Akerna Flash Report: US millennials under 30 have spent $4.4 billion on cannabis in 2021

Rhea-AI Summary

Akerna (Nasdaq: KERN) highlighted that consumers under 30 accounted for 28.13% of all legal cannabis sales in 2021, spending over $4.4 billion. This demographic tends to spend more on concentrates than edibles, showing a higher cannabis knowledge level. Male users prefer flower and concentrates, while female users favor cartridges and edibles. The average order total in this age group was $102.32, with an average basket size of 2.63 products. Akerna remains a leader in cannabis data analytics, having tracked over $20 billion in sales since 2010.

Positive

• Younger millennials represent a significant segment of the cannabis market, accounting for 28.13% of sales.
• The cannabis market for those under 30 has generated more than $4.4 billion in sales.
• Akerna has tracked over $20 billion in cannabis sales, establishing itself as a key player in the industry.
• The average order total for younger consumers shows strong spending at $102.32.

Negative

• None.

DENVER, Oct. 26, 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 under 30 age range of cannabis consumers, a demographic that has consistently been ranked as the #2 purchasers of cannabis products in 2021. Data shows that this age range of younger millennial cannabis consumers accounted for 28.13% of all legal adult-use and medical cannabis sales this year, with over $4.4 billion spent on cannabis products. 

"In comparison to other age groups, younger millennials spend the largest share of their cannabis dollars on concentrates and the smallest share on edibles," said James Ahrendt, Business Intelligence Architect at Akerna. "Edibles are a simple way to dose your marijuana and consume discreetly, while concentrates require more education, tools, and preparation, exemplifying the higher levels of cannabis knowledge and use in this younger millennial age range."

While cannabis flower is the most popular product choice for younger millennials, it accounts for the least percent of their spending compared to all other age groups. This means that even though flower is the top purchased product for younger millennials, they spend a smaller percentage of their money on it than any other age group.

When comparing genders in the younger millennial category, women spend more on cartridges/pens and edibles, while men spend more on flower and concentrates. 

Male:

• Category sales:
• Flower – 48%
• Cartridge/Pens – 31%
• Concentrates – 16%
• Infused Edibles – 4%
• Other – 1%

Female:

• Category sales:
• Flower – 44%
• Cartridge/Pens – 35%
• Concentrates – 14%
• Infused Edibles – 6%
• Other – 1%

Older millennials in the 30-40 range have consistently been the age demographic leading the highest volumes of cannabis purchasing. You can check out Akerna's data snapshot on older millennials here.

Other values for the under 30 age range:

1. Average order total
1. $102.32
2. Average basket size
1. 2.63 products per purchase
3. Category sales:
1. Flower – 47%
2. Cartridge/Pens – 32%
3. Concentrates – 15%
4. Infused Edibles – 5%
5. Other – 1%
4. Demographics:
1. 63% male
2. 37% 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 consumers under 30 account for in 2021?

Consumers under 30 accounted for 28.13% of all legal cannabis sales in 2021.

How much did younger millennials spend on cannabis in 2021?

Younger millennials spent over $4.4 billion on cannabis products in 2021.

What is the average order total for cannabis purchases among consumers under 30?

The average order total for consumers under 30 is $102.32.

How does spending on cannabis products differ between genders among younger millennials?

Women tend to spend more on cartridges/pens and edibles, while men spend more on flower and concentrates.

How much cannabis sales has Akerna tracked to date?

Akerna has tracked over $20 billion in cannabis sales since its inception.