Who Buys the Most Weed in America? Gen Z subsists the baby boomers for the biggest cannabis customers!

While a larger percentage of Gen Z are not old enough to buy cannabis, the small percentage may have proven to be big consumers. And now that 420 has become one of the largest ceremonies in the United States, cannabis use and sales have increased with the large Gen Z consumers.

Over the years, Gen Z use has increased, particularly as cannabis legalization continues to gain ground in the United States. Over the past 5 years, Gen Z cannabis use has increased significantly, with data from Headset, an analytics company, backing up the claims.

Generation Z cannabis use in 2021

According to data from Headset, an analytics firm, Gen Z overtook baby boomers in total marijuana sales in the first half of 2021 for the first time in four jurisdictions. Looking at the current trend, Cooper Ashley, a senior analyst at Headset, confirmed that Gen Z will become the largest generation in terms of total cannabis sales over the next 10 to 15 years.

Only a small percentage of Generation Z, around 9 to 24 years old, are eligible to legally purchase cannabis. Despite this, this age group now accounts for 12.7% of cannabis sales in Colorado, California, Washington, and Nevada. This data, collected in the first year of 2021, shows an increase of 4% compared to 2020.

That same year, baby boomers accounted for 12.1% of total sales, down from 13.9% in 2021. This means that Generation Z has, for the first time, surpassed the Baby Boomers in terms of overall cannabis sales. Even the almighty Millennials lost market share to Gen Z as they accounted for 51.8% of cannabis sales in 2021. This corresponds to a decrease of 0.2% compared to 2020.

As of right now, in-store cannabis sales are up 148% in 2022, according to data provided by Headset. And what age group buys all the cannabis products? Gen Z!, who is now legally old enough to buy cannabis.

Demographic change creates a new market

As the cannabis industry evolves and grows, so does its target market from one generation to the next. As Gen Z comes of age, they will be quick to embrace cannabis and make new trends as the industry continues to change to meet the demands. To that end, Headset decided to look into Gen Z and buying cannabis at 420 this year. The analytics company examined purchases from basket sizes to product preferences. According to the Headset Report, Gen Z cannabis users are the most engaged and increasing their average daily spend on cannabis purchases.

While Gen Z women are buying 25% more cannabis products, Gen Z men are buying 35% more compared to the previous week.

Generation Z product preference

On the 420th, beverages had the highest increase in sales, a 5X increase compared to a normal day. Pre-rolls and edibles also showed big numbers that day. If this data translates directly to market direction, then vape pens are obsolete.

Or it could simply be carried over to Gen Z customers who wanted to buy cannabis supplies for the celebrations instead of their usual offering. Still, this available data could help retailers create the group as regular customers. Perhaps now is the right time to stock up on disposables and more edibles as Gen Z becomes more recreational with cannabis.

Total cannabis sales at Gen Z

Total cannabis sales among Gen Z grew 127%, totaling $370 million in 2018 to $850 million in 2020. Compared to Millennials, that’s about three times the cannabis sales among Millennials. According to the data provided, Millennials saw a 46% increase in cannabis sales, increasing from $3 billion in 2019 to over $4 billion in 2020.

Ashley attributes Gen Z’s remarkable growth to the fact that not everyone in the age group is eligible to purchase cannabis. Therefore, sales will continue to increase as more young adults in Gen Z come of age (21 years old). Ashley confirmed that legal cannabis sales for the age group will continue to increase as more Gen Z come of age every day. With this trend, Gen Z will eventually become one of the most important demographics in the industry.

The report also pointed out that the increase in cannabis sales by age group also appears to be declining among older generations. Cannabis sales among Generation X grew 29% from $1.6 billion to $2 billion from 2019-2020. On the other hand, cannabis sales among baby boomers grew 5%, growing from $970 million to about $1 billion from 2019-2020.

The silent generation (aged 75 to 95) was the only group to experience a massive drop in cannabis sales. The age group is seeing an 18% drop from $50 million to about $40 million. This drop in sales among older generations could be due to several factors, particularly during the Covid pandemic. During this time, many consumers stayed at home to curb virus exposure.

Gen Z consumption habits

The Headset Report indicated that cannabis may have become an inherent culture for Gen Z compared to older generations who may see cannabis as a waste. While cannabis sales among Gen Z are increasing, young adult interest in alcohol is declining.

It is said that these consumption habits among Gen Z could be a result of the impact of their different qualities. One thing about Gen Z is that they were born at a time when cannabis was beginning to be legalized. Medical cannabis was legalized in California in 1996. Oregon, Alaska and Washington took the same step in 1998. Today, 18 states have legalized recreational cannabis and 36 states have legalized medical cannabis.

With so much legalization of cannabis in the Gen Z era, the perception of cannabis has changed and the generation seems more accepting. Now, Gen Z sees cannabis as equal to alcohol and just another intoxicating option.

Conclusion

Certainly, it may be too early to draw conclusions about Gen Z’s product preferences and cannabis sales. However, if the current growth trend proves to be a solid indication of market direction, Gen Z will soon be a key consumer group for the cannabis industry.

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