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Thursday, Apr 18, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Cannabis

Men and younger generations consume the most cannabis: Headset report

The analytics firm says Gen Z customers are spending more money on vape pens than cannabis flower

Men and younger generations consume the most cannabis: Headset report
Photo by Elsa Olofsson via Pexels

The majority of cannabis sold in Canada and the United States during the first months of this year was purchased by men, Millennials and Gen Z customers, according to the analytics firm Headset.

Headset released a new report on Thursday outlining cannabis user demographics in the U.S. and Canada. The company’s market intelligence software tracks point-of-sale transactions and offers insight into consumer trends and behaviour.

The data used for the report was derived from several American states such as Nevada, Massachusetts, Colorado, Washington, Oregon, Michigan and Arizona along with the Canadian provinces of Alberta and Ontario.

Millennials and Gen Z consumers currently account for about 72 per cent of all sales in those provinces and 63 per cent in the American states analyzed in the report. Headset says Canada has a higher percentage of young cannabis users because the legal age of consumption is 18 or 19 rather than 21 like in the U.S.

Roughly two thirds of all trackable cannabis products sold are purchased by men, says Headset.

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Read more: Curaleaf Holdings acquires medical cannabis firm Deseret Wellness for US$20M

Gen Z cannabis users are currently spending more on vape pens than flower

Headset says Gen Z consumers are spending more money on vapor pens than cannabis flower, thereby making them the first ever generation to allocate more of their cannabis funds to a product category other than flower.

Canada had a slightly higher percentage of female consumers than the U.S. between January and February this year, according to the data. Women also spend more money on certain cannabis products than men, and according to Headset, half of the revenue generated from topicals in the first two months of this year came from female consumers.

Graph via Headset

In Canada, total sales attributable to Gen Z consumers increased by 6 per cent between 2022 and 2023 while sales from that demographic in the U.S. increased by 11.3 per cent year-over-year from 15.1 per cent to 16.8 per cent of total sales.

Gen Z consumers also spend 25 per cent more on inhalable cannabis products like concentrates, pre-rolls and vapor pens than Baby Boomers do, the older age groups tend to prefer flower or edibles.

Baby Boomers and Gen X consumers have a greater interest in wellness products such as topicals, tinctures and capsules. In comparison to Gen Z consumers, they spend over 500 per cent more on those categories, accounting for 5.1 per cent of total sales versus 0.9 per cent for those in the Gen Z demographic.

Graph via Headset

Read more: Shoppers Drug Mart hands its medical cannabis business over to Avicanna

Read more: Entourage Health launches new CBD-infused gum

The most substantial difference in spending between Gen Z and Baby Boomer customers is attributable to the vapor pen category. Headset’s data has shown that Gen Z cannabis users spend 191.5 per cent more on vape products than Baby Boomers do.

Baby Boomers also spend about 46 per cent more on edibles than Gen Z consumers do and the edible category is less popular in Canada due to the restrictions that only allow one package of edibles to contain 10 milligrams of THC.

Headset recently partnered with the Interviewing Service of America for improved data collection

Millennials continue to consume the most cannabis: Headset report

Headset team at the Las Vegas Convention Center last year. Photo via Headset

Headset recently partnered with the Interviewing Service of America (ISA) to improve its data analyzing power. ISA will contribute new channels for data collection such as the CANNApinion Poll and The Green Time.

The CANNApinion Poll is an online survey that gathers information on new trends, product preferences and purchasing habits every two months and The Green Time is a community of cannabis researchers that gather feedback from each other about different pot products and services.

 

 

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