Millennials buy more cannabis pre-rolls than other generations

As the largest generation in the United States, millennials are reshaping consumer spending trends – including expenditures on cannabis, where that age group dominates the pre-roll market.

Millennials – currently ages 28-43 – are leading the charge in consumption of pre-rolls, accounting for 45% of the $3 billion market, according to a recent study.

“They’re at that sweet spot where they have more money and they have more freedom than younger generations,” Custom Cones USA co-founder and CEO Harrison Bard told MJBizDaily.

“Compared to older generations, they grew up consuming cannabis.”

Consumption and sales of pre-rolls

The study combined survey data from more than 900 cannabis users nationwide with Headset analytics to create a comprehensive look at pre-rolls consumers and their buying habits.

It was conducted by Renton, Washington-based pre-rolls packaging and manufacturing company Custom Cones USA and Seattle-headquartered cannabis analytics firm Headset.

The average price for a pre-roll, according to Headset data, is $6.44 per gram, a number that’s been declining for years.

In September 2022, the average, equalized price for a pre-roll was $8.13.

While millennials account for the biggest share of consumers purchasing pre-rolls, other generations are close behind.

In September, spending on pre-rolls by generation was:

• Millennials (born 1981-96): $103.9 million for 44.6% of total spending.
• Generation X (1965-80): $56.7 million, or 24.3% of total.
• Generation Z (1997-2012): $43.2 million, or 18.5% of total.
• Baby boomers (1946-64): $29.2 million, or 12.5% of total.

Vapes, edibles and pre-rolls

Bard noted that vape pens are popular with Gen Zers but favored less by older generations.

The converse is true for edibles – they’re the least popular with Gen Zers, but older generations buy more of them.

“Joints are something that unites everyone,” Bard said.

“Everyone loves a joint, whereas you can’t really say that about the other categories.”

While flower is still the biggest seller, Bard said it’s not a consumption method the way pre-rolls are.

Among shoppers who purchase flower, rolling it into joints is the No. 1 consumption method.

Alternatively, flower can be loaded into a bong, bowl or dry flower vaporizer.

But consumption of pre-rolls continues to rise, with 82% of cannabis consumers buying them and sales revenue increasing by more than 450% over the past five years to $3 billion, according to the report.

Pre-rolls package size

Retailers sell more 1-gram, full-size pre-rolls – which consumers typically add to purchases they’re already making – than they do half-gram pre-rolls, which tend to be sold in multipacks.

“Our hypothesis is that they’re purchasing (1-gram pre-rolls) for immediate use,” Bard told MJBizDaily.

“They’re going to the store to buy whatever they really want to buy, and they’ll buy a pre-roll and do that right away.”

Bard believes a disconnect exists between what cannabis businesses think consumers want and what consumers say they want.

The study found that businesses perceive price as the biggest driver behind purchasing decisions, but consumers said they prioritize higher-potency products over lower costs.

“This is why we see infused pre-rolls being so popular – they’re always going to be the highest potency,” Bard said.

The study also found that more consumers are buying premium options such as infused pre-rolls or pre-rolls with filter tips.

Popular pre-rolls brands

Over the past two years, Jeeter has outpaced all other brands, accounting for 8.8% of all pre-rolls purchased, with sales totaling nearly $504.2 million.

The California-based brand is available in Arizona, Massachusetts and Michigan as well as its home state.

Stiizy, another California brand, ranked second, selling more than 43.4 million pre-rolls for $320.9 million in the past two years.

The company’s products are available in California and Michigan.

The Dogwalkers brand, which helped pioneer the mini pre-roll, placed third, totaling $141.6 million in sales on 6.1 million units sold during the same time period.

Gentlemen prefer pre-rolls

Although men account for the largest share of pre-roll purchases in every generation, that doesn’t necessarily mean they are consuming everything they buy.

It’s likely, Bard said, that one person is buying cannabis for the household and the responsibility for those purchases falls with men.

When it comes to day-to-day household spending, women control 85% of purchases, according to TechCrunch, a San Francisco-based technology news outlet.

But when it comes to cannabis, Bard said, “it seems like men play that role in the relationship and take the responsibility for purchasing cannabis on behalf of the household.”

Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com.