This report from Reuters News Agency, published on 22 October 2024

The U.S. cannabis industry, valued at $30 billion, is experiencing a notable change: young women are now consuming more cannabis than men for the first time. This trend is causing companies to reevaluate their product offerings and marketing strategies.

A Shift In Consumption Patterns

Data from the U.S. National Institute on Drug Abuse (NIDA) shows that women aged 19 to 30 have surpassed men of the same age in cannabis use. NIDA director Nora Volkow points out that this rise may be partly due to a need for relief from stress and anxiety. In interviews with regular female cannabis users, many cited mental health concerns, such as anxiety and depression as primary reasons for their usage.

Read: CBD Skincare Market Set to Grow Exponentially

Retailers are taking note of this demographic shift. Lauren Carpenter, CEO of the cannabis dispensary chain Embarc, told Reuters. "Creating new products or rebranding may seem like sunk cost, but with women making over 80% of purchasing decisions in the U.S., it’s not just smart, it’s necessary.

Women now account for 55% of users on Jointly, a cannabis product discovery app, leading retailers to adjust their inventory accordingly.

Changes In Retail Strategies

The average purchase size for female consumers has exceeded that of male consumers, with Housing Works Cannabis Co. reporting that female buyers spent an average of $91, compared to $89 for male buyers. In response, cannabis retailers are refocusing their shelves on products that appeal to women, such as edibles, tinctures, topicals and beverages.

New York-based Tilray Brands Inc, which has a market cap over $1 billion, is increasing investments in brands popular with female customers, including Solei Cannabis. The company has found success with its lemon iced tea, priced around $6, contributing to its 45% market share in the cannabis beverage market.

Calgary-based High Tide Inc has also made strategic moves, acquiring Queen of Bud, a brand known for products aimed at women that feature higher concentrations of THC. These shifts demonstrate the growing significance of female consumers in the cannabis market.

Broader Implications

The trend toward female cannabis consumers reflects broader societal changes, including the ongoing legalization of cannabis across various U.S. states and increasing social acceptance. Tatiyana Brooks, co-founder of the cannabis data firm GetCannaFacts, explains that women are more likely to buy from the legal market than men, presenting long-term benefits for businesses.

A generational shift is also evident, as many younger customers are choosing cannabis over alcohol and tobacco. Retailers are recognizing the importance of adapting to these new consumer preferences.

Businesses that take the buying power of female cannabis consumers more seriously will stay ahead of the curve among competitors," Brooks adds.

#