The U.S. cannabis industry, valued at a staggering $30 billion, is witnessing a significant shift in consumer demographics. For the first time, young women are consuming more cannabis than their male counterparts, prompting companies to rethink their product lines and marketing strategies. This change is not just a trend; it reflects deeper societal shifts and evolving consumer preferences.
A Shift in Consumption Patterns
Recent data from the U.S. National Institute on Drug Abuse (NIDA) reveals that women aged 19 to 30 have surpassed men in cannabis consumption. NIDA director Nora Volkow attributes this rise to a growing need for relief from stress and anxiety. Interviews with regular female cannabis users indicate that mental health concerns, such as anxiety and depression, are primary reasons for their usage.
- Key Insights:
- Women now account for 55% of users on Jointly, a cannabis product discovery app.
- Female consumers are spending more, with an average purchase size of $91 compared to $89 for male consumers.
Lauren Carpenter, CEO of the cannabis dispensary chain Embarc, emphasizes the importance of adapting to this demographic shift. “Creating new products or rebranding may seem like a sunk cost, but with women making over 80% of purchasing decisions in the U.S., it’s not just smart, it’s necessary,” she stated.
Changes in Retail Strategies
In response to the increasing influence of female consumers, cannabis retailers are adjusting their inventory to focus on products that appeal to women. This includes a range of offerings such as edibles, tinctures, topicals, and beverages.
- Retailer Responses:
- Tilray Brands Inc: With a market cap exceeding $1 billion, Tilray is increasing investments in brands favored by female customers, such as Solei Cannabis. Their lemon iced tea, priced around $6, has been particularly successful, contributing to a 45% market share in the cannabis beverage market.
- High Tide Inc: This Calgary-based company has strategically acquired Queen of Bud, a brand known for products designed for women that feature higher concentrations of THC.
These strategic moves highlight the growing significance of female consumers in the cannabis market and the need for companies to cater to their preferences.
Broader Implications for the Industry
The trend toward female cannabis consumers is reflective of broader societal changes, including the ongoing legalization of cannabis across various U.S. states and increasing social acceptance. Tatiyana Brooks, co-founder of the cannabis data firm GetCannaFacts, notes that women are more likely to purchase from the legal market than men, presenting long-term benefits for businesses.
A generational shift is also evident, as many younger customers are opting for cannabis over traditional substances like alcohol and tobacco. This evolving landscape presents a unique opportunity for cannabis companies to adapt to new consumer preferences.
“Businesses that take the buying power of female cannabis consumers more seriously will stay ahead of the curve among competitors,” Brooks adds, underscoring the importance of recognizing and responding to this demographic shift.
