marketing? Define your ideal customer. Who do you picture walking through your […]
[…] efforts around marketing, product selection, discounts, promotions, and ultimately, figuring out what drives dispensary sales in a tourist-friendly metropolis. In 2022, Denver took in more than $9.4 billion from its 36 […]
[…] Enter analytics, a term tossed around in contexts ranging from professional sports to microeconomics. For a dispensary, analytics software demystifies the raw data your systems collect and presents it in an easily understood way using familiar visual representations like charts and graphs. When applied correctly, analytics help take much of the guesswork out of dispensary operations, enabling owners and managers to track the results of promotional campaigns and discount offers and use those results to inform future decisions. […]
[…] all other things retail, the key to success is to know the customer and nail the strategies for presenting irresistible deals at the right time and in the right place. We checked in with some […]
[…] designing the space, she was cognizant of the demographic breadth of Amplify’s patient base, noting customers span all ages, abilities, ethnicities, and genders. “We wanted there to be a […]
[…] recommends asking about the demographics of event attendees to ensure they align with your target audience. Testimonials from past sponsors […]
[…] the biggest pitfalls in cannabis marketing is believing the product will sell itself, or that the prime target demographic is everyone who smokes flower. These are big mistakes if you want to develop a business model that […]
[…] the biggest pitfalls in cannabis marketing is believing the product will sell itself, or that the prime target demographic is everyone who smokes flower. These are big mistakes if you want to develop a business model that […]
[…] be tempted to feel a little guilty, but don’t. Those tasty morsels are scientifically proven to make you more likely to buy, thanks to a psychological principle known as […]
[…] owners: Data matters, and sometimes your gut feeling isn’t reflective of reality. You need to know your demographics and how they interact with each other. If you don’t have time to look at the data and come up […]
[…] A larger variety of products are available in the adult-use market, where brands are trying to appeal to a wider range of people in a variety of demographics. […]
[…] Who’s your target audience? If it’s “everyone who smokes weed,” you’ve stumbled into the same pitfall as many other cannabis marketers. […]
[…] and price dominate the decision-making process at retail counters in regulated markets, but the next generation of consumers is moving away from smoking as the primary method of consumption in search of a wider variety of […]
[…] brands face when implementing sustainable packaging include cost, availability, and consumer behavior. Sustainable materials can be more expensive than traditional materials, and some markets may […]