March 24, 2021 | In The IGG Blog

Outlook: U.S. Cannabis Market Update

2020 was an unpredictable, wild year. The cannabis industry rode the ups and downs, weathering the impact of COVID-19, an uncertain year of holiday sales and ended with a historic general election that legalized medical and recreational use in additional U.S. states.  

Despite the chaotic feeling of last year, cannabis sales grew in 2020. The industry expanded and many markets flourished. Reviewing Headset’s demographic & consumer behavior report, here’s a closer look at what happened to the cannabis industry in 2020. 
 

What Ages Groups Bought More Cannabis In 2020? 

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Source: A look at cannabis demographics & consumer behavior in 2020 from headset.io

When drawn out as a percentage, there’s a trend of increasing sales from older to younger generations. Gen Z saw the largest increase last year (127%) while the silent generation was the only one to show a decrease in sales. Millennials remain the largest sales sector by quite a lot, followed by Gen X. 
 

How Did Consumers Purchase Cannabis In 2020? 

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Source: A look at cannabis demographics & consumer behavior in 2020 from headset.io

Cannabis flower is still the number one purchased cannabis product, though it decreases in popularity as you look at younger generations. Baby Boomers purchased more cannabis flower in 2020 than they did in 2019, while Gen Z purchased less. Vapor pens are the second most consumed category for Gen Z, but for Baby Boomers it’s edibles. 
 

The Rise Of Vapor Pens 

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Source: A look at cannabis demographics & consumer behavior in 2020 from headset.io

2020 saw a huge jump in the use of vapor pens, but only in certain demographics. Gen Z once again had the highest overall percentage increase, with females buying more than men. Likewise for Millennials, where the increase for females was larger than it was for men. Millennial men, however, remain the largest overall group of vapor pen users, coming in at over $55,000,000 in sales for 2020. 

2020 ended as a year of growth for the cannabis industry once again. As we look forward to 2021 industry trends and beyond, assuming state legalization continues, look for Generation Z to become larger players in the market and a steady rise in female users.