Gen Z Consumer Trends: Eco-Friendly Cannabis Packaging

Gen Z and millennial shopper insights in the cannabis industry

Headset's 2020 report on cannabis consumers states that Millennials, who represent 51.49% of cannabis sales, still dominate the cannabis industry.

The report also reveals that Gen Z, who currently represent 5.94% of cannabis sales, is the fastest-growing age-group of cannabis consumers. Understanding Gen Z consumer trends is crucial for businesses in the cannabis sector. 

And since packaging is one of the best ways to stand out on the shelf and communicate with consumers and at the point-of-sale, you would be remiss not to consider Millennials and Gen Z in your cannabis packaging decisions and strategy. 

This blog post examines how to use packaging to market your cannabis products and appeal to Millennials and Gen Z. 

Who are Millennials and Gen Z, and what do they care about?

Millennials were born between 1981 and 1996 and are currently between 26 and 41 years old. Millennials represent 22% of the population in the United States.

Gen Z, on the other hand, was born between 1997 and 2012 and is currently between 10 and 25 years old. Gen Z represents 20% of the population in the United States, and while most Gen Zers are still too young to consume cannabis, they are the fastest-growing age group of cannabis consumers. Their Gen Z shopping habits often reflect a keen interest in sustainability. 

A study by Georgetown University found that 73% of Millennials are willing to pay more for sustainable offerings.

A study by Porter Novelli & Cone found that 72% of Gen Z consider a company's mission and environmental impact when making a purchasing decision. 

Millennials and Gen Z share similar values and care about many of the same issues, including environmental sustainability and, believe it or not, packaging! 

Cannabis Packaging for Millennials and Gen Z

A recent study by Westrock reveals that the overall impact of packaging on repeat purchases has increased 71% since 2013.

For reference, Millennials were between 17 and 32 years old in 2013 and were just beginning to exert their influence on the economy in a major way through their purchase decisions. 

So what are the things you should consider when putting together a cannabis packaging strategy that appeals to Millennials and Gen Z, i.e. the largest and fastest-growing groups of cannabis consumers? 

Form and Function

Function should always be top of mind when putting together a cannabis packaging strategy, especially considering cannabis packaging regulations like child-resistance requirements. 

Form - or appeal - should also be top of mind, especially when you're marketing your cannabis brand or products to Millennials and Gen Z. Sustainable packaging trends are increasingly influencing these decisions. 

The aforementioned Westrock study found that packaging aesthetics, as a driver of overall satisfaction, has increased by 125% since 2013. 

Furthermore, 80% of Millennials value packaging that's easy to store at home, 76% of Millennials value packaging that makes products easy to find on the shelf, and 53% of Millennials value new or unique packaging shapes or appearances.

Messaging

Both Millennials and Gen Z want to know who you are as a business and what you believe in, i.e., what are your company's mission, values, and business practices? In other words, they're looking for brands and products that reflect their values and align with Gen Z consumer behaviour. 

The messaging you include on your cannabis packaging and product labels presents an excellent opportunity to target Millennials and Gen Z at the point-of-sale. 

A recent study by Nielsen reveals that 71% of Millennials actively look for brands that communicate "transparently and honestly," and they care deeply about integrated Corporate Social Responsibility (CSR).

As we mentioned above, 72% of Gen Z consider a company's mission and environmental impact when making a purchase, and Gen Z's favorite brands genuinely care about sustainability. Perhaps in part this is because of the existential weight they feel of actually having to live with the consequences of our collective actions as they pertain to climate change and environmental sustainability. 

Sustainability

Millennials and Gen Z favorite brands care about sustainability, plain and simple. Perhaps in part this is because of the existential weight they feel of actually having to live with the consequences of our collective actions as they pertain to climate change and environmental sustainability. 

Here are some quick facts regarding Millennial and Gen Z beliefs about sustainability and packaging.

Millennials and Sustainable Packaging:

1. 85% of Millennials consider packaging materials to be a part of the product and brand experience (Cision).

2. 59% of Millennials think packaging should be sustainable along the entire value chain (Cision).

3. 89% of Millennials consider sustainable primary packaging, i.e. product-touching packaging, to be very important. 

Gen Z and Sustainable Packaging:

1. 85% of Gen Z believe sustainability should be a top priority for businesses (Porter Novelli & Cone).

2. 84% of Gen Z seek products with a social or environmental benefit (Porter Novelli & Cone).

3. 77% of Gen Z boycott and refuse to buy from companies that do harm (Porter Novelli & Cone).

4. 77% of Gen Z "research whether a company is helping or hurting society and the environment (Porter Novelli & Cone).

The Truth: Most Consumers Care About Sustainability

It's 2022, and the truth is that most consumers are concerned about environmental sustainability and the adoption of sustainable packaging solutions. 

The aforementioned Westrock study found that most consumers believe packaging is a key way for brands to build trust in their products and demonstrate their care for the future of the planet. Eco-friendly packaging is not just a trend, but a necessity. 

Sixty-two percent of all consumers believe companies should manufacture products ethically and responsibly. Additionally, 62% of all consumers believe packaging should be recyclable, reusable, or compostable, and 52% of all consumers believe packaging has the power to positively impact and improve society. 

One of the best ways to communicate your cannabis brand's commitment to sustainability is through your packaging, but you need to have packaging that prioritizes sustainability first! 

Suppose you're ready to discover the real impact your packaging has on the environment and build a long-term relationship with a trusted cannabis packaging supplier. In that case, you're in the right place. It all starts with a conversation!