Lifestyle
Who Buys the Most Weed in America? Gen Z Passes the Baby Boomers for Biggest Cannabis Customers!
Gen Z just became the $1 cannabis consumer group in the world!
While a larger percentage of Generation Z aren’t old enough to purchase cannabis, the small percentage can have proven to be huge consumers. And now with 420 becoming one of the biggest ceremonies across the United States, cannabis consumption and sales have increased with Gen Z’s huge consumers.
Over the years, Gen Z consumption has increased especially as cannabis legalization across the United States continues to gain ground. Over the last 5 years, Gen Z cannabis consumption has increased significantly with data from Headset, an analytics company backing up the claims.
Gen Z Cannabis Consumption in 2021
According to data provided by Headset, an analytics company, the first half of 2021 saw Gen Z overtake Baby Boomers in terms of overall marijuana sales for the very first time across four legal states. Looking at the current trend, Cooper Ashley, a senior analyst at Headset affirmed that Gen Z in the next 10 to 15 years will become the largest generation in terms of overall cannabis sales.
Only a small percentage of Gen Z, roughly 9 to 24 years old, are eligible to legally buy cannabis. Even that, the age group now accounts for 12.7% of cannabis sales in Colorado, California, Washington, and Nevada. This data collected in the first of 2021 shows an increase of 4% compared to 2020.
In the same year, Baby boomers accounted for 12.1% of the overall sale which was a decrease from 13.9% in 2021. This means Gen Z for the very first time surpassed Baby Boomers in terms of overall cannabis sales. Even the almighty millennials lost market shares to Gen Z as they account for 51.8% of cannabis sales in 2021. This represents a decrease of 0.2% compared to 2020.
Now, as it currently stands, store sales of cannabis have increased by 148% in 2022 according to the data provided by Headset. And what age group is buying all the cannabis products? Gen Z!, who is now legally old enough to buy cannabis.
A shifting demographic creates a fresh marketplace
As the cannabis industry continues to evolve and grow, so does its target market, from one generation to the next. As Gen Z comes of age, they are rapidly accepting cannabis, making new trends while the industry continues to change to meet demands.To this end, Headset decided to look into Gen Z and how they purchased cannabis on 420 this year. The analytic company looked into the purchases from basket sizes to product preferences. According to the Headset report, Gen Z cannabis consumers are the most involved, expanding their average daily spending on cannabis purchases.
While Gen Z Women purchase 25% more cannabis products, Gen Z men purchase 35% more compared to the previous week.
Gen Z’s Product Preference
On 420, beverages had the highest increase in sales, accounting for a 5 times increase compared to a usual day. Pre-rolls and edibles also showed great numbers on the said day. If this data directly translates to market direction, then vape pens are getting outdated.
Or it could just translate to Gen Z customers who were looking to buy cannabis supplies for the celebratory parties instead of their usual supply. Nonetheless, this data available could help retailers draw up the group as repeat customers. Maybe now is the right time to stock up on single-served items and more edibles as Gen Z continues to age into cannabis use for recreational purposes.
Total Cannabis sales among Gen Z
Total cannabis sales among Gen Z surged by 127% with a total of $370 million in 2018 to $850 million in 2020. When compared to that of millennials, that is about three times more than cannabis sales among millennials. According to the data provided, millennials recorded a surge in cannabis sales of 46% seeing an increase from $3 billion in 2019 to over $4 billion in 2020.
Ashley credited Gen Z’s remarkable growth to the fact that not all in the age group are eligible to purchase cannabis. Therefore, as more young adults in Gen Z come of age (21 years), sales will continue to increase. Ashley affirmed that with more Gen Z coming of age every single day, legal cannabis sales for the age group will continue to increase. With this trend, Gen Z will eventually become one of the most vital demographic groups in the industry.
The report also indicated that the increase in cannabis sales by age group also seems to be declining with older generations. Sales of cannabis among Gen X increased by 29% from $1.6 billion to 2 billion from 2019 to 2020. On the other hand, sales of cannabis among Baby boomers surged by 5% increasing from $970 million to about $1 billion from 2019 to 2020.
The Silent Generation (aged 75 to 95 years of age) was the only group that witnessed a massive decline in cannabis sales. The age group witnesses a decline of 18% from $50 million to about $40 million. This decline in sales among older generations could be a result of several factors, especially during the Covid pandemic. During this period, lots of consumers stayed at home to curb viral exposure.
Consumption Habits of Gen Z
The Headset report indicated that cannabis may have become an inherent culture for Gen Z compared to older generations who may see cannabis as a splurge. Meanwhile, as cannabis sales among Gen Z increase, interest in alcohol among young adults is declining.
It is said that this consumption habit among Gen Z could be a result of the impact of their distinct qualities. One thing about Gen Z is that they were born in an era when cannabis legalization took off. Medical use of cannabis was legalized in California in 1996. Oregon, Alaska, and Washington took the same step in 1998. Today, 18 states have legalized cannabis for recreational use, and 36 legalized states for medical cannabis use.
With so much cannabis legalization happening through Gen Z’s era, cannabis perception has changed and the generation seems to be more accepting of it. Now Gen Z sees cannabis as equal to alcohol and just another option of an intoxicating substance.
Conclusion
Certainly, it may be too early to make conclusions on Gen Z’s product preferences and cannabis sales. However, if the present growth trend proves to be a solid pointer towards the market direction, Gen Z will be a vital consumer section for the cannabis industry shortly.