Generation Z in Ontario can’t get enough cannabis during Covid

During the pandemic, cannabis sales skyrocketed, particularly among Generation Z, whose use increased by 137%. But millennial men still dominate the cannabis market in the province, according to new data from Headset on cannabis use habits in Ontario.

“Ontario is one of the most exciting cannabis markets to watch as it expands with new retailers, brands and products,” the Headset report writes, pointing to a burgeoning trend in the province.

As bureaucratic as retail adoption in Ontario has become, the province has seen an explosion of new cannabis retail outlets popping up from Kingston to downtown Toronto.

As of March 2021, 527 pot shops were open to consumers, but by December of that year the number had risen to 1,291 stores. Easier access combined with a lack of social activities means a busy time for cannabis retailers and the OCS.

This retail growth has led to increases in cannabis sales among diverse demographics. Overall, Ontario male sales are up 75% from November 2020 to November 2021, and female consumer sales are up 58% over the same period.

“We’ve seen how boredom, anxiety and a surge in retail cannabis adoption have resulted in more Canadians consuming cannabis,” said Rishi Malkani, Partner, M&A Advisory, Cannabis Leader at Deloitte Canada.

“And what also helped was the declaration of cannabis as an essential service and curbside pickup, which allowed consumers to access the product during lockdown periods.”

Both middle-aged and younger folks have been craving legal weed, Headset’s report found. Fascinating data points in Ontario include:

• Gen Z is the fastest growing group of cannabis users, with sales to their cohort more than doubling (137%) between November 2020 and November 2021.
• Baby boomers also turned to cannabis between June and November 2021 as cannabis sales to this group nearly doubled.
• Millennial men enjoy their raw buds and spend $147 million on bud between June and November 2021, accounting for 37% of Ontario’s total flower market.
• The younger men category is growing the fastest, growing their spend by 152% from 2020-2021 in the floral category. And young women are turning to legal weed, too, as cannabis sales for their demo are up 130%.
• These women also enjoy their flowers more than their West Coast counterparts. Generation Z women in Ontario spend much more of their wallet share on flowers (48.2%) than in Alberta (42.6%) and California (33.9%).

This data from Ontario mirrors what we’ve seen in the US: Generation Z consumers have seen the fastest growth in cannabis use during the pandemic, “driven by how many are turning 21, the age at which cannabis is legal to buy.” can where permitted. Destigmatization also plays a role,” notes NBC News.

Legal cannabis sales are finally competing with the illegal market

In Ontario, too, the tide could turn more toward legal sales than black market sales. The legal market was responsible for 19% of cannabis sales at the end of 2019 and 44% at the end of 2020, but now that figure has reached 54%.

The thing is, what keeps some consumers stuck in the illicit market? pricing.

According to a Deloitte Canada survey, three-quarters of Canadians who prefer to buy their weed on the black market say they are tempted to do so by lower prices compared to the legal market.

A key driver for Millennials to improve their legal consumption habits is their extensive experience in this space. “They’ve probably been users of the illicit markets for so long, and they’re well-informed about the product,” says Malkani.

“And they may want to continue buying flowers because they grew up with that format, while newer consumers may be experimenting more with non-combustible formats.”

But during the pandemic, headset data found that flower purchases across all age groups, including Gen X and baby boomers, plummeted in terms of share of purse, while the only format to see an average 5% increase across the board was pre- rolls were . (Have we all gotten a little lazier during the pandemic?)

Looking ahead, Malkani predicts that the increase in M&A activity in Canada should result in more competitive pricing and more variety should be available to consumers. “And we should see more focus on premium products because it’s not just a volume game anymore,” he adds.

David Silberberg

David Silverberg is a freelance journalist who writes for The Toronto Star, BBC News, The Washington Post, Business Insider, Cannabis Health, Merry Jane, High Times and many other outlets. He is also a writing coach, helping freelance journalists and creatives to advance their careers.

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