Cannabis Sales: An Upside Down Hockey Stick

The article begins by discussing the rapid growth of cannabis sales in newly legalized states, which often resemble an upside-down hockey stick. This rapid growth is attributed to both existing cannabis users and those who are curious about the product. However, as the market matures, growth slows down as the initial consumer base becomes saturated.

• Companies face challenges attracting new consumers in mature markets like California, Washington, and Colorado.
• Jeff Gonick, founder of Bogart, a company specializing in low-THC pre-rolls, highlights the importance of understanding consumer preferences in a changing market.

Who's Buying Cannabis?

The article dives into a demographic analysis of cannabis consumers based on Headset's research, which analyzed millions of retail transactions. This analysis provides valuable insights into the characteristics of the cannabis consumer base, including their gender, age, and purchasing preferences.

Men Still Dominate Cannabis Sales

While the cannabis industry is experiencing a shift in traditional gender roles, men continue to dominate cannabis purchases in both the US and Canada.

• Men make up about two-thirds of cannabis purchases.
• While women represent a slightly larger share of cannabis consumers in Canada (37.5%) compared to the US (33.8%), men still make up the majority of the customer base.

Millennials Lead the Way in Cannabis Spending

Millennials, aged 27-42, are the largest demographic in terms of cannabis spending, accounting for almost half of all cannabis revenue in the US and Canada. Gen Z (up to age 26) and Gen X (age 43-58) spend at lower rates. The article notes that customers are generally younger in Canada due to the legal consumption age of 18 or 19, compared to 21 in the US.

Cannabis Category Preferences Vary by Age

The article explores the differing preferences of various age groups when it comes to cannabis product categories.

• Baby Boomers, who tend to be interested in functional cannabis (products formulated to help with aches, sleep, etc.), favor traditional products like flower and edibles over vapes and concentrates.
• Younger consumers, in contrast, show a preference for vapes over flower products. They are also more likely to purchase newer cannabis formats, like concentrates.

Is Low-Dose the Future of Cannabis?

The article examines the growing trend of low-dose cannabis products and its potential impact on the market.

• Gonick of Bogart believes that low-dose products, including beverages, gummies, and pre-rolls, offer a more manageable experience, akin to "sipping a glass of wine instead of smashing a bottle of it".
• While many customers express interest in low-dose options, Kristi Palmer, co-founder of Kiva Confections, an edibles maker, observes that actual sales data suggests many consumers still favor high-dose products. She notes that "people say they want low, but they are buying high."

Opportunities Abound in the Cannabis Market

The article concludes by emphasizing the vast opportunities for cannabis entrepreneurs.

• The cannabis market continues to grow, as evidenced by the $100 million in cannabis sales on 4/20 this year.
• Understanding consumer demographics and preferences is crucial for navigating the evolving cannabis landscape.
• While low-dose edibles are gaining popularity, there is still a significant demand for higher potency products.