One expert’s take on how Gen Z could end up shaping the cannabis market…
I recently got a question that I’d like to cover: What do I think of Gen Z and how they might shape the cannabis market?
If you listen to the media, you’d think Gen Z is the most exciting thing to happen since Canada‘s legalization.
The argument is that Gen Z grew up with medical marijuana and some were teenagers when pot first became legal in Washington and Colorado. That stigma of cannabis being “the devil’s weed” is long gone among this cohort.
They’re a lot more open to cannabis.
They view it as a better alternative than alcohol.
Here’s the Thing About Gen Z
But the key word here is, “eventually.”
In my store, Gen Z makes up about 2% of sales. Nationally, it’s around 3% to 6%.
It will take five to seven years before they’re buying as much as millennials or Generation X. Maybe longer.
They would rather get free flower from friends who grow it. Or throw a few plants outside in legal states and consume the fall harvest.
That’s just one problem. There is also an issue of legality.
Too Young to Market to
When we talk about “Gen Z,” we’re generally speaking about those born from about 1995 to 2010. At the time of this writing, that means this group ranges from ages 10 to 25.
As a business owner, I won’t advertise to Generation Z. As a population, too many are under 21. And ethically (and legally), I can’t advertise to a group of people who are mostly under 21 years of age.
While Gen Z may be the fastest-growing group of cannabis consumers, they’re starting from a low base. By the time they’re big enough to matter, the market will be split three ways: Gen X, Gen Z, and millennials.
That means cannabis companies will have a choice to make. Target one demographic, or try and become attractive to all of them?
One such company doing a good job at that second choice is Curaleaf Holdings Inc. (OTC: CURLF). It continues to expand its footprint and swallow up different brands that target different types of consumers.
Better yet, Curaleaf secured a $300 million line of credit, which will keep it away from needing to raise money in the market doing these viral times.
So, to answer the question of What do I think of Gen Z and how they might shape the cannabis market?
As of right now, this group is too young to have a significant impact.
But I will be keeping an eye on the companies that can successfully target their marketing to consumers of all generations.
Advisory Board Member, National Institute for Cannabis Investors
Sometimes the best move to make is to buy – and that’s exactly what Curaleaf is doing. Already one of the largest multi-state operators (MSOs) in the country, the company will now sell more products than ever before with its acquisition of the Colorado-based edibles company, BlueKudu. Get the full story on this major expansion…
6 responses to “Gen Z Promises to Disrupt the Cannabis Market (Eventually)”
April 28 2020