For the first time, young women are consuming more cannabis than men, marking a significant shift in the $30 billion U.S. cannabis industry. This change is prompting companies to rethink their strategies and invest more in products that appeal to women.
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Major cannabis retailers have told Reuters they’re now focusing more on items that resonate with female consumers, such as edibles, tinctures, topicals, and beverages. Although these changes might raise costs in the short term, companies are betting that the investment will pay off in the long run.
Lauren Carpenter, CEO of the cannabis dispensary chain Embarc, explained it this way: "Creating new products or rebranding may seem like a sunk cost, but with women making over 80% of purchasing decisions in the U.S., it's not just smart, it's necessary."
Data supports this shift. Women now represent 55% of users on Jointly, an app that helps consumers find cannabis products, and in some areas, they’re even outspending men. For example, in September, the average purchase by female customers at Housing Works Cannabis Co., New York’s first legal dispensary, was over $91, compared to $89 for men.
According to Carpenter, updated branding, market research, and product development tailored to women may be key to unlocking this market potential. "It’s a short-term impact on capex with the long-term benefit of capturing female consumers who are not going anywhere," she said.
In 2023, for the first time, women aged 19 to 30 surpassed men in cannabis consumption, according to a survey by the U.S. National Institute on Drug Abuse (NIDA). The rise in usage may be partially linked to women seeking relief for medical issues like stress and anxiety. NIDA director Nora Volkow, one of the study’s authors, suggested this as a possible explanation.
Many female cannabis consumers interviewed by Reuters echoed this sentiment. Most of them said they use cannabis primarily to cope with mental health concerns such as anxiety and depression. However, it’s important to note that there’s limited scientific evidence proving that cannabis can effectively treat these issues.
The ongoing legalization of cannabis across more states and increasing social acceptance of the drug have also contributed to this shift. Tatiyana Brooks, co-founder of cannabis data firm GetCannaFacts, highlighted that women are more likely than men to purchase cannabis from legal sources. "Women are more likely to purchase from the industry's legal market than their male counterparts, making them practical targets with long-term capital benefits," Brooks said.
Retailers are responding to this trend. Tilray, a New York-based company with a market cap of over $1 billion, said it’s increasing investments in brands popular with women, such as Solei Cannabis. Tilray also holds a 45% share of the cannabis beverage market, with products like the XMG brand’s lemon iced tea, priced around $6, being a hit among female customers.
Similarly, Calgary-based High Tide, a retailer, partly attributed its acquisition of the Canadian brand Queen of Bud to its female-friendly products, which feature higher concentrations of THC, the active ingredient in cannabis.
While companies haven’t yet disclosed how much these changes are costing them, the trend is still relatively new. What is clear, though, is that there’s also a generational shift happening. Dispensary owners are noticing that Gen Z customers are consuming less alcohol and tobacco, while opting for more cannabis instead.
As Brooks from GetCannaFacts put it, "Businesses that take the buying power of female cannabis consumers more seriously will stay ahead of the curve among competitors."
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