Headset: Gen Z, Vape Pens Are Rising Forces In The Industry
April 25, 2023The main force shaping changes in demographic and consumption patterns in the North American cannabis market is the maturation of Generation Z, which as it moves into legal-consumption age is the fastest growing consumer group in both the U.S. and Canada, according to market research firm Headset. The group’s 2023 demographics report draws on data from millions of transactions across eight U.S. states and two Canadian provinces to provide a snapshot of the traits and preferences of current consumers participating in the licensed cannabis market.
While Gen Z is rising, Millennials currently far outpace any other generation in terms of dollars spent on cannabis products. Millennials account for 46.2% of U.S. cannabis sales tracked by Headset, followed by Generation X at 23.9%, Gen Z at 16.8%, and the Baby Boomers with 13.1%. Gen Z’s share was up from 15.1% year-over-year, which we can expect to continue eating away at Millennial market share in particular going forward.
These shifts will have clear downstream effects to the products being sold, as the generational cohorts have strong category preferences as well. “Older demographics are patrons of a greater variety of products than Millennials or Gen Z,” Headset notes. “Baby Boomers and Gen X generally have more interest in ‘wellness’ related products such as Capsules, Topicals, Tinctures, and Sublingual. For Baby Boomers, wallet share to these ‘wellness’ products is over five and a half times more than Gen Z, capturing 5.1% and 0.9% in total sales respectively.”—Danny Sullivan
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