The cannabis industry is booming, and millennials and Gen Z are leading the way. These two generations account for a significant portion of cannabis sales in both Canada and the United States, with millennials remaining the dominant force in the industry. However, Gen Z is quickly catching up, and their preferences are changing the industry’s landscape.
Millennials and Gen Z’s Impact on the Cannabis Industry
Ludwig von Mises said that the real bosses in a market economy are the consumers, and this holds true for the cannabis industry. Millennials and Gen Z make up the majority of cannabis consumers, and their buying habits shape the industry.
In Canada, the legal age for cannabis consumption is 19, while in the United States, it’s 21. Therefore, Canada has a higher concentration of younger cannabis consumers. However, even before legalization, Canada had the highest concentration of young cannabis consumers, despite the intended goal of legalization to “keep it out of the hands of children.”
Gen Z is the fastest-growing group of cannabis consumers in both countries, with their share of total sales growing by 11.3% in the US and 6% in Canada. Maine and Colorado in the US have the highest percentage of sales to people under 40.
Product Preferences of Millennials and Gen Z
Millennials and Gen Z have different product preferences than older generations. Baby boomers and Gen Z are more interested in wellness products such as capsules, topicals, and tinctures, while millennials and Gen Z prefer inhalable cannabis like concentrates, flower, vape pens, and pre-rolls.
Older generations tend to be more conservative with their cannabis and prefer flower and edibles. However, vape pens are so popular among Gen Z that they outsell flower, and for the first time in history, Gen Z spends more on vape pens than actual flower.
Edibles in Canada
Edibles are less prevalent in Canada than in the United States due to the arbitrary THC cap of 10mg on edibles. This makes them highly unpopular for typical connoisseurs and insulting to medical patients. Moreover, concentrates are more popular with older consumers in Canada, while younger consumers prefer edibles in the United States.
The Future of the Cannabis Industry
With millennials and Gen Z accounting for over half of the cannabis market, the industry’s future may be less about cultivating new strains and more about crafting the ideal vape pen. Vape pens are the most popular among younger generations due to their convenience and discreteness.
Conclusion
Millennials and Gen Z dominate the cannabis industry and are rapidly changing the industry’s landscape. Their preferences for inhalable cannabis and vape pens are revolutionizing the industry and may change the focus from cultivating new strains to crafting the ideal vape pen.
FAQs
- What age group dominates the cannabis industry?
Millennials and Gen Z dominate the cannabis industry, accounting for 72.1% of all tracked sales in Canada and 63% in the United States.
- What are the product preferences of younger generations in the cannabis industry?
Younger generations prefer inhalable cannabis like concentrates, flower, vape pens, and pre-rolls.
- What is the impact of younger generations on the cannabis industry?
Younger generations are changing the industry’s landscape, and their preferences for inhalable cannabis and vape pens are revolutionizing the industry.
- Why are edibles less prevalent in Canada than in the United States?
Edibles are less prevalent in Canada than in the United States due to the arbitrary THC cap of 10mg on edibles.
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