In a groundbreaking shift within the $30 billion U.S. cannabis industry, young women are now consuming cannabis at higher rates than men. This trend is prompting companies to rethink their strategies, focusing on products that resonate with this emerging demographic. As the market evolves, cannabis retailers are adapting to meet the needs of female consumers, who are increasingly driving purchasing decisions.
A New Era of Consumption
Recent data reveals that women now account for 55% of the user base on Jointly, a cannabis product discovery app. This demographic shift is significant, as women are not only consuming more cannabis but are also spending more on their purchases. For instance, in September, female buyers at Housing Works Cannabis Co., New York’s first legal dispensary, had an average purchase size of $91, surpassing the $89 average for male buyers.
- Key Insights:
- Women make over 80% of purchasing decisions in the U.S. cannabis market.
- The rise in female consumption is partly attributed to mental health concerns, such as anxiety and depression.
- Ongoing legalization and social acceptance of cannabis are contributing factors to this trend.
Lauren Carpenter, CEO of cannabis dispensary chain Embarc, emphasizes the necessity of adapting to this shift. “Creating new products or rebranding may seem like a sunk cost, but it’s not just smart, it’s necessary,” she stated. Companies are now focusing on edibles, tinctures, topicals, and beverages that appeal to women, anticipating that these investments will pay off in the long run.
The Impact of Mental Health Awareness
The increasing consumption of cannabis among young women can be linked to a growing awareness of mental health issues. According to Nora Volkow, director of the U.S. National Institute on Drug Abuse (NIDA), many women cite stress and anxiety as primary reasons for their cannabis use. While there is limited evidence supporting cannabis as a treatment for these conditions, the perception of its benefits is influencing consumption patterns.
- Consumer Insights:
- A majority of regular female cannabis consumers report using it for mental health reasons.
- The legal market is more appealing to women, who are more likely to purchase from licensed dispensaries than men.
This shift in consumption is not just a trend; it reflects a broader generational change. Many younger consumers, particularly Gen Z, are opting for cannabis over traditional substances like alcohol and tobacco. This evolving landscape presents a unique opportunity for cannabis companies to cater to a demographic that values wellness and self-care.
Companies Respond to the Shift
Major cannabis retailers are taking notice of this demographic shift and are adjusting their product offerings accordingly. For example, Tilray, a retailer with a market cap exceeding $1 billion, is increasing investments in brands favored by female consumers, such as Solei Cannabis. Their popular lemon iced tea, priced around $6, has resonated well with women.
Similarly, High Tide, a Calgary-based company, has credited its acquisition of Queen of Bud to the brand’s focus on products designed for women, featuring higher concentrations of THC. These strategic moves highlight the importance of understanding and catering to the preferences of female consumers in the cannabis market.
Looking Ahead: The Future of Cannabis Consumption
As the cannabis industry continues to evolve, businesses that prioritize the buying power of female consumers are likely to stay ahead of the competition. Tatiyana Brooks, co-founder of cannabis data firm GetCannaFacts, notes that companies that take this demographic seriously will benefit in the long run.
The ongoing shift in cannabis consumption patterns among young women is not just a fleeting trend; it represents a significant change in the industry. As more women embrace cannabis for various reasons, from wellness to recreation, the market will need to adapt to meet their needs. The future of cannabis consumption is here, and it is being shaped by a new generation of empowered women.
