Akerna Flash Report: US millennials age 30-40 have spent over $4.7 billion on cannabis in 2021

Rhea-AI Summary

Akerna (KERN) released a report revealing that the 30-40 age group accounted for 30.2% of all legal cannabis sales in 2021, totaling over $4.7 billion. This demographic, known as older millennials, shows distinct purchasing patterns, favoring flower products at 49%, while males prefer it at 51% compared to 46% for females. Additionally, the average order total for this group is $116.36, with an average basket size of 2.87 products. Akerna emphasizes the importance of tailoring products to meet the preferences of this key consumer segment.

Positive

• 30-40 age group generated over $4.7 billion in cannabis sales, accounting for 30.2% of the market in 2021.
• Flower products are the top choice for 49% of older millennials, suggesting a strong market preference.
• Average order total for this demographic is $116.36, indicating healthy spending potential.

Negative

• The report highlights a preference shift toward concentrates over edibles compared to older demographics, which may influence product strategies.

DENVER, Oct. 14, 2021 /PRNewswire/ -- Business intelligence from Akerna (Nasdaq: KERN), a leading enterprise software company and the developer of the most comprehensive technology infrastructure, ecosystem, and compliance gateway powering the global cannabis industry, analyzed the 30-40 age range of cannabis consumers, a demographic that has consistently been ranked as the #1 purchaser of cannabis products in 2021. Data shows that the 30-40 age range, often referred to as older millennials, has accounted for 30.2% of all legal cannabis sales this year, with over $4.7 billion spent on cannabis products.

Older millennials lead spending in many categories, and their impact and preferences will have an enormous effect on the cannabis industry.

Regarding product preferences within the age group, the 30-40 age demographic consistently purchases flower the most at 49%, but when looking at gender, that differs. Flower consists of over 51% of sales for male product preferences, but only 46% for females compared to other products. The 5% sales share difference shows up in the cartridges/pens category, where males spend 30% of their money and females spend 35%.

Female: 

• Category sales: 
• Flower – 46% 
• Cartridge/Pens – 35% 
• Concentrates – 11% 
• Infused Edibles – 7% 
• Other – 1%

Male: 

• Category sales: 
• Flower – 51% 
• Cartridge/Pens – 30% 
• Concentrates – 13% 
• Infused Edibles – 5% 
• Other – 1%

When looking at product preferences in relation to other age groups, the 30-40 demographic purchases more concentrates than older age groups. Conversely, the same group purchases fewer edibles than older consumers.

"The 30-40 age range has consistently led cannabis consumers in the volume of cannabis purchasing," said James Ahrendt, Business Intelligence Architect at Akerna. "Dispensaries and brands should be paying close attention to this demographic group. Catering to their preferences could make a huge difference in brand and sales success."

Other values for the 30-40 age range:

1.       Average order total

a.       $116.36

2.       Average basket size

a.       2.87 products per purchase

3.       Category sales:

a.       Flower – 49%

b.      Cartridge/Pens – 32%

c.       Concentrates – 12%

d.      Infused Edibles – 6%

e.      Other – 1%

4.       Demographics:

a.       63.6% male

b.      36.4% female

About MJ Freeway

MJ Freeway is more than software as a service. Its flagship solution, MJ Platform, includes Platform Insights. Now operators, investors, and regulators can access the industry's largest and most statistically relevant database to drive data-driven business decisions.

Platform Insights provides:

• The greatest statistical relevance across countries
• Normalized data (not farmed from various disparate POS platforms)
• Full cannabis supply chain data
• Business insights founded in category management methodology

Platform Insights can eliminate the guesswork and provide answers to questions like:

• What is the gross margin return on inventory?
• What SKUs should be carried?
• How do basket adjacencies influence discounting and retention strategies?
• What does a medical market look like a year or five years after decriminalizing cannabis?

Click here for more information about MJ Platform. 

About Akerna:

Akerna (Nasdaq: KERN) is an enterprise software company focused on compliantly serving the cannabis, hemp, and CBD industry. First launched in 2010, Akerna has tracked more than $20 billion in cannabis sales to date and is the first cannabis software company listed on Nasdaq. The company's cornerstone technology, MJ Platform, the world's leading infrastructure as a service platform, powers retailers, manufacturers, brands, distributors, and cultivators.

For more information, visit https://www.akerna.com/. 

About the Akerna Flash Report:

Flash Report is a look at buying trends in the cannabis market as captured by Akerna's MJ Freeway subsidiary.

MJ Freeway provides operators with MJ Platform, the industry-leading solution for regulatory compliance technology, from seed-to-sale-to-self. Some instances of the flash report may include business intelligence derived from Akerna's family of companies, including Ample Organics, Leaf Data Systems, solo sciences, Trellis, Viridian Sciences, and 365 Cannabis.

Data is derived from MJ Platform, the leading provider of cannabis compliance software for the marijuana industry. Sales projections are based on market adjustment calculations and represent the entire US market as an aggregate.

Reporting Data is obtained from operators using Akerna's MJ Platform solutions. Akerna has one of the largest seed-to-sale footprints in the cannabis industry, operating in 15 countries and 23 U.S. states, including Pennsylvania, Oklahoma, Puerto Rico, Arizona, California, Utah, Michigan, Colorado, Montana, Nevada, Maine, Vermont, New Mexico, Missouri, Texas, Ohio, Maryland, Washington D.C., Kansas, Arkansas, New York.

Increases are relative to the prior period. Additional business intelligence data sources may include proprietary tools used by Akerna's family of companies.

Forward-Looking Statements:

Certain statements made in this release are "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such terms or expressions) are intended to identify forward-looking statements. Such forward-looking statements include but are not limited to statements regarding the ability of the MJ Platform team to help operators make decisions through analytics and reporting. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of significant known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside Akerna's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others that may affect actual results or outcomes, include (i) Akerna's ability to maintain relationships with customers and suppliers and retain its management and key employees, (ii) changes in applicable laws or regulations, (iii) changes in the market place due to the coronavirus pandemic or other market factors, (iv) and other risks and uncertainties disclosed from time to time in Akerna's filings with the U.S. Securities and Exchange Commission, including those under "Risk Factors" therein. You are cautioned not to place undue reliance on forward-looking statements. All information herein speaks only as of the date hereof, in the case of information about Akerna, or the date of such information, in the case of information from persons other than Akerna. Akerna undertakes no duty to update or revise the information contained herein. Forecasts and estimates regarding Akerna's industry and end markets are based on sources believed to be reliable; however, there can be no assurance these forecasts and estimates will prove accurate in whole or in part.

 

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SOURCE Akerna

FAQ

What percentage of cannabis sales do 30-40 year-olds account for in 2021?

The 30-40 age group accounted for 30.2% of all legal cannabis sales in 2021.

How much did the 30-40 age demographic spend on cannabis in 2021?

They spent over $4.7 billion on cannabis products in 2021.

What is the average order total for cannabis purchases among 30-40 year-olds?

The average order total for this demographic is $116.36.

What is the preference of cannabis products among males and females aged 30-40?

Males prefer flower at 51%, while females prefer it at 46%; females spend more on cartridges at 35% compared to males at 30%.

What is the significance of the 30-40 age group in the cannabis market?

This age group leads in cannabis purchasing volumes, significantly influencing market trends.