The rise of millennials as the dominant consumer group in the United States is reshaping many industries, including the rapidly evolving cannabis sector. These young adults, aged 28 to 43, are significantly influencing the trends and purchase patterns in the cannabis pre-roll market.
Dominance of millennials in cannabis consumption
Millennials are leading the charge in cannabis consumption, particularly pre-rolls. This generation has more disposable income and freedom compared to younger groups. Furthermore, they have grown up with a more open attitude towards cannabis use, which contrasts sharply with older generations who may still harbor stigmas against it. Studies combining surveys from over 900 users and data analytics show that millennial spending on pre-rolls outpaces other age groups significantly.
In terms of figures, millennial consumers spent $103.9 million on pre-rolls, accounting for 44.6% of total spending. Generation X followed with $56.7 million, while Generation Z contributed $43.2 million. These numbers illustrate how entrenched millennials are as key players in this market.
Shift in consumer preferences by generation
Different generations exhibit varying preferences in cannabis products. Vape pens, popular among Gen Zers, aren’t as favored by older customers. Conversely, edibles find more favor with older generations, rarely appealing to the younger crowd. Pre-rolls continue to draw universal appeal because everyone enjoys a joint, making them a staple across ages, unlike vapes or edibles.
The dominance of pre-rolls is evident despite flower still being the top-selling product category. The simplicity and convenience of pre-rolls make them an attractive option for immediate consumption, explaining their widespread popularity and impressive sales growth of over 450% in the last five years.
Trends in pre-roll packaging and pricing
The study found interesting patterns in pre-roll purchasing habits. Retailers sell more full-size 1-gram pre-rolls than half-gram ones typically sold in multipacks. It’s presumed that the ease and immediacy of use drive these decisions. Shoppers often add a pre-roll to their cart for quick consumption after buying their primary products.
There appears to be a gap between what businesses believe drives purchases and actual consumer priorities. While companies think price is the main deciding factor, consumers generally seek higher potency even at higher costs. Infused pre-rolls, notably high-potency, maintain immense popularity as a result.
Leaders in pre-roll brands
Over the past two years, certain brands have stood out in the pre-roll market. Jeeter has emerged as the leading brand, responsible for 8.8% of all pre-roll sales, totaling nearly $504.2 million. Stiizy follows closely, having sold more than 43.4 million pre-rolls for $320.9 million during the same period. Another noteworthy brand, Dogwalkers, specializing in mini pre-rolls, secured third place with $141.6 million in sales from 6.1 million units.
This competitive landscape highlights the intense race among brands to capture increasingly discerning and quality-conscious consumers.
The role of gender in cannabis purchases
Men dominate pre-roll purchases across all generations. However, they may not consume everything they buy, instead taking on the responsibility of purchasing cannabis for their household. This finding aligns with broader consumer behavior trends where women control most day-to-day household purchases, but men handle specific categories like cannabis.
Understanding the dynamics of who buys cannabis and, perhaps more crucially, who uses it within households is vital for tailoring marketing strategies and product offerings to meet diverse needs.
Insight into household purchasing behavior
Bard’s observations reveal that cannabis buying often involves complex interpersonal dynamics. Though women generally manage household spending, the responsibility for cannabis purchases typically falls on men. This suggests households view cannabis differently from other daily essentials, treating it as a niche category requiring separate roles and decision-making processes.
These insights shed light on consumption patterns and guide better-targeted communication and marketing efforts aimed at both male buyers and female household decision-makers.
Thus, examining generational trends, understanding packaging preferences, recognizing leading brands, and considering gender roles offer a comprehensive overview of the current state and future direction of the cannabis pre-roll market. Each element provides valuable knowledge that contributes to strategic business decisions in this ever-growing industry.