Tilray, High Tide Adjust as Women Lead Cannabis Spending

U.S. Cannabis Industry Sees Surge in Female Consumers, Changing Market Dynamics

The U.S. cannabis industry, currently valued at $30 billion, is experiencing a significant demographic shift: for the first time, young women are consuming more cannabis than men. This trend is forcing companies to reevaluate their product offerings and marketing strategies, according to a report by Reuters.

A Shift in Consumption Patterns

Data from the U.S. National Institute on Drug Abuse (NIDA) reveals that women aged 19 to 30 have now surpassed men in cannabis consumption. This marks a major change in the cannabis landscape, where men traditionally outnumbered women in usage.

NIDA Director Nora Volkow attributes part of this rise to women seeking relief from stress and anxiety. In interviews with regular female cannabis users, many cited mental health concerns, such as anxiety and depression, as key reasons for their cannabis use.

Retailers are taking notice of this growing demographic. Lauren Carpenter, CEO of the cannabis dispensary chain Embarc, emphasized the importance of catering to female consumers: “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.”

Jointly, a popular cannabis product discovery app, reports that 55% of its users are now women, highlighting the need for retailers to adjust their offerings to suit this expanding customer base.

Changes in Retail Strategies

As women now spend more on cannabis than men, the industry is rapidly responding. Housing Works Cannabis Co. reported that female consumers spent an average of $91 per purchase, compared to $89 for men. In light of this shift, retailers are refocusing their shelves on products that resonate more with female buyers, such as edibles, tinctures, topicals, and beverages.

Companies are also investing in brands that cater to female preferences. New York-based Tilray Brands Inc., a major player with a market cap exceeding $1 billion, has ramped up its investments in products popular with women, including the Solei Cannabis brand. Solei’s lemon iced tea, priced at $6, has played a key role in the company’s 45% market share in the cannabis beverage segment.

Canadian company High Tide Inc. has also made strategic acquisitions to capture this growing market. It recently purchased Queen of Bud, a brand known for THC-rich products aimed at female consumers. These moves reflect the increasing influence of women in the cannabis space and the industry’s willingness to cater to their preferences.

Broader Implications

The rise of female cannabis consumers speaks to broader societal shifts, including the ongoing legalization of cannabis across the U.S. and growing social acceptance of its use. Tatiyana Brooks, co-founder of the cannabis data firm GetCannaFacts, points out that women are more likely to purchase from the legal market than men, which presents long-term opportunities for businesses.

“Women tend to gravitate toward regulated, safe products,” Brooks explained, adding that this trend could help boost the legal cannabis industry and weaken the illicit market.

A generational shift is also at play, with younger consumers increasingly choosing cannabis over alcohol and tobacco. This shift is creating a ripple effect across the cannabis industry, prompting retailers to adapt their strategies to meet the changing preferences of this new consumer base.

“Businesses that take the buying power of female cannabis consumers more seriously will stay ahead of the curve among competitors,” Brooks concluded, emphasizing that this demographic shift is not just a temporary trend but a pivotal change in the market.

As young women continue to outpace men in cannabis consumption, the U.S. cannabis industry is undergoing a transformation. Companies are rethinking their product lines, marketing approaches, and overall strategies to better serve this influential and growing customer segment. This shift not only highlights the evolving role of women in the cannabis market but also signals broader changes in consumer behavior, legalization efforts, and societal attitudes toward cannabis use.