Although women control around $30 trillion in annual spending, the majority of companies often ignore this powerhouse of a demographic. Millennial women in particular tend to enjoy an above-average household income, and have been estimated to represent a $170 billion dollar market.
Despite being a newer industry with a keen ability to identify exciting new channels, the majority of cannabis companies have yet to fully capitalize on this demographic. But with studies suggesting that women have surpassed men in their consumption of cannabis, this category of consumers is a key one to target.
Health and Wellness Matters to Women
The Global Wellness Institute estimated that in 2018 the global wellness market was worth $4.2 trillion and continues to grow steadily, while women currently control about 85 percent of it. The Cannabis Consumers Coalition (CCC) reported that women now use cannabis more than men, with 53 percent having tried it compared to just 42 percent of men, and 6 percent of female respondents said they have used cannabis on a daily basis.
Some analysts have linked this trend of women being the fastest growing segment of cannabis users with the influx of CBD infused wellness products.
New Links Between Cannabis and Wellness
Before the 2018 Farm Bill, hemp (defined as cannabis with less than 0.3% THC) was still illegal in the US – the only industrialised nation to still consider it no different than cannabis. Since then, hemp has become a key player within the health and beauty industry.
Alternatives to Flower
The Yield Growth Corp. (CSE. BOSS) is one company which has seen this opportunity and taken great strides to value and cater to their female customer base. Its directors and officers have experience working with female-focused, multi-billion dollar companies such as M.A.C. Cosmetics and Aritzia, which gives it a business model that is well-versed in catering to an underrepresented female market.
The hemp industry exceeded $1 billion in revenue last year, according to Hemp Business Journal, with personal care items generating nearly $200 million. Yield Growth's subsidiary, Urban Juve, has already launched over ten hemp-based skincare products, and hopes to launch 30 more products by the summer. With Lucintel's prediction that the global skincare market is projected to reach $135 billion by 2021, the Yield Growth Corp. has positioned itself to be at the forefront of this exciting new sector of the cannabis industry.
Women's Spending Habits
While there are many things which influence the spending habits of women, the study by Merkle and Levo found that a brand's story has a huge impact on which companies women align themselves with, with an impressive 47 percent of respondent's claiming to know the origin story of their favourite brands.
Gabriella's Kitchen (CSE: GABY) is one company which has founded every aspect of its brand in its roots. GABY was created by Italian sisters Gabriella and Margot. Their desire to create a wellness company came after Gabriella was diagnosed with stage 4 lung cancer. This news spurred the pair on to find ways to prolong Gabriella's life using a holistic approach. Although Gabriella passed away from the illness, her approach to wellness and food allowed her to live exponentially longer than doctors predicted.
Her passion gave a true purpose to the company. GABY recently acquired Sonoma Pacific, a prominent California distributor with recognized and successful brands sold throughout the state's dispensaries. This acquisition, together with GABY's mainstream retail presence, has strengthened GABY's position and enabled its mission to be accessed by more consumers than ever before. Gaby's mainstream retail outlets jumped from 200 to an impressive 3400 and its distribution in the cannabis channel through its recent purchase of Sonoma Pacific Distribution grew to 80 dispensaries. Further, Sonoma Pacific estimated its Q1 revenue would reach over $8 million dollars, a staggering 1200 percent increase from the same quarter last year and a significant boost to GABY's financial outlook.
The cannabis industry is still a very fresh one, but as it grows and matures, companies like The Yield Growth Corp. (CSE. BOSS) and Gabriella's Kitchen (CSE: GABY) who create products and brands with women in mind will have put themselves in a good position to move ahead of the competition. Women do represent a very strong demographic within this industry, and they will align themselves with those companies who treat them as such.
This article first appeared on Cannabis FN.
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